U.S. stock index futures are pointing to a particularly ugly open that could take major indexes toward two-year lows. S&P 500 futures are down more than 31 points, or 1.7%, while Dow futures are off around 270 points.
Treasury bond prices are jumping, sending yields down hard. The 10-year yield has come off lows burt remains down more than 8 basis points at 1.5928%–not so far away from all-time lows in the mid 1.40s set back in mid-2012.
The yen soared and gold is up more than 3.6%, or $42 dollars, as the scramble for safety continues.
There seems to be no single catalayst. Some commentators are pinning the blame on Janet Yellen’s Wednesday testimony in which she didn’t pour much cold water on prospects for further rate hikes.
But that seems a stretch given that stocks took the testimony relatively well in stride during the testimony. Yellen, will be testifying again Thursday.
Meanwhile, this graphic tweeted out by Rareview Capital does a great job illustrating the vicious circle that seems to be driving market action these days: