S&P 500 futures drop sharply, dollar remains firm

• Expectations of tightening by the Fed and the economic outlook hit the markets.
• Metals fall sharply again, gold tests $1730.
• The dollar remains firm, Treasury bond yields remain in the area of ​​maximums in weeks.

Wall Street futures are losing 1% on average, while European markets are also down. The economic outlook along with expectations of further rate hikes continue to weigh on investors. The dollar remains firm, while treasuries validate recent losses.

Strong red and vulnerability on Wall Street

The expectation of a global recession and high inflation continue to weigh on investor sentiment. In turn, analysts point out that the expectations of a Federal Reserve softer rates have been reduced and they also explain that there are doubts about the effectiveness of monetary policy, in order to lower inflation without significantly affecting economic growth.

In this context, S&P 500 futures fall 1.15% and Nasdaq futures 1.55%. In London it loses 0.25%, in Frankfurt the DAX falls 1.92% and in Paris the CAC 40 yields 1.43%.

In Europe Gas prices rise again due to unforeseen maintenance on the Nord Stream network. This contributes to fears at the start of the week.

The treasury bond yields They do not register significant variations on Monday and remain in the area of ​​maximums in weeks. The 10-year tranche yields 2.97% and the 30-year 3.21%. This contributes to the strength of the dollar that measured by DXY rises for the fourth day and trades at 108.40. EUR/USD is testing levels below parity.

The AUD and the NZD rose modestly against the dollar and regained some ground on lower Chinese benchmark lending rates.

The metals they continue to return recent gains. The Prayed and the silver they are at three and a half week lows at $1735 and $18.90 respectively. A week ago it had reached its highest in months.

The cryptocurrencies they also continue to give back part of the recent rise. Bitcoin tested levels below $21,000 and is in the 1-month low zone, validating last week’s sharp drop.

Among the companies reporting results Monday are Zoom, Nordson Corp, Allego and Dada.

When it comes to economic data, Monday is light. The activity index of the Chicago Fed will be published. The key event of the week will be the Jackson Hole symposium, which begins on Thursday. Jerome Powell will speak on Friday.

Technical levels