Wall Street rose early Tuesday even as Hong Kong's Hang Seng fell more than 9% following Beijing's decline. refrained from major spending initiatives As China's economy slows down.
S&P 500 futures rose 0.4% before the bell, and Dow Jones Industrial Average futures rose 0.2%.
Stocks tumbled Monday as bond yields rose, but stabilized early Tuesday, with oil prices falling after five straight days of gains.
U.S. stocks are hovering near record levels on relief from rising interest rates. finally go back down Currently, the Federal Reserve is expanding its coverage. keep the economy strong instead of just Fighting high inflation.
When government bonds, considered the safest possible investment, pay more interest, investors less likely to pay very high prices For stocks and other high-risk investments.
It's hard for investors to ignore that the 10-year Treasury yield is 4.03%, up from 3.62% three weeks ago.
The two-year Treasury yield, which more accurately reflects expectations for the Fed, fell to 3.98% on Tuesday after rising to 3.99% the previous day.
U.S. Treasury yields may also be feeling the rise due to the recent rise in oil prices. Oil prices are skyrocketing due to concerns such as: Worsening tensions in the Middle East maybe it can be done eventually disrupt global oil flows.
Benchmark U.S. crude oil fell $1.62 to $75.52. It was up 3.7% on Monday, but rose nearly 11% in October. Brent crude oil, the international standard, fell $1.68 to $79.25 per barrel. It also rose 3.7% on Monday.
As earnings season begins, PepsiCo shares fell 1% after the company lowered its organic earnings forecast for this year. US consumers continue to pull back After years of rising prices, we had a hard time buying snacks and drinks.
DocuSign rose 5.6% after S&P Dow Jones Indices announced the electronic document signing company will join the S&P MidCap 400. DocuSign will replace MDU Resources, which will be lowered to the S&P Small Cap 600 after announcing last week that it would spin off its construction services. Subsidiary Everus Construction Group.
In Asian markets, the Hang Seng Index fell 9.4% to close at 20,926.79. Technology stocks and China-related stocks led the decline.
Shares initially jumped 10% in the Shanghai market on Tuesday, but have since fallen slightly. Stimulus details Beijing authorities' plans fell short of what investors expected.
The Shanghai Composite Index rose 4.6% to end at 3,489.78. In Shenzhen, Japan's smaller market, the main index rose 8.9%.
Hong Kong stocks had posted strong gains over the past week as mainland Chinese markets closed for a week-long holiday and reopened on Tuesday. This move was accelerated by the recent announcement of the Chinese government's plans for further support for the economy and financial markets.
“The Chinese market rally has hit a wall, leaving investors deflated. The surge in trading restarts from a week-long holiday has lost momentum quickly, and once-excited bulls are now , is licking its wounds,” Stephen Innes of SPI Asset Management said in a comment.
Shares in food delivery company Meituan fell 15.5%, and e-commerce giant Alibaba fell 8.8%. Rival JD.com plunged 11.9%.
In other Asian trading, Tokyo's Nikkei stock average fell 1% to 38,937.54. The dollar fell to 147.79 yen from 148.18 yen. A strong yen hurts the profits of major export manufacturers, so stock prices tend to fall.
In Seoul, the Kospi fell 0.6% to 2,594.36. Australia's S&P/ASX 200 fell 0.4% to 8,176.90.
In early trading in Europe, Germany's DAX was down 0.2%, Paris' CAC40 index was down 0.6% and London's FTSE 100 index was down 1.1%.
The euro rose slightly to $1.0979 from $1.0977.
___
AP Business Writer Zen Soo in Hong Kong contributed.
