U.S. futures, bonds swing as recession fears linger

US stock-index futures and Treasuries fluctuated between gains and losses amid concern over a global economic slowdown.

Contracts on the S&P 500 and Nasdaq 100 gauges were little changed, while Europe’s Stoxx 600 climbed the most since June 24. The two- and 10-year US yield curve remained inverted as investors awaited the minutes of the Federal Reserve’s last meeting to gauge its policy priorities. The dollar rose for a fourth day.

While bargain hunters chasing technology stocks boosted US equity gauges on Tuesday, it only helped to mask a deepening slump in stocks linked to economic activity, such as energy, commodity and industrial names. A renewed spike in China’s COVID cases and a worsening gas crisis in Europe signaled that a worldwide slowdown is coming even as central banks tighten monetary policy to contain consumer prices.

“Markets are caught between two opposing forces and that’s the place we are going to be in for the next few months,” Diana Amoa, chief investment officer for long-biased strategies at Kirkoswald Asset Management, said on Bloomberg Television. “We go from trading lower growth to trading high inflation.”