5 things to know before the stock market opens Tuesday
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These are the top news, trends, and analyses that traders need in order to get started with trading.
1. Stock futures are flat while investors await the key inflation report
Traders are seen working on the New York Stock Exchange’s floor (NYSE), in New York, 29 March 2022.
Brendan McDermid | Reuters
Stock futures were little changedWall Street on Tuesday morning anticipated a key inflation report. The yield on the 10-year Treasury note was at its highest level in three years, causing all the major U.S. equity indices to pull back. It also intensified worries about an economic slowdown. These were the results Dow Jones Industrial AverageOn Monday, the Dow dropped 413 points or 1.19% while the S&P 500The decline was 1.69% The Nasdaq Composite — home to many growth stocks that are more sensitive to higher interest rates — dropped 2.18%.
Tech-friendly Nasdaq has fallen 5.7% over the past month. The S&P 500 has dropped 2.6%, while the blue chip Dow has fallen roughly 1.1%.
2. The 10-year Treasury yield has reached its highest point since December 2018,
The U.S. Treasury 10-year yield was at its highest point since December 2018, trading at 2.82% on Tuesday morning before slipping slightly to 2.798%. This move in bond yields is ahead of the release by the Labor Department at 8:30 AM on the March consumer price index. ET on Tuesday.
The Treasury yields which are inversely related to the prices have seen a rapid rise in recent weeks. On March 7, the U.S. Treasury yield on 10-year bonds was just 1.7%. As the Federal Reserve tightens its policy, the yields have risen as the bond markets prepare for increased aggressive policy. On March 3, the U.S. central banks raised interest rates by more than 3 years. An even greater increase was expected on its May meeting.
3. CPI for March to display the highest level of inflation since 1981
On March 10, 2022, a person shop for groceries in Lincoln Market in Prospect Lefferts Garden in Brooklyn, New York City.
Getty Images| Getty Images
The March consumer price index is projected to show an 8.4% increase on an annual basisAccording to Dow Jones estimates, it is approximately. It would mark the highest year-overyear rise since December 1981. Economists predict a 1.1% monthly increase. Consumer prices rose 0.8% in February compared to January and 7.9% over 12 months.
CPI is a broad-based index that tracks goods and services. It has been at its highest levels for many months. To reduce this historically high inflation, the Fed is tightening its policy.
Inflation readings for March are likely to reflect higher rent and food costs. The report will focus on Tuesday’s energy price. Major increases are expected due to an oil price spike that occurred in March and was a result of the Russia-Ukraine conflict.
4. U.S. Monitoring claims regarding possible Russian Chemical Attack in Ukraine
John Kirby, Pentagon Press Secretary, speaks at a briefing held April 11th 2022 in Arlington (Virginia).
Getty Images| Getty Images
U.S. surveillance of unconfirmed reporting on a potential Russian chemical weapons attack in the Ukrainian port city of Mariupol, Pentagon press secretary John Kirby said Monday night. Kirby acknowledged that American officials have not yet verified these accounts, but he called them “deeply troubling.” Kirby stated in a statement that the unconfirmed reports are also “reflective” of concern about Russia’s ability to use various riot control agents in Ukraine, such as tear gas and chemical agents.
British Foreign Secretary Liz Truss said the U.K. is working to verify details of the possible attack, which originally was a Telegram message posted by an ultra-nationalist part of the Ukrainian National Guard called the Azov Regiment. According to the message, Russian forces had used “a poisonous compound of unknown origin.”
5. Shanghai’s week-long lockdown is lifted for certain residents
Shanghai was the hub of many international businesses and this week saw a lockdown in place in both parts. This is because municipal officials sought to stop an epidemic in China’s most severe Covid wave in over two years.
Hector Retamal | Afp | Getty Images
Shanghai Covid Lockdowns eased for some residents TuesdayIt was more than two months after strict protocols for public health were in place. coronavirusInfections rose. According to local media, nearly five million people reside in Shanghai’s parts where there are no cases of disease. These residents can leave their homes. Reuters reportedSome confusion arose about how they could freely move.
Shanghai, China’s biggest city is home to approximately 26 million people. Concerns about the humanitarian and economic impactThe recent increase in the number of lockdowns was a result. The U.S. State Department sent Monday’s message to all Shanghai non-emergency officials and their loved ones. to leave the city.
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