U.S. Stocks May Extend Yesterday's Pullback In Early Trading

(RTTNews) - Following a moderate pullback in the previous session, stocks may see further downside in early trading on Wednesday. The major index futures are currently pointing to a lower open for the markets, with the S&P 500 futures down by 0.6 percent.

Lingering uncertainty about the outlook for trade and the global economy may weigh on the markets following the surge seen over the past several weeks.

Stocks have shown a substantial recovery from their early April lows, but traders have recently been questioning the strength of the rebound amid a lack of clear progress on new trade deals.

A continued increase by bond yields may also generate some selling pressure, with the thirty-year bond yield climbing above 5 percent due to concerns a new U.S. tax bill could worsen the country's deficit.

Overall trading activity is likely to remain relatively subdued, however, as a lack of major U.S. economic data keeps some traders on the sidelines.

The U.S. economic calendar picks back up in the coming days, with reports on weekly jobless claims and new and existing home sales likely to attract attention.

After recovering from an early slump to end the previous session slightly higher, stocks moved back to the downside during trading on Tuesday. The major averages all moved lower, although selling pressure remained somewhat subdued.

The major averages climbed well off their worst levels going into the end of the day remained in negative territory. The Dow fell 114.83 points or 0.3 percent to 42,677.24, the Nasdaq slid 72.75 points or 0.4 percent to 19,142.71 and the S&P 500 declined 23.14 points or 0.4 percent to 5,940.46.

In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Wednesday. Hong Kong's Hang Seng Index rose by 0.6 percent and China's Shanghai Composite Index inched up by 0.2 percent, although Japan's Nikkei 225 Index bucked the uptrend and fell by 0.6 percent.

Meanwhile, the major European markets are turning in a mixed performance on the day. While the U.K.'s FTSE 100 Index is up by 0.1 percent, the German DAX Index is down by 0.2 percent and the French CAC 40 Index is down by 0.6 percent.

In commodities trading, crude oil futures are jumping $0.92 to $62.95 a barrel after slipping $0.11 to $62.03 a barrel on Tuesday. Meanwhile, an ounce of gold is trading at $3,295.80, up $11.20 compared to the previous session's close of $3,284.60. On Tuesday, gold surged $51.10.

On the currency front, the U.S. dollar is trading at 143.78 yen compared to the 144.51 yen it fetched at the close of New York trading on Tuesday. Against the euro, the dollar is trading at $1.1320 compared to yesterday's $1.1283.