Stock Groups

5 things to know before the stock market opens Monday, May 23

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These are the top news, trends, and analyses that traders need in order to get started with trading.

1. S&P 500 set to open higher after narrowly avoiding a bear market close

Traders at the NYSE May 20, 2022

Source: NYSE

Dow futuresThe Monday rally saw a 350 point increase in the stock market 30-stock averageThe first eight-week streak of losses since 1923 has ended. The S&P 500The Nasdaq posted seven straight losing weeks.

  • The S&P 500 on Friday dipped into bear market territory. The broad market index recovered from some serious losses with a remarkable rally in the late session. actually finished higherAvoiding a closing of 20% or more below the prior high.
  • Friday’s Nasdaq decline was slight, with the closing of a 30% drop from its previous high.
  • Friday’s Dow Jones Industrial Average was slightly higher, but it still fell 15% below its peak.
  • The Dow and the S&P 500 last reached all-time highs in January. In November, the Nasdaq reached its most recent all time high.

2. As traders await this week’s Fed Minutes, bond yields rise as they wait.

The bond prices fell in the last quarter yields moved higherStocks gained in the premarket Monday This is the 10-year Treasury yieldIt was trading at 2.8% below the psychological threshold of 3% which was broken earlier in the month for the first-time since late 2018. Since late 2018, it’s traded between 2.8% and 3.3% depending on the level of concern. Federal ReserveSlowing down the economy by increasing interest rates and reducing balance sheets won’t suffice to control inflation.

  • On Wednesday, the Fed will release the minutes of its last policy meeting, which saw a rate increase of 50 basis points, twice the amount seen in March. The market anticipates that there will be rate hikes at every Fed meeting this year.

3. Biden states that he will defend Taiwan militarily in the event of an attack by China

Biden denies that Taiwan can ever be taken with force.

Pool | Getty Images News | Getty Images

President Joe BidenHe said Monday that he was going to be willing to use military forceThe democratic and self-governing island of Taiwan expressed gratitude for Biden’s efforts to defend Taiwan. However, China was harsh in its criticism. Biden stated that he didn’t anticipate China attacking Taiwan, despite the fact that China has increased its military provocations in recent years. The U.S. has traditionally avoided making such explicit security guarantees to Taiwan — and a White House official later walked backBiden claimed that the comments did not indicate a shift in policy.

  • Biden indicated that he was considering lifting tariffs placed on Chinese imports by Donald Trump’s predecessor. Biden spoke out about tariffs shortly after Treasury Secretary Janet YellenAccording to some, such an action might be able to help reduce rampant inflation in the U.S.

4. The president of Ukraine demands that Russia be subject to’maximum sanctions’ in order to stop it from becoming a war zone

Volodymyr Zelenskyy, President of Ukraine, addresses the World Economic Forum via videoconference in Davos (Switzerland), May 23, 2022.

Anadolu Agency | Anadolu Agency | Getty Images

When Russia illegally annexed Crimea in 2014, the international community could have helped Ukraine better. said MondayIn a video address given to the World Economic Forum in Davos. Zelenskyy demanded that Russia be subject to the maximum sanctions for unprovoked actions. war in Ukraine.

  • According to Zelenskyy, Russia’s increasing economic sanctions against Moscow will allow other aggressors to “clearly understand the immediate consequences of their actions.” Davos participants were told by him that Russia is at “a turning point” and the majority of them will resist Russia “brute force.”

5. Pfizer states that the three Covid shots given to children younger than 5 years are 80% effective in fighting omicron.

Skippack Pharmacy in Schwenksville is pictured with empty vials of Pfizer BioNTech coronavirus diseases (COVID-19), children’s vaccines. 

Hannah Beier | Reuters

PfizerAnd BioNTech‘s three-dose CovidThe vaccine that was given to children aged 6 months through 5 years had an 80% success rate in preventing illnesses during the Omicron Wave. according to clinical trial resultsTuesday release. The third dose of vaccine produced a robust immune response and was easily tolerated by children in the study. According to the companies, most side effects are mild or moderate.

  • Pfizer and Food and Drug Administration initially sought fast track authorization for the two first doses of February. Pfizer requested data delay to allow Pfizer to review the third dose of its authorization after it was determined that the shots had been effective only by 30%-40%.

— CNBC’s Sam Meredith, Holly EllyattAnd Spencer KimballAs well as The Associated Press, this report was contributed by them.

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