5 things to know before the stock market opens Monday
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Investors need the following news, analysis and trends to help them start trading:
1. To start the week, stock futures were down
On March 8, 2022, people walk Wall Street in New York City.
Spencer Platt | Getty Images
U.S. stock prices were slightly lower on Monday morning, as Wall Street looks for a rebound from its losing week. Technology-focused Nasdaq CompositeLast week saw one of the largest declines, a drop of nearly 3.9%. This was due to investors preparing for more stringent Federal Reserve policy tightening. The S&P 500 slid 1.27%, ending a three-week winning streak, while the Dow Jones Industrial Average dropped 0.28%. Now, the 30-stock Dow is down for two consecutive weeks.
Two key pieces will be available to investors during the holiday-shortened trading week. The March consumer price index is due to be out Tuesday. A day later, it will release the producer price indicator. A number of major banks will be leading earnings season. JPMorganIt is expected that it will release results Wednesday with other companies including Goldman Sachs following suit on Thursday.
2. The yields on bonds continue to climb; the oil price is falling
Traders at the NYSE floor, March 25, 2022.
Source: NYSE
Monday’s bond yields were higher with the 10-year Treasury yield rising 4 basis points, to a peak of 2.76%. Inverting the 30-year and 5-year rates in March was a first since 2006. This raised concerns about a recession and pushed them higher. Investors are preparing for Fed policies that will be more hawkish. Bond yields, which are inversely related to the prices, have seen a surge in recent months.
On Monday oil prices dropped by over 4%, putting U.S. benchmark West Texas Intermediate crude oil futures at $94 per barrel. International benchmark Brent fell 4.1% to $98.50 per barrel. Since the announcement by the U.S., other countries to reduce Russian oil supply and release their strategic reserves of oil to counter it, crude has dropped for two weeks. Oil prices have also been affected by covid lockdowns in China that can reduce demand.
3. Elon Musk has resigned from the Twitter board
Elon Musk gestures during his speech at a SpaceX press conference near Boca Chica Village, South Texas, February 10, 2022.
Jim Watson | AFP | Getty Images
Twitter shares fell Monday in premarket tradingParag Agrawal (CEO) announced Sunday evening via Twitter that Elon Musk had been hired no longer joining the social network’s board of directors. Last week’s securities filings revealed this. MuskCEO, of TeslaSpaceX, a privately-owned rocket company SpaceX had been named Twitter’s biggest individual shareholder. Musk’s appointment to the board of Twitter was planned. There were rumors about Musk’s influence on the company’s future.
Agrawal declined to say whether Musk provided specific reasons why he would not be a Twitter director. Agrawal warned that there would be “distractions”, but Musk said Twitter would still “remain open” for Musk’s suggestions.
4. China’s inflation surpasses all estimates. Guangzhou crackdowns on Covid
Guangzhou’s 11 district began mass Covid testing again late last week. Meanwhile, elementary and middle schools switched to online education as of Monday.
Getty Images| Future Publishing | Getty Images
Inflation in China came in hotter than expected for the month of MarchAs the second-largest nation in the world, the country is suffering from the most severe Covid Infections since 2005. coronavirus pandemicIn early 2020. On Monday, major Chinese stock indexes were down with the Shenzhen componentAnd Shanghai compositeThe difference between 2.6% and 3.7% was almost 37%.
Tighter health restrictions are being imposed in Guangzhou, which is the capital of manufacturing-heavy Guangdong province. Residents are prohibited from leaving Guangzhou except for a “definite necessity” and elementary and middle school classes will be moved to online learning. The Associated Press reportedTo do this, they must submit a negative Covid result within 48 hours.
However, Covid lockdowns are not permitted in Shanghai may be easing in certain residential areasAccording to Reuters, there have been no new Covid cases in the past two weeks. China’s largest city has seen record numbers of Covid cases, however, some local residents are struggling to keep up with the strict restrictions. obtaining enough food and medicine.
5. Zelenskyy solicits military aid from South Korea and states that the ‘war on terror is still not over.
Zelenskyy informs South Korean legislators that nearly 300 hospitals in Ukraine have been demolished.
Chung Sung-jun | AFP | Getty Images
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