U.S. Stock Futures Catch Breath After Rout in Underlying Market
(Bloomberg) -- The rout in U.S. stocks may be set to take a small breather even as Asian markets continue to slump.
December contracts on the S&P 500 Index rose as much as 0.5 percent in Asia trading after the underlying gauge fell 3.1 percent, pushing a technical indicator into oversold territory. Futures on the Nasdaq 100 and Dow Jones Industrial Average climbed 0.6 percent and 0.4 percent as of 7:55 a.m. in London respectively.
Asia’s main equity gauge entered a bear market overnight and continued losses with a 2.2 percent decline on Thursday. The region’s equities have lost more than $4.9 trillion in value this year.
“Technically we’re a little bit oversold,” said Kyle Rodda, a Melbourne-based market analyst at IG. “You might see a little bit of cooling on that basis.”
The S&P 500 Index has tumbled 8.9 percent this month, exacerbated on Wednesday as mixed corporate earnings and weak housing data fueled anxiety that rising prices will crimp economic growth. Investors are also struggling to come to terms with what many see as a new regime of higher bond yields, slowing profit growth, and persistent political tensions at home and abroad.
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