U.S. stock index futures dropped on Wednesday as the ongoing trade war sparked fears of a global economic slowdown and drove investors away from riskier assets and into traditional safe havens like bonds, gold, silver and JPY.
The drop in stock futures came as Treasury yields fell to their lowest level since 2016 while gold reached a more than six-year high. The benchmark 10-year Treasury yield traded at 1.63% after staring August above 2%.
Gold futures broke above $1,500 per ounce for the first time since April 2013. The metal’s returns are now higher than the S&P 500′s for the year.
In corporate news, Disney shares slid on weaker-than-expected results for the previous quarter. Disney’s results were weighed down by increasing losses in streaming services such as Hulu, ESPN+ and Disney+. The media giant also blamed the integration of Fox’s entertainment assets for the weak numbers. Disney shares traded down more than 3% in the premarket.
Source: CNBC
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