The Australian share market is poised for a sluggish start to Thursday as interest hikes and the threat of a global recession come to a close.
The ASX SPI 200 futures have just pushed into the green -- 6,597 by 6:50 am AEST.
The Australian dollar was down by 0.4 per cent at 68.79 US cents.
On Wednesday, the benchmark ASX 200 index lost 0.9 per cent, to 6,700.
The Dow Jones Industrial Average increased by 82.32 points, or 0.2 per cent, to 31,029 in New York, while the other benchmarks were slightly in the red.
The S&P 500 fell to 3,818, while the tech-heavy Nasdaq Composite inched into the red at 11,177.
The worst first half for Wall Street's benchmark index since President Richard Nixon's first term, according to Reuters.
Megan Horneman, chief investment officer at Verdence Capital Advisors, said the market is struggling to find direction.
She said that the markets are waiting for earnings season when we get more clarity about future earnings and an economic slowdown, and we had disappointing data.
The S&P 500 has set a course for its biggest first-half percentage drop since 1970, with the end of the month and the second quarter a day away.
The Nasdaq was on its way to its worst-ever first-half performance, while the Dow appeared to be on track for its biggest January-June drop since the financial crisis.
All three indexes were expected to post their second straight quarter declines. The last time that happened was in 2015.
We have a central bank that has had to transition from a decades-old easy money policy to a tighter cycle, according to Horneman.
This is a new investment for a lot of investors. We're seeing a repricing for what we expect to be a very different interest rate environment going forward. Five of the 11 major sectors of the S&P 500 lost ground on the day, with energy stocks suffering the largest percentage drop. Healthcare led the gainers.
The benchmark Treasury yields have gone up by over 1.6 percentage points so far in 2022, making it their biggest first-half jump since 1984.
That is why interest-rate sensitive growth stocks have plunged over 26 per cent year-to-date.
The US GDP data shows that the economy contracted slightly more than expected, while investors are eyeing rate hikes to rein in inflation.
Consumer confidence data showed consumer expectations had sunk to their lowest level since March 2013.
General Mills' packaged food company jumped by 6.3 per cent after its sales beat estimates.
Bed Bath Beyond Inc tumbled 23.6 per cent after the retailer announced it had replaced chief executive Mark Tritton, hoping to reverse a slump.
FedEx Corp dropped 2.6 per cent in the wake of its disappointing margin forecast for its ground unit.
In Europe, the pan-European STOXX 600 index lost 0.7 per cent, Germany's DAX fell 1.7 per cent and Britain's FTSE fell 0.1 per cent.
Spot gold has fallen into the red, selling for US 1,820. Brent crude was up 2.3 per cent, to US 115.20 per barrel, while West Texas crude was up 2 per cent, to US 109.53 per barrel.