Futures Rebound As Hopes Of Imminent Recession Spark "Bad News Is Good News" Reversal Futures Rebound As Hopes Of Imminent Recession Spark "Bad News Is Good News" Reversal In a world where bad news is good news, and where the looming recession means an end to rate hikes and a start to easing, it didn''t take algos long to bid stocks up as treasury yields tumbled after comments by Jerome Powell and dismal PMI data in Europe justified fears that a global downturn is now just a matter of when, not if. After initially sliding more than 1% late on Wednesday, futures rebounded and recovered all losses and were last trading near Wednesday''s session highs, up 0.7% or 27 point to 3,790, while Nasdaq futs were up 0.9% at 11,375 as of 715am ET. 10Y yield initially dumped below 3.10% - near a two week low, after trading at 3.50% one week ago - before bouncing modestly, while the Dollar pushed higher as the euro tumbled after after a series of very poor European PMI prints confirmed that Europe''s runaway inflation is pushing the continent into a stagflationary recession, which in turn sent the yield on German 10-year bonds slumping as much as 21 basis points, poised for the biggest two-day decline since November 2011.