WASHINGTON (dpa-AFX) - After turning lower over the course of the previous session, stocks may see some further downside in early trading on Wednesday. The major index futures are currently pointing to a lower open for the markets, with the Dow futures down by 59 points.
A further inversion of the yield curve may weigh on Wall Street, with the inversion seen as an indicator that a U.S. recession is looming.
The yield on the benchmark ten-year note has fallen further below the two-year yield, with the spread widening to its lowest level since 2007.
The White House has sought to downplay recession concerns, although the inverted yield curve combined with the escalating U.S.-China trade war have generated considerable uncertainty on Wall Street.
News that new U.K. Prime Minister Boris Johnson is preparing to suspend parliament, paving the way the way for a no-deal Brexit, may also weigh on Wall Street.
Overall trading activity may be somewhat subdued, however, as a lack of major U.S. economic data may keep some traders on the sidelines.
In the coming days, a revised reading on second quarter GDP may attract attention along with reports on weekly jobless claims, pending home sales and personal income and spending.
After failing to sustain an early move to the downside, stocks moved mostly lower over the course of the trading session on Tuesday. The major averages pulled back well off their highs of the session and into negative territory.
The major averages ended the day in the red but off their lows of the session. The Dow slid 120.93 points or 0.5 percent to 25,777.90, the Nasdaq fell 26.79 points or 0.3 percent to 7,826.95 and the S&P 500 dropped 9.22 points or 0.3 percent to 2,869.16.
In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance during trading on Wednesday. Japan's Nikkei 225 Index inched up by 0.1 percent, while China's Shanghai Composite Index dipped by 0.3 percent.
Meanwhile, the major European markets have all moved to the downside on the day. While the U.K.'s FTSE 100 Index has fallen by 0.3 percent, the French CAC 40 Index and the German DAX Index are down by 1 percent and 1.1 percent, respectively.
In commodities trading, crude oil futures are climbing $0.81 to $55.74 a barrel after surging up $1.29 to $54.93 a barrel on Tuesday. Meanwhile, after jumping $14.60 to $1,551.80 an ounce in the previous session, gold futures are inching up $0.80 to $1,552.60 an ounce.
On the currency front, the U.S. dollar is trading at 105.77 yen compared to the 105.75 yen it fetched at the close of New York trading on Tuesday. Against the euro, the dollar is valued at $1.1084 compared to yesterday's $1.1090.
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