ASX poised to open higher despite Wall Street tumble
Negotiations between Russia and Ukraine remain uncertain, however, and Russian bombardments in areas they said would dampen optimism about the prospects for resolving the conflict.
Tech stocks were among the largest weightings in the broader market. Many companies in the sector have high values which tend to have an outsized effect on the evolution of stock indices. Chipmaker Nvidia fell 3.4%. Retailers also fell. Home Depot slipped 2.9%.
Oil prices, volatile since Russia’s invasion of Ukraine in February, gained ground. U.S. benchmark crude oil rose 3.4% and Brent crude, the international standard, 2.9%. Energy stocks gained ground as oil prices rose. Phillips 66 rose 4.8%.
Bond yields fell. The yield on the 10-year Treasury note, which influences interest rates on mortgages and other consumer loans, slipped to 2.35% from 2.40% on Tuesday evening.
Bond yields have mostly risen this year as Wall Street braces for a policy shift from the Federal Reserve. The central bank, along with its global counterparts, is raising benchmark interest rates to help tackle persistently rising inflation.
Wall Street is also watching the bond market closely for clues about the economy’s trajectory. On Tuesday, the 10-year Treasury yield briefly fell below the 2-year Treasury yield, in what Wall Street calls an “inversion” of the Treasury yield curve. Investors are taking note as prolonged yield reversals have accurately predicted previous US recessions. The 2-year Treasury yield fell to 2.33% from 2.35% on Tuesday night.
Investors have several other economic updates to review this week. On Thursday, the Commerce Department will release its Personal Income and Spending report for February and the Labor Department will release its March jobs report on Friday.
Wall Street is also gearing up for the latest round of corporate report cards as the quarter draws to a close. Several companies have already released financial results and updates.
Sportswear maker Lululemon jumped 9.6% after announcing encouraging financial results for its latest quarter and giving strong sales guidance. Online pet store Chewy fell 16.1% after reporting a bigger fiscal fourth-quarter loss than analysts expected.