The market feared that the global recession might curb fuel demand, surpassing fears of supply disruptions. Crude oil prices plummeted 10% during the day, and US oil fell below 100 US dollars/barrel for the first time since May this year. Prices of commodities, from energy to metals to agricultural products, have declined one after another, giving people hope that inflation will begin to ease. Lunxi fell more than 5%, and lunzine plummeted 4%; London copper prices, which are regarded as a barometer of the world economy, fell nearly 4% during the day, hitting an intraday low since December 2020. Prices of wheat, corn, and soybeans all fell back to the level of the end of March.
Tracey Allen, a commodity strategist at J.P. Morgan Chase, said that in the week ending June 24, about 15 billion US dollars of capital was withdrawn from the commodity futures market. Part of the reason for the fall in commodity prices can be seen as investors' retreat. However, it is worth noting that the fundamentals of crude oil supply and demand have not changed.
On Tuesday, the three major US stock indices all fell by more than 1.5%, and the S&P 500 index fell 2% at one point. The fall in 10-year US Treasury yields boosted valuations of technology stocks, especially growth stocks. The S&P 500 index and NASDAQ both rose sharply in the afternoon, and eventually changed from decline to rise.
US 2-year and 5-year Treasury yields are inverted, for the first time since February 2020. Meanwhile, 2-year and 10-year treasury bond yields are inverted for the third time since this year.
According to statistics from the Federal Reserve Bank of St. Louis of the United States, 197...