1. Futures contracts stabilize as investors await core inflation reporting
Traders work on the New York Stock Exchange (NYSE) in New York, March 29, 2022. Brendan McDermid Reuters Futures traded slightly higher on Tuesday morning as Wall Street awaited a key inflation report. A day earlier, all three major US stock indexes fell as the 10-year bond yield hit a three-year high and heightened concerns about a slowdown. The Dow Jones Industrial Average fell 413 points or 1.19% on Monday, while the S&P 500 fell 1.69%. The Nasdaq Composite – the home of many emerging stocks that are more sensitive to higher interest rates – fell 2.18%. The Nasdaq technology heavyweight has fallen about 5.7% a month to date. The S&P 500 fell 2.6%, while the blue chip Dow fell about 1.1%.
2. The yield of the 10-year bond reaches the highest level since December 2018
The yield on the 10-year US bond traded at its highest point since December 2018 on Tuesday morning, reaching 2.82% before falling slightly to 2.798%. The movement in bond yields comes in view of the March consumer price index report, which the Ministry of Labor is going to publish at 8:30 a.m. ET on Tuesday. Bond yields, which are moving in the opposite direction of prices, have risen sharply in recent weeks. As of March 7, the yield on the 10-year US bond was below 1.7%. However, yields have risen as the bond market prepares for a more aggressive policy by the Federal Reserve. In March, the US Federal Reserve raised interest rates for the first time in more than three years and is expected to raise even more at its meeting in May.
3. The CPI in March is expected to show the highest inflation since 1981
A person is shopping for groceries at Lincoln Market on March 10, 2022 in the Prospect Lefferts Garden neighborhood of Brooklyn, New York. Michael M. Santiago | Getty Images The consumer price index for March is projected to grow 8.4% year-on-year, according to Dow Jones estimates. This would be the biggest annual jump since December 1981. Economists also forecast a monthly rise of 1.1%. In February, consumer prices rose 0.8% on a monthly basis and 7.9% in the last 12 months. The CPI, which monitors a wide range of goods and services, has been at its hottest levels for months. The Fed is tightening its policy in an effort to curb this historically high inflation rate. Higher food and rental costs are expected to make a significant contribution to March inflation. However, energy prices will be given special attention in Tuesday’s report. They are expected to increase significantly due to the jump in oil prices in early March, which was associated with the Russia-Ukraine war.
4. US surveillance allegations of possible Russian chemical attack on Ukraine
Pentagon Spokesman John Kirby speaks during a Pentagon news briefing on April 11, 2022 in Arlington, Virginia. Alex Wong | Getty Images The United States is monitoring unconfirmed reports of a possible Russian chemical weapons attack in the Ukrainian port city of Mariupol, Pentagon spokesman John Kirby said Monday night. While Kirby said the United States had not verified the accounts, he said it was “deeply worrying.” The unconfirmed reports also “reflect our concerns about Russia’s ability to use a variety of riot control agents, including tear gas canisters, in Ukraine,” Kirby said in a statement. British Foreign Secretary Liz Truss said the UK was working to verify the details of the possible attack, which was originally a telegram sent by a supranationalist section of the Ukrainian National Guard called the Azov Constitution. The message claimed that Russian forces had used “a poisonous substance of unknown origin”.
5. Shanghai weekly lockdown facilitates for some residents
The Shanghai metropolis, home to many foreign companies, went into a bilateral lockdown this week as municipal authorities tried to control an outbreak in China’s worst Covid wave in two years. Hector Retamal | Afp | Getty Images Shanghai lockdowns for Covid eased for some residents on Tuesday, more than two weeks after strict public health protocols were introduced as coronavirus infections rose. Local media reported that nearly 5 million people live in areas of Shanghai where restrictions are easing because no new cases have been detected in that area for at least two weeks. While these residents may be fleeing their homes, Reuters reported that there was some confusion about how freely they could move. Shanghai is the largest city in China, home to about 26 million people. Concerns about the humanitarian and economic implications of the severe restrictions have intensified in recent days. On Monday, the State Department told all non-emergency government personnel and their families in Shanghai to leave the city. – Join the CNBC Investing Club now to follow every Jim Cramer stock move. Follow the broader market action as a professional on CNBC Pro.
