The deflationary selling binge in commodities has continued with a vengeance, with sagging crude oil prices leading the way.
After mixed corporate earnings and data showing China’s service sector lagging, U.S. stock futures were down on Tuesday. Dow Jones Industrial Average futures dropped 34 points, or 0.2 percent, to 16453.
US markets received a barrage of key economic data points last week that pointed to an improving US growth trajectory.
As economic data caused worries that the Federal Reserve might increase interest rates sooner than some have expected, the U.S. S&P 500 stock index fell to its worst daily low since April on Thursday.
The markets are facing a repeat of “irrational exuberance.”
Into the end of April, the US economy was clawing its way toward self-propagating growth, but clearly recent growth has not been strong enough.
While the US economy is improving, the improvement probably isn’t definitive enough to satisfy US equities, which have recently carved out fresh new all-time highs.
Inclement weather in a top-growing region prompted soybean futures to drive toward their top price in about eight weeks on Wednesday, according to Bloomberg.