US pre-open: Futures in the red amid recessionary concerns
Wall Street futures were in the red ahead of the bell on Wednesday amid an inverted yield curve that has sparked recession fears.
As of 1225 BST, Dow Jones futures were down 0.23%, while S&P 500 and Nasdaq-100 futures had the indices opening 0.25% and 0.40% lower, respectively.
The Dow closed 338.30 points higher on Tuesday following the release of some key economic data and word of some potential progress in talks between Russia and Ukraine.
Progress in ceasefire talks between the two nations were again in focus prior to the open on Wednesday, with Russia stating late on Tuesday that it would lower its military presence in certain parts of Ukraine. However, several countries, including the US and the UK, remain sceptical about the promise, with Moscow continuing to attack certain parts of Ukraine on Wednesday.
West Texas Intermediate futures climbed a little under 2% to $106.26 per barrel on Wednesday, while Brent crude futures were up 1.57% at $111.96 a barrel.
Market participants were also firmly fixed on the bond market after the US five-year and 30-year Treasury yields inverted on Monday - a historical sign of a coming recession. On Tuesday, the main yield spread traders watch, the two-year and the 10-year rate, came close to inverting but managed to stay positive before climbing back to about seven basis points on Wednesday.
On the macro front, mortgage applications declined 6.8% to 425.1 in the week ended 25 March, according to the Mortgage Bankers Association, the lowest level seen since December 2019 as mortgage rates surged to their highest level in eleven years. Applications to refinance a home loan tumbled 14.9% to the lowest since May 2019, while those to purchase a home edged up just 0.6%.
Still to come, March's ADP employment change report will be published at 1315 BST, while a reading of fourth-quarter gross domestic product figures will follow at 1330 BST.
Elsewhere, Kansas City Fed president Esther George will address the Economic Club of New York later in the session.
No major corporate earnings were slated for release on Wednesday.