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Futures Pointing To Mixed Open On Wall Street

The major U.S. index futures are currently pointing to a mixed open on Wednesday, with stocks likely to move in opposite directions once again following the mixed performance seen in the previous session.

The futures pared earlier losses after the Bank of England announced plans to begin temporarily purchasing long-dated U.K. government bonds to address dysfunction in the gilt market.

The BoE said the purchases would be carried out on "whatever scale is necessary" to restore orderly market conditions.

The move comes as U.K. bond yields have spiked after the government revealed its mini-budget including significant unfunded tax cuts.

Meanwhile, a notable decline by shares of Apple (AAPL) may weigh on the Nasdaq, with the tech giant tumbling by 2.4 percent in pre-market trading.

The drop by Apple comes after a report from Bloomberg said the company is backing off plans to increase production of its new iPhones this year after an anticipated surge in demand failed to materialize.

After failing to sustain an early move to the upside, stocks fluctuated over the course of the trading session on Tuesday before eventually ending the session mixed.

While the tech-heavy Nasdaq managed to end the day modestly higher, the Dow and the S&P 500 once again fell to their lowest closing levels since late 2020.

The Nasdaq bounced back and forth across the unchanged line in afternoon trading before closing up 26.58 points or 0.3 percent to 10,829.50.

Meanwhile, the Dow fell 125.82 points or 0.4 percent to 29,134.99 after surging by nearly 400 points in early trading, while the S&P 500 edged down 7.75 points or 0.2 percent to 3,647.29.

Bargain hunting contributed to the early rebound on Wall Street, as traders picked up stocks at reduced levels following recent weakness.

Buying interest waned over the course of the morning, however, as concerns about higher interest rates and the outlook for the global economy continued to weigh on the markets.

The subsequent pullback by stocks came as treasury yields once again surged after an initial move to the downside, with the yield on the benchmark ten-year note reaching its highest levels in over twelve years.

A turnaround by the value of the U.S. dollar also led to renewed selling pressure on Wall Street amid concerns about the impact on corporate profits.

On the U.S. economic front, a report released by the Commerce Department showed a modest decrease in new orders for U.S. manufactured durable goods in the month of August.

The Commerce Department said durable goods orders slipped by 0.2 percent in August after edging down by 0.1 percent in July. Economists had expected durable goods orders to decrease by 0.4 percent.

Excluding a steep drop in orders for transportation equipment, durable goods orders inched up by 0.2 percent in August, matching the uptick seen in July as well as economist estimates.

Meanwhile, a separate Commerce Department report unexpectedly showed a substantial rebound in new home sales in the month of August.

The report showed new home sales skyrocketed by 28.8 percent to an annual rate of 685,000 in August after plunging by 8.6 percent to a revised rate of 532,000 in July.

The surge surprised economists, who had expected new home sales to slump by 2.2 percent to an annual rate of 500,000 from the 511,000 originally reported for the previous month.

The sharp increase came after new home sales tumbled to their lowest annual rate since hitting 532,000 in March 2016.

The Conference Board also released a report showing a bigger than expected improvement in consumer confidence in the month of September.

The organization said its consumer confidence index climbed to 108.0 in September from an upwardly revised 103.6 in August.

Economists had expected the consumer confidence index to inch up to 104.3 from the 103.2 originally reported for the previous month.

Interest rate-sensitive utilities stocks moved sharply lower over the course of the session, dragging the Dow Jones Utility Average down by 2.0 percent to a three-month closing low.

Substantial weakness also emerged among tobacco stocks, as reflected by the 2.0 percent plunge by the NYSE Arca Tobacco Index. The index tumbled to its lowest closing level in well over two years.

Commercial real estate and banking stocks also saw notable weakness on the day, while steel stocks rallied, driving the NYSE Arca Steel Index up by 1.9 percent.

Energy stocks also saw significant strength amid a rebound by the price of crude oil. The NYSE Arca Oil Index and the Philadelphia Oil Service Index both advanced by 1.5 percent.

Computer hardware and semiconductor stocks also regained ground following recent weakness, contributing to the uptick by the tech-heavy Nasdaq.

Commodity, Currency Markets

Crude oil futures are jumping $1.44 to $79.94 a barrel after leaping $1.79 to $78.50 barrel on Tuesday. Meanwhile, an ounce of gold is trading at $1,645.0, up $9.10 compared to the previous session's close of $1,636.20. On Tuesday, gold inched up $2.80.

On the currency front, the U.S. dollar is trading at 144.62 yen compared to the 144.80 yen it fetched at the close of New York trading on Tuesday. Against the euro, the dollar is trading at $0.9585 compared to yesterday's $0.9594.

Asia

Asian stocks tumbled on Wednesday as hawkish Fed talk added to worries about a looming recession. Concerns over Europe's energy crisis and unfunded U.K. tax cuts also kept investors nervous.

The U.S. dollar scaled a fresh two-decade peak and 10-year U.S. Treasury yields topped 4 percent for the first time in more than a decade after Chicago Fed President Charles Evans, St. Louis Fed President James Bullard and Minneapolis Federal Reserve Bank President Neel Kashkari all said they need to keep raising rates to restore price stability.

San Francisco Fed President Mary Daly said that the Fed wants lower inflation but not a recession.

Chinese markets fell sharply as the yuan hit a record low versus the dollar amid waning economic growth. The benchmark Shanghai Composite Index dove 1.6 percent to 3,045.07, while Hong Kong's Hang Seng Index plunged 3.4 percent to 17,250.88 ahead of China's Communist Party Congress in October.

Japanese stocks lost ground to end near three-month lows, as investors fretted about the inflationary impact of the yen's recent sharp moves.

Consumer inflation excluding fresh food may rise this year, but the rate of growth will slow thereafter on energy prices, minutes from the Bank of Japan's July meeting said earlier in the day.

The Nikkei 225 Index slumped 1.5 percent to 26,173.98, while the broader Topix closed 1.0 percent lower at 1,855.15.

TDK gave up 3 percent after reports of Apple dropping plans of producing more iPhones. Heavyweights SoftBank Group, Fanuc and Fast Retailing fell 2-4 percent.

Eisai soared 17.3 percent after the company reported successful trial of its Alzheimer's drug.

Seoul stocks slumped to over a two-year low as the Korean won hit a 13-year low on recession woes. The Kospi tumbled 2.5 percent to close at 2,169.29, the lowest since July 20, 2020.

Market bellwether Samsung Electronics fell 2.4 percent to close at a fresh 52-week low of 52,900 won. LG Energy Solutions, Hyundai Motor, Samsung SDI and LG Chem lost 2-4 percent.

Australian markets ended at fresh three-month lows even as retail sales data for August came in above expectations. The benchmark S&P ASX 200 Index fell 0.5 percent to 6,462, dragged down by tech stocks and financials. The broader All Ordinaries Index slid 0.6 percent to settle at 6,659.80.

Telix Pharma plummeted 15.4 percent after its oncology unit announced that it withdrew its application for marketing authorization for Illuccix in Europe.

Europe

European stocks are seeing further downside on Wednesday as investors worry about energy shortages and Britain's radical tax cuts to spur growth.

News about the large amount of gas leaking from the Nord Stream pipelines has deepened concerns over energy and the overall economic circumstances in Europe.

The International Monetary Fund has urged the U.K. government to "re-evaluate" a package of unfunded tax cuts, saying it may fuel inflation and would likely increase economic inequality.

Weak consumer sentiment readings from Germany and France also raised concerns about the economic outlook.

The German consumer confidence index plunged to -42.5 in October from revised -36.8 in the previous month, survey results from the market research group GfK showed. The score was weaker than the economists' forecast of -39.0.

The French consumer confidence index fell to 79.0 in September from 82.0 in August, statistical office Insee said. Economists had forecast the index to fall to 80.0.

The dollar marched to a new 20-year high and government bond yields surged after several Fed officials reiterated their hawkish stance toward interest rate hikes.

While the German DAX Index has slumped by 1.1 percent, the U.K.'s FTSE 100 Index is down by 0.8 percent and the French CAC 40 Index is down by 0.5 percent.

Dutch biopharmaceutical company Pharming Group N.V. has fallen despite news that the U.S. FDA has accepted its New Drug Application for leniolisib for priority review.

British online fashion retailer Boohoo has also shown a substantial move to the downside after cutting its full-year forecast.

German lender Commerzbank AG has also slumped after a warning that its third quarter operating results would be impacted because of additional provisions at Polish subsidiary mBank.

Conglomerate Thyssenkrupp has also plunged after JPMorgan reinstated its coverage of the stock with an "underweight" rating.

Meanwhile, Burberry Group, a luxury fashion company, has rallied as it announced the appointment of Daniel Lee as new Chief Creative Officer, effective October 3.

Swiss pharmaceutical company Roche has also soared as an Alzheimer's drug from rivals Eisai and Biogen showed benefit in a large trial.

U.S. Economic Reports

The National Association of Realtors is scheduled to release its report on pending home sales in the month of August at 10 am ET. Pending home sales are expected to tumble by 1.4 percent in August after slumping by 1.0 percent in July.

A pending home sale is one in which a contract was signed but not yet closed. Normally, it takes four to six weeks to close a contracted sale.

At 10:10 am ET, St. Louis Federal Reserve President James Bullard is due to give welcoming remarks before a Community Banking Research Conference hosted by the St. Louis Fed.

Federal Reserve Chair Jerome Powell is also scheduled to deliver welcoming remarks at the conference at 10:15 am ET.

At 10:30 am ET, the Energy Information Administration is due to release its report on oil inventories in the week ended September 23rd.

Crude oil inventories are expected to inch up by 0.3 million barrels after rising by 1.1 million barrels in the previous week.

Fed Governor Michelle Bowman is scheduled to speak on the New Landscape for Banking Competition before the Community Banking Research Conference at 11 am ET.

At 1 pm ET, the Treasury Department is due to announce the results of this month's auction of $36 billion worth of seven-year notes.

Chicago Federal Reserve President Charles Evans is scheduled to participate in a moderated question-and-answer session on current economic conditions and monetary policy hosted by the London School of Economics at 2 pm ET.

Stocks In Focus

Shares of Biogen (BIIB) are skyrocketing in pre-market trading after a clinical trial showed the Alzheimer's drug the biotechnology company is developing with Japanese partner Eisai slowed cognitive and functional decline.

Recreational vehicle maker Thor Industries (THO) may also move to the upside after reporting fiscal fourth quarter results that exceeded analyst estimates on both the top and bottom lines.

On the other hand, shares of Lyft (LYFT) are likely to see initial weakness after the ride-hailing company confirmed plans to freeze all hiring in the U.S. through the end of the year.

Biopharmaceutical company Mind Medicine (MNMD) is also moving sharply lower in pre-market trading after announcing the pricing of a public offering of 7 million common shares at $4.25 per share. Share of MindMed ended Tuesday's trading at $6.12 per share.

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