Contracts on U.S. equities declined on Wednesday as markets weighed inflation and COVID-19 pandemic uncertainties, Bloomberg reported.
- Drops were also recorded in the crypto space, with Bitcoin down to $35,000 after the People’s Bank of China reiterated that digital tokens are not valid for payment.
- Futures on three indexes dropped — S&P 500 by 1% as of 8:25 a.m. New York time, Nasdaq 100 by 1.4%; and Dow Jones Industrial Average by 0.9%.
- The spot market also registered declines — the Stoxx Europe 600 by 1.6%; and MSCI World index by 0.4%.
- An analyst said inflation concerns continued to hound the markets, but the risk of another taper tantrum remains low.
- Yields on the 10-year U.S. Treasury climbed to 1.66% and Britain’s 10-year yield by 0.88, while Germany’s 10-year yield was nearly unchanged at -0.10%.