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Stock Rebound Fails and Futures Plunge on Earnings: Markets Wrap

  • Goldman strategists see risk of ‘growth shock’ for equities
  • IMF cuts world growth forecast on weaker U.S., China outlooks
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WATCH: HSBC’s Steven Major discusses U.S. inflation, Fed policy and why he favors Chinese government bonds.Source: Bloomberg
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An afternoon rebound for stocks proved short-lived, with major averages ending lower as investors remained on edge over the Federal Reserve’s inflation-fighting stance and Russia’s saber-rattling against Ukraine. Selling worsened after the close as disappointing tech earnings sent futures plunging.

In another jittery session, the S&P 500 closed at the lowest since October, with technology shares weighing heavily on the market. The gauge briefly erased losses as dip buyers resurfaced to snap up bargains after a slide of nearly 3% earlier in the day. Unlike Monday, the index failed to stage a dramatic comeback. In fact, there have never been two consecutive sessions when it drew down at least 2% from the previous day’s close to finish higher, according to data compiled by Bloomberg going back to the early 1980s. In late trading, an exchange-traded fund tracking the Nasdaq 100 plunged more than 1.5% after Microsoft Corp. reported a slowdown in cloud growth.