U.S. stock index futures on Wednesday showed Wall Street in danger of recording a seven-day losing streak, though a surprise intervention from the Bank of England helped to limit losses.
U.S. stock indexes on Wednesday opened mixed, helped by a fall in Treasury yields and a surprise intervention from the Bank of England in the U.K. gilt market, but Wall Street stocks were still in danger of recording a seven-day losing streak.On Tuesday, the Dow Jones Industrial Average DJIA, +0.56% fell 126 points, or 0.43%, to 29135, the S&P 500 SPX, +0.58% declined 8 points, or 0.21%, to 3647, and the Nasdaq Composite COMP, +0.34% gained 27 points, or 0.25%, to 10830.
Bond markets have been leading stocks of late as investors fret that the Federal Reserve’s determination to combat inflation will continue to push borrowing costs higher, damaging the economy and corporate earnings. But news from the Bank of England that it was stepping into buy unlimited amounts of long-dated bonds helped stem losses. The U.K. central bank said the move was done on financial stability grounds after gilt yields soared and the pound slumped to a record low in the wake of last Friday’s budget announcements. The BOE also postponed a planned sale of gilts for next week. The yield on the 10-year gilt TMBMKGB-10Y, 4.072% skidded 52 basis points to 3.99%.
Also pressuring futures was a 3% fall in Apple shares AAPL, -3.21%, amid reports the technology giant was halting plans to increase production of its new iPhones.
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