The dollar is trading more mixed now in European morning trade, with yields sitting lower and equities posting a decent recovery off earlier lows. Of note, US futures have pared some of the heavier losses with S&P 500 futures now down just 0.2%.
S&P 500 futures
Tech shares are still leading the downside, with Nasdaq futures down 0.5%. But that at least is less painful than the losses to start the session. The drag in tech comes from Intel’s softer guidance for Q1 this year, despite Q4 results beating estimates.
If anything else, do keep a watchful eye on the rates market as that could have implications for broader sentiment. And that includes a spillover impact on the equities space. The US PCE price report will be the main event later in the day and that should have some impact on rates, depending on the data.