Sam Boughedda

Investing.com – Stocks closed higher in the U.S. on Monday after a late-afternoon surge in tech helped lift all three indexes.

It was a change from earlier in the day when stocks weren’t showing any momentum and oil prices plunged. Russia’s war on Ukraine continued though there were discussions about peace talks sometime this week.

Tesla was one of the catalysts, having announced its intention to divide shares if shareholders approved.

It’s a data-heavy week coming up, with fresh information on the state of the housing and job markets, including the much-watched monthly jobs report due out Friday. These data are coming at a time when the Federal Reserve is weighing whether or not to increase interest rates in May’s meeting.

The focus on the Fed’s action has weighed on financials and pushed the benchmark 10-year Treasury to above 2.5%. Reuters reports that the U.S. Treasury yield curve, the difference between the five- and 30-year Treasury yields, was inverted for the first-time since 2006. This indicates rising concern about economic growth.

China put Shanghai under lockdown after the spread of Covid-19 infection. 

These are the three factors that will impact markets tomorrow.

1. Energy stocks

New concerns about China’s demand for energy stock have caused shares to plummet. Shanghai started a lockdown in two stages to stop the spread of coronavirus.

The first phase is for five days, starting Monday, and is limited to Shanghai’s Pudong financial district and nearby neighborhoods. Second stage: A five-day lockdown that targets Shanghai’s downtown. It will begin Friday.

Oil majors like BP and ONG should feel the pressure. Exxon Mobil Corp. (NYSE:), Occidental Petroleum (NYSE:), Chevron Corp. BP PLC ADR (NYSE)

2. Tesla stock split

Tesla Inc (NASDAQ 🙂 is being closely monitored as it plans to increase its share count in order to facilitate a stock-split. In splitting shares, it joins Alphabet (NASDAQ) and Amazon (NASDAQ) as big corporations.

3. Travel stocks

Carnival shares (NYSE:) rose sharply, as Norwegian and Norwegian cruise share prices increased despite pandemic locks returning to center after Shanghai implemented its most severe lockdown in the past two years in response to an increase in cases. Analysts are watching for signs that the industry is experiencing a spring thaw.

–This report was contributed by Reuters