Contracts for the S&P 500 were reduced and added to last week’s losses. Nasdaq futures fell as tech stocks came under renewed pressure. Bond yields rose and the yield on the 10-year benchmark rose more than 2.7% to reach its highest level since January 2019. Inflation concerns, rising commodity prices amid Russia’s war in Ukraine, and the Federal Reserve’s monetary policy stance have remained in the spotlight. On Tuesday, traders will receive the latest Consumer Price Index from the Bureau of Labor Statistics, which is expected to show a staggering 8.4% year-on-year increase for the biggest jump since 1982. And that comes as its officials The Fed is talking more and more about higher-than-average interest rate hikes of 50 basis points this year to help lower prices. Last week, the minutes of the Fed meeting in March also showed that the central bank was preparing to begin withdrawing assets from its $ 9 trillion balance sheet, in a further move that removes financial market support and moves away from policies of the pandemic era. “If we look at recent cycles that are comparable, I think in 2018, 2019, the Fed raised interest rates and depleted its balance sheet. That should sound very familiar,” Seth Carpenter, Morgan’s global chief economist, told Yahoo. Stanley. Financially on Friday. “But at the end of 2018, the risk markets started to crack and the Fed reversed the course very quickly.” “The main difference now between these two episodes is that they are trying to reduce inflation. They are not trying to stop it from rising,” he added. “And that means they are trying to slow the US economy. They are trying to slow growth so much that inflationary pressures are falling but not so much that they are leading us into recession. And that is difficult.” The story goes on Meanwhile, the start of the last quarterly corporate profit season this week will help show how individual companies have coped with inflationary pressures and the spectrum of slowing economic growth. As of Friday, Wall Street analysts had expected S&P 500 earnings to rise 4.5 percent for the first quarter from a year earlier, according to FactSet. If done, that would mean the slowest pace since the fourth quarter of 2020. “Guidance and management commentary will be particularly important sources of information this quarter, given the uncertainty about future earnings,” David Kostin, Goldman Sachs’s chief equities strategist at US, wrote in a note Monday. “According to previous quarters, guidance has recently been a key factor in diversifying stock performance.” –
7:13 a.m. ET: Twitter shares fall after Musk’s decision not to join board
Shares of Twitter (TWTR) fell on Monday morning, giving back some of last week’s earnings after Tesla CEO Elon Musk chose not to join the social media company’s board after gaining a share above of 9%. “Elon’s appointment to the board was due to take effect on 9/4, but Elon announced the same morning that he would no longer be a member of the board. I think this is for the best,” said his chief executive. Twitter, Parag Agrawal, tweeted on Monday. “We have and will always appreciate the contribution of our shareholders whether they are on our board or not. Elon is our largest shareholder and we will remain open to his contribution.” “There will be distractions ahead, but our goals and priorities remain unchanged,” Agrawal added. “The decisions we make and how we execute are in our hands, no one else’s.” –
7:07 a.m. ET Monday: Shares futures move lower
This is where the markets traded on Monday morning before the opening bell rang:
S&P 500 Futures (ES = F): -15 points (-0.33%) at 4,468.50 Dow futures (YM = F): -24 points (-0.07%) at 34,589.00 Nasdaq Futures (NQ = F): -106.5 points (-0.74%) at 14,220.50 crude (CL = F): $ -2.49 (-2.53%) at $ 95.77 per barrel Gold (GC = F): + $ 16.00 (+ 0.82%) at $ 1,961.60 per ounce 10-year Treasury (^ TNX): +4.2 bps for a yield of 2.757%
NEW YORK, NY – MARCH 30: Traders work on the floor of the New York Stock Exchange on March 30, 2022 in New York City. US stocks opened lower after the rally for the start of the week. (Photo by Michael M. Santiago / Getty Images) – Emily McCormick is a reporter for Yahoo Finance. Follow her on Twitter. Read the latest financial and business news from Yahoo Finance Follow Yahoo Finance on Twitter, Instagram, YouTube, Facebook, Flipboard and LinkedIn
