Dow, S&P and Nasdaq futures fall after Tuesday’s bounce, yields fall

US stock futures fell on Wednesday, a day after bank stocks rebounded from recent declines following the collapse of Silicon Valley Bank (SIVB) and Signature Bank (SBNY).

Dow (INDU) futures fell 1.7%S&P 500 futures (SPX) He slipped 1.8%and Nasdaq 100 futures (NDX: IND) were down 1.6%.

Deutsche Bank’s Jim Reid said Tuesday’s rebound indicates support for bank depositors is averting an immediate crisis. “More to the medium term, we should view this episode as evidence that the tightening cycle is having an impact with the usual lag and events are unlikely to stop here.”

But for now, Reid said the crisis conditions are reversing. “This is evident across the board, with stocks (including bank stocks) experiencing a significant recovery, and sovereign bond yields paring a good chunk of their declines in recent days.”

Yields fell, with the 10-year US Treasury yield (US10Y) down 6 basis points to 3.58%, while the 2-year yield (US2Y) was down 5 basis points to 4.17%.

On today’s economic calendar are producer price inflation data, retail sales figures and MBA mortgage applications.