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Stock futures fall after S&P 500 hits new low for the year; 10-year Treasury yield briefly

Wall Street set to open in the red after S&P 500 hits new low for the year

Stock futures fell Wednesday as traders struggle to find their footing after the S&P 500 notched a fresh bear market low in the previous session.

Futures tied to the Dow Jones Industrial Average lost 57 points, or about 0.2%. S&P 500 futures shed 0.4%, and Nasdaq 100 futures slid about 0.9%.

Stock futures pared earlier losses after the Bank of England said it would temporarily purchase long-dated UK government bonds in an effort to stabilize the plunging British pound. Sterling briefly popped on the news before trading 0.5% lower against the dollar at $1.0647.

The 10-year U.S. Treasury yield gave back its initial gains after the announcement, last trading at about 3.93%. Earlier in the trading session, the benchmark rate broke above 4% for the first time since 2008.

Wall Street is coming off a mixed session in which the S&P 500 reached a new bear market low of 3,623.29 and posted its sixth straight day of losses, while the Nasdaq Composite eked out a gain.

Several technical metrics show that the stock market may be oversold, but some on Wall Street are worried that investors have not priced in an earnings slowdown and the impact of the Federal Reserve’s rate hikes. The S&P 500 breaking below its previous low is a key indicator for some that stocks still have further to fall.

“I think we’re certainly not at the end of the road in terms of pricing in the full recessionary outcome. … We really need to get to dirt cheap valuations on equities, and we’re not quite there yet,” Anastasia Amoroso, chief investment strategist at iCapital, said on Tuesday’s “Closing Bell.

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