Asian stocks tumbled and U.S. futures declined Wednesday as rising virus cases around the world led to renewed concern about their economic impact. Treasuries held overnight gains.
An MSCI Inc. gauge of Asia-Pacific shares was on track for its biggest drop in four weeks with Japan and Hong Kong leading. Nasdaq 100 futures underperformed. S&P 500 contracts fell after the benchmark dropped for a second day, extending its slide from an all-time high, with investors showing caution ahead of the brunt of the earnings season. Treasuries held a rally that sent the 10-year yield to its lowest level in more than five weeks. The dollar edged higher. Oil prices retreated.
After rising to record highs, stocks find themselves under pressure from a renewed surge in Covid-19 case around the world, raising the prospect of new lockdowns and hampering the economic recovery. Tokyo and Osaka will ask the Japanese government to declare a state of emergency. Glitches with vaccine rollouts are also raising concerns about the pace of reopenings.