US stock futures extended their decline in early pre-market deals
US stock markets failed to find a floor at the end of a choppy week to lose ground further on Friday. After posting their best daily gains since 2020, the S&P 500 and the Dow shed 0.57% and 0.30%, respectively, while the Nasdaq fell 1.40%. For the week, the S&P 500 and Nasdaq finished with losses of 0.21% and 1.54%, respectively. In individual stocks, Microsoft stocks gave up nearly 1%, Netflix plunged 3.90%, while Amazon fell 1.4%.
Asian equity markets finished lower on Monday amid the resurgent worries about recession after a lockdown in Shanghai was tightened further. Adding to negative tone in the region, China’s exports fell in April to their lowest level in almost two years. MSCI’s broadest index of Asia-Pacific shares outside Japan fell 1.3%, and Japan’s Nikkei 225 gave up 2.53%.
In Europe, stocks opened lower as global investors keep worrying about inflation, rates, economy, and geopolitics. The pan-European Stoxx 600 slipped 0.6% in early trade. On the data front, Eurozone’s investor sentiment slumped to -22.6 in May from -18 in April versus -20.8 expected. US stock futures extended their decline in early pre-market deals, with rate concerns persisting at the start of the week.
The dollar hit two-decade peaks on Monday due to risk aversion across the financial markets. The USD index climbed to 104.20 as US 10-year bond yields rose to a fresh top at 3.15%. After failure to regain the 1.0600 figure, EURUSD came back under the selling pressure amid broad-based USD strength. The pair derailed the 1.0500 mark earlier in the day, suggesting fresh long-term lows could be seen in the near term.
