At around 7 a.m. ET, Dow Jones Industrial Average futures indicated a decline 86 points at the open. Futures on the S&P 500 and Nasdaq Composite also fell.
The benchmark 10-year Treasury yield traded at 2.37 percent and hit its lowest level since late 2017. Investors are keeping an eye on rates after the 10-year fell below the 3-month rate last week for the first time since 2007. It is a development that investors call an inverted yield curve and is seen as an early indicator of a recession.
The U.S. Treasury yield curve has inverted before each recession in the past 50 years and has only offered a false signal just once in that time, according to data from Reuters.
Yields fell on Wednesday after Stephen Moore, who is expected to be nominated to the Federal Reserve Board of Governors, called for the central bank to cut rates by half a percentage point. Moore made his remarks in an interview with The New York Times, noting he is not a “dove” or a “sycophant” for President Donald Trump.
Investors have been piling into Treasurys amid the release of weaker-than-expected economic data. The disappointing data have stoked fears that economic growth may be slowing down.
On the data front Wednesday, international trade figures for January will be released at around 8:30 a.m. and fourth-quarter current account balance data is set to follow later in the session.
Wall Street’s main indexes registered solid gains in the previous session, but finished below their session highs in a reflection of the underlying concerns about the economic outlook.