Wall Street appeared headed for a modest upswing when trading starts on Tuesday, as global markets fluctuated, a day after a market rout pushed the S&P 500 into a bear market with losses of more than 20 percent from its recent peak.
S&P 500 stock futures rose on Tuesday, and European markets climbed higher in early trading but failed to hold onto their gains. After an initial steep sell-off, many markets in the Asia-Pacific region recovered some their losses.
In another sign that some market jitters had eased, government bond yields — a measure of borrowing costs — pulled back from their highs.
Still, global markets are on shaky ground as multi-decade highs in inflation, supply-chain shortages and geopolitical tensions weigh on the outlook for growth around the world.
In the United States, inflation is accelerating at its fastest pace since 1981, amplifying worries about the direction of the economy as surging prices squeeze household budgets and company profits. As gas, food, rents and other expenses rise sharply, the Federal Reserve, at its meeting this week, is expected to discuss making the biggest interest rate increase since 1994. It will announce its latest policy decision on Wednesday.
The State of the Stock Market
The stock market’s decline this year has been painful. And it remains difficult to predict what is in store for the future.
It’s a tricky balancing act. If the Fed moves too aggressively to rein in inflation, it could put the brakes on the…
