Here are the key news, trends and analyzes that investors need to start their trading day:
Stock futures are down to start the week
People walk along Wall Street near the New York Stock Exchange on March 8, 2022 in New York City.
Spencer Platt | Getty Images
U.S. stock futures were slightly lower Monday morning as Wall Street looks set to recover from a losing week. The technology-focused Nasdaq Composite saw the biggest declines last week, falling nearly 3.9% as investors prepared for more aggressive tightening from the Federal Reserve. The S&P 500 fell 1.27%, ending a three-week winning streak, while the Dow Jones Industrial Average fell 0.28%. The Dow with 30 shares has now fallen for two weeks in a row.
Investors will receive two key inflation data during this shortened trading week. The consumer price index for March is scheduled to be released on Tuesday, followed by the producer price index a day later. The most recent earnings season is also about to begin, led by the big banks. JPMorgan is set to release results on Wednesday, with others, including Goldman Sachs, after Thursday.
2. Bond yields continue to rise; oil glass
Trading on the floor of the NYSE, March 25, 2022.
The bond yields tick higher on Monday morning, with the 10-year government yield rising 4 basis points to a top 2.76%. The 5-year and 30-year rates remain reversed, which in late March happened for the first time since 2006 and increased fears of a possible recession. Bond yields, which are reversing relative to prices, have risen over the past month as investors prepare for a more hawkish Fed policy.
Oil prices fell more than 4% on Monday, sending US benchmark West Texas Intermediate crude oil futures below $ 94 per barrel. barrel. The international benchmark Brent fell about 4.1% to about $ 98.50 per share. barrel. Crude oil has fallen in the last two weeks after the United States and other countries announced plans to release oil from their strategic reserves in an attempt to offset lost Russian supplies. Covid lockdowns in China, which could weaken demand, have also weighed on oil prices.
3. Elon Musk no longer joins the Twitter board
Elon Musk gestures as he speaks during a news conference at SpaceX’s Starbase facility near Boca Chica Village in South Texas on February 10, 2022.
Jim Watson | AFP | Getty Images
Twitter shares fell in pre-market trading on Monday after CEO Parag Agrawal announced in a tweet Sunday night that Elon Musk is no longer joining the social networking board. Securities registrations released last week revealed that Musk, CEO of Tesla and the privately owned rocket company SpaceX, had become Twitter’s largest individual shareholder. Plans to appoint Musk to Twitter’s board followed, sparking speculation about how the world’s richest person and frequent tweets would affect the company.
Agrawal did not say whether Musk offered specific reasons to opt out of becoming a Twitter director. While Agrawal warned of “distractions ahead”, the CEO said Twitter would “remain open” to Musk’s input.
4. China’s inflation tops estimates; Covid attack reaches Guangzhou
All 11 districts of the city of Guangzhou began another round of mass testing of Covid late last week, while elementary and middle schools switched to online learning from Monday.
Costfoto | Future Publishing | Getty Images
Inflation in China was warmer than expected for March as the world’s second largest economy experiences its worst wave of Covid infections since the start of the coronavirus pandemic in early 2020. Major Chinese stock indices fell on Monday with Shenzhen component and Shanghai composite falling nearly 3.7% and 2.6% respectively.
Stricter health restrictions are being introduced in Guangzhou, the capital of Guangdong province. The city is moving elementary and middle school classes to online education for at least a week, and residents are not allowed to leave Guangzhou without a “definite need,” the Associated Press reported; they must also show a negative Covid test within 48 hours to do so.
However, covid lockdowns in Shanghai could ease into certain residential areas without new cases during a two-week window, according to Reuters. China’s most populous city is experiencing record new Covid infections, but strict, week-long restrictions have caused some residents to struggle to get enough food and medicine.
5. Zelenskyy asks South Korea for military aid, saying ‘war is far from over’
Zelenskyy tells South Korean lawmakers that nearly 300 hospitals have been destroyed in Ukraine.
Chung Sung-jun | AFP | Getty Images