Stock market live updates: Futures point to losses as euro slides towards dollar parity

Stock futures pointed to a second-straight day of losses Tuesday morning as markets remain transfixed on the euro’s slide towards parity with the dollar.

Near 7:20 a.m. ET, S&P 500 and Dow futures were pointing to losses larger than 0.7% at the market open. Nasdaq futures were pointing to losses closer to 0.4% Tuesday morning, a day after the tech index fell more than 2.2%.

Overnight, the euro fell as low as 1.0004 against the dollar as all eyes remain on whether the currency will fall below parity — or a 1:1 ratio — with the dollar.

In energy markets, crude oil futures were trading below $100 and commodities continue to remain under pressure amid investor fears of a global recession.

Tamara Basic Vasiljev, senior economist at Oxford Economics, said in a note Monday that all of the financial easing seen in advanced economies worldwide has been undone by this year’s surge in interest rates and decline in financial markets. In Vasiljev’s view, however, the recent slide in commodities suggests inflation pressures may have peaked, which could ease financial conditions going forward.

“Now that the commodity prices are falling again and inflation peak looks to be within reach it is likely that we are seeing the worst of financial conditions tightening,” Vasiljev wrote. “If so, conditions worsening is dire but the level is still more in favor of [an] orderly slowdown rather than a recession.”

Elsewhere in markets, crypto was under pressure again on Tuesday morning, with bitcoin (BTC-USD) falling below $20,000 once again after the world’s biggest cryptocurrency enjoyed its best week since last fall.

This week also marks the start of second quarter earnings season, with PepsiCo (PEP) the first major corporation to post results for the quarter before Tuesday’s market open.

The beverage and snack giant reported sales that beat estimates and raised its forecast for the full-year. PepsiCo CFO Hugh Johnston will join Yahoo Finance Live in the 9 a.m. ET hour to discuss these results in more depth.

Elsewhere in corporate news, Walmart (WMT) and electric vehicle maker Canoo (GOEV) announced a deal Tuesday morning that included a deal for the retailer to buy 4,500 electric vehicles with an option to purchase an additional 100,000 vehicles.

Shares of Canoo were up as much as 35% in pre-market trading following this announcement. Shares of the company, which made their market debut via a SPAC merger in 2020, were down 70% this year through Monday’s close.

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