Investing.com – Wall Street is set at a lower open on Monday as fears of slowing growth and a possible US recession are leading investors to reduce risk benefits.
But positive economic data out of Germany and relief from political development helped calm the nerves that triggered the S & P 500's worst day since January at the end of last week.
Blue chip fell 12 points, or 0.1% to 25.558.5 points at 6:46 AM (11:46 GMT), the lost 2 points, or 0.1[ads1]% to 2,808.88 points, while the tech heavy went down 24 points, or 0.3% to 7.345.25 points.
Investors were still jittery after the US yield curve reversed on Friday for the first time since 2007. The yield on the 10-year Treasury fell below the 3-month state tax rate, an event some analysts believe to overshadow a recession, but That is not always the case. Under normal circumstances, a long-term bond should have a higher return than a short-term bond, as there is a higher risk for a longer period.
However, Rob Carnell, economist at ING, warned against reaching a quick conclusion. "We suspect that there is no guarantee that a draw from such data will be drawn until the 3M-10Y yield curve is reversed by a significant amount," Carnell said. "Just inverted, as today's market indicates, doesn't do it for me."
The President of the Chicago Federal Reserve Bank also confided in the economic perspective of the United States.
"Some of this is structural, having to do with lower trend growth, lower real interest rates," he said Monday at the Credit Suisse Asian Investment Conference in Hong Kong. "I believe in this environment, it is probably more natural that yield curves are somewhat flatter than they have been historical."
Former Fed leader Janet Yellen also said on Monday that the yield curve may signal the need to cut interest rates to some point, but that.
In one day without major US financial reports, traders helped breathe relief when the business enterprise pulled out more than expected, and sent its first improvement after six months of decline.
The yield curve also returned to its normal form with the rate of 2.45% at 6:47 ET (11:47 GMT) while the reference moved higher to 2.47%.
Also, relief, special adviser found no sign of interaction between President Donald Trump's campaign team and Russia, and did not provide enough evidence to guarantee to let the president obstruct justice, US lawyer William Barr said Sunday.
The end of the investigation removes what some see as a disturbance from urgent economic issues such as infrastructure spending or trade relations with China.
In corporate news, Apple (NASDAQ 🙂 is on a secret annual effort to build a television and movie offer, while Boeing (NYSE 🙂 will map out more than 200 global airlines, technical managers, and regulators this week at their 737 MAX aircraft.
On the earnings front, Dropcar (NASDAQ :), Eastman Kodak (NYSE 🙂 or Winnebago Industries NYSE 🙂 were among companies scheduled to report on Monday.
Outside bonds and shares, which measure the dollar against six rival currencies, 0.1% ahead spread to 96.12 within 6:48 ET (11:48 GMT)]
In goods, 0.3% rose to $ 1,322.85 a troy ounce, while trading down 0.1% at $ 58.98 per barrel.
– Reuters contributed to this report.