Fresh concerns about the outlook for technology giants dragged U.S. equity futures lower, while Asian stocks also slipped on Friday. The dollar gave back some of its advance from the prior session.
Japanese shares fell over 1%, with declines more modest in Hong Kong and Australia. Contracts on the Nasdaq 100 and S&P 500 sank following a string of reports from the likes of Amazon.com Inc. and Apple Inc., with the iPhone maker down more than 4% in after-hours trading.
The S&P 500 had earlier bounced back a day after its biggest rout in four months, with investors encouraged by better-than-forecast economic data even as they kept a wary eye on growing coronavirus infections. This month’s sell-off in Treasuries eased but the benchmark yield remained above 0.80%. Elsewhere, oil rose from a multi-month low.
Weakness in technology shares is adding to volatility that’s likely to remain elevated heading into next week’s U.S. election, with global equities on course for the worst weekly decline since March. Lockdown measures in some countries and the lack of agreement on a U.S. stimulus plan are also weighing on sentiment. New U.S. coronavirus cases topped 86,000, setting a daily record.
“There is going to be more volatility ahead of the election,” Quincy Krosby, chief market strategist at Prudential Financial Inc., said on Bloomberg TV. “Over the weekend folks are going to be focused on Pennsylvania to see whether or not Biden is gaining there. The concern is if he gains a little bit, that may be one where you could actually look to a contested election.”
Here are the main market moves:
- S&P 500 Index futures fell 0.9% and Nasdaq 100 contracts were down 1.3% as of 12:22 p.m. in Tokyo. The S&P 500 rose 1.2% on Thursday.
- Japan’s Topix index fell 1.3%.
- Hong Kong’s Hang Seng slipped 0.1%.
- Shanghai Composite was little changed.
- South Korea’s Kospi lost 1%.
- Euro Stoxx 50 futures were 0.2% lower.
- The Bloomberg Dollar Spot Index slipped 0.1% after increasing 0.4% Thursday.
- The yen was at 104.45 per dollar, up about 0.1%.
- The offshore yuan rose 0.3% to 6.6860 per dollar.
- The euro bought $1.1691, up 0.2%.
- The yield on 10-year Treasuries steady at about 0.81%.
- Australia’s 10-year yield was at 0.82%.
- West Texas Intermediate crude gained 0.7% to $36.42 a barrel.
- Gold was at $1,877.37 an ounce, up 0.5%.
— With assistance by Joanna Ossinger