Dow e-minis were down 111 points, or 0.61 percent, with 10,274 contracts changing hands at 8:24 a.m. ET (1224 GMT). Fed Governor Lael Brainard reaffirmed a dovish stance in the prior session, stating that the case for preemptive tightening has become less compelling.
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The S&P 500 remains down nearly 3 percent from before Friday’s steep selloff, even though interest rate futures indicate expectations for a rate hike at the Fed’s September 20-21 meeting remain low.
Longer-dated yields continued to take a hit, with the 20-year yield rising 5.0 basis points to 0.490 percent, hitting a six-month high.
The IEA, which represents 29 oil-producing countries, is predicting slower growth in demand for oil because of a more pronounced economic slowdown during the third quarter of the year, among other factors.
Department store chain Macy’s rose 2.4 percent after Citigroup upgraded the stock, while Coach dropped 2.6 percent on a Morgan Stanley rating cut.
The yield on the benchmark 10-year Treasury note reached 1.722%, according to Tradeweb.
One bright spot in the market was Apple, which jumped 2.55 percent after two carriers reported strong demand for its newest smartphones.
The CBOE Market Volatility index .VIX , known as Wall Street’s fear gauge, has also spiked and dropped with the stock market’s gyrations.
Nasdaq 100 e-minis were down 25.25 points, or 0.53 percent, on volume of 11,366 contracts. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes.
Energy shares in the S&P 500 fell over 2 Tuesday, leading declines in the broader index.
Oil prices dropped 2 percent following data that showed large weekly builds in USA petroleum products, sending the S&P energy index .SPNY down 1.09 percent. On the Nasdaq, 1,493 issues rose and 1,122 fell. Activist investor Carl Icahn, who bought a stake in Freeport-McMoRan previous year, has pushed the company to spin off its oil and gas business so it can focus on copper mining.
BONDS: U.S. government bond prices slipped. Brent crude, the benchmark for global oil prices, slid 83 cents, or 1.7 percent, to $47.50 a barrel in London. Wells Fargo lost $1.84, or 3.8 percent, to $46.70 and Goldman Sachs dipped $3.95, or 2.3 percent, to $167.11.
The S&P 500 index showed no new 52-week highs and two new lows, while the Nasdaq recorded 14 new highs and 22 new lows. Intersil shares climbed 9.2% to $21.58. Asian stocks mostly rallied.
SLIMMING DOWN: Weight Watchers International slumped 4.3% to $9.91 after the weight-loss company said Chief Executive James Chambers will step down at the end of the month.
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CURRENCIES: The dollar rose to 102.31 yen from 101.84 yen. However, the Hang Seng index in Hong Kong lost 0.3 percent. The euro inched down to $1.1237 from $1.1241.
