Wall Street opens in the red

Wall Street’s main indices opened in the red on Tuesday morning as investors remained cautious amid rising bond yields and the fallout from Archegos Capital. Shortly after the opening bell, the Dow Jones Industrial Average was down 0.14% at 33,126 while the S&P 500 dropped 0.28% to 3,960 and the Nasdaq fell 0.6% to 12,980. Stocks are under pressure after yields on 10-year US treasuries recently rose to their highest level in 14 months. Meanwhile, shares in GameStop Corp (NYSE:GME) were back in play in early deals, rising 2.5% to US$186.20 following news it has recruited a former Amazon exec as its new chief growth officer. 7:55am: Wall Street heads for lower open The main indices on Wall Street are headed for a softer open on Tuesday as the Archegos Capital hedge fund liquidation continues to make waves alongside rising bond yields. The Dow Jones Industrial Average is tipped to shed 47 points at 33,124 while the S&P 500 is expected to retreat 14 points to 3,957. The tech-heavy Nasdaq 100 is seen tumbling 103 points to 12,863. “Rising yields are once again set to drive market direction, with the growth stocks’ valuations being called into question. Rotation into value looks set to be the trade of the day,” suggested OANDA’s Sophie Griffiths. Swissquote’s Ipek Ozkardeskaya said the Archegos story continues to dominate the headlines, “as investors question whether the fall of the secretive hedge fund and its financial implications are done and dusted, or is it just the tip of the iceberg, that there are more players out there that have super leveraged positions, that could also go wrong and result in a similar fallout”. “If we start putting the pieces of the puzzle together, the GameStop saga and the short-squeeze frenzy, the Archegos capital fall, abnormal price rallies in cryptocurrencies and other obscure assets, there is a lesson to be taken. There is too much liquidity in the system, and separate occurrences are a clear sign that the financial markets are fuming, even though there is not an immediate systemic risk to the financial system right now,” Ozkardeskaya said. Talking of GameStop Corp (NYSE:GME), the video games retailer has appointed Elliott Wilke as its chief growth officer. Wilke previously held a number of positions at online retail giant Amazon Inc 9NASDAQ:AMZN). "At GameStop, Mr. Wilke will oversee growth strategies and marketing, with a focus on increasing customer loyalty and growing the reach of Power Up Rewards and Game Informer," the company’s announcement said. As far as economic data are concerned, the focus in the US today is likely to be the Conference Board’s consumer survey for March, according to Daiwa Capital Markets. “Daiwa America chief economist Mike Moran expects that the disbursement of another round of rebate checks and the expansion of supplemental unemployment benefits probably brightened consumers’ collective mood in March. That said, the expected reading of 96.0 – a lift of 4.7pts – is not especially impressive, as it trails other observations in the current cycle (e.g. 101.4 in October) and is far below the pre-pandemic high of 132.6 in February 2020,” Daiwa said. Three things to watch for on Tuesday: The earnings diary for Tuesday will see numbers from athletic apparel firm Lululemon Athletica Inc (NASDAQ:LULU) as well as pet food seller Chewy Inc (NYSE:CHWY) and the maker of Cholula Hot Sauce McCormick & Co (NYSE:MKC) Also of interest will be PayPal Holdings Inc (NASDAQ:PYPL) after the firm rolled out a cryptocurrency checkout feature to its US customers On the macro front, US house price index data could be of interest alongside speeches from a number of the Fed’s representatives