Here is the most important news, trends and analysis that investors need to start their trading day:
1. Futures decline, with the S&P 500 poised to fall back into a bear market
Traders work on the floor of the New York Stock Exchange (NYSE) on June 10, 2022 in New York City.
Spencer Platt | Getty Images
US stock futures Wall Street sank on Monday after its worst week since January. Bond yields soared as investors called for the Federal Reserve to raise interest rates later this week after higher-than-expected consumer inflation data on Friday. Dow Jones Industrial Average It is set to open down 500 points, or 1.7%, on Monday, and is sinking into a correction. S&P 500 And this Nasdaq With the former set to open down 2% and 2.7% respectively Tracking to re-enter bear market territory And last month test this year’s minimum of 3,810.32. The Nasdaq has been mired in a bear market since March.
2. Rising Bond Yields Slam Stocks as Concerns About a Recession Raise
2 Year Treasury Yield its hits on monday highest level since 2007, Is trading around 3.16%. At one point, the 2-year yield briefly reversed and moved above its 10-year counterpart for the first time since April. A so-called yield curve inversion is seen as a bearish indicator. Benchmark 10-Year Yield The latter came in at 3.26%. 5 year yield was higher than the 10-year at approximately 3.4% and 30 years old at around 3.3%. Their high sensitivity to Fed rate hikes has led to a higher rise in short-term yields over the past few days.
3. The Fed Expects Rates To Increase By 0.5% This Week, But Markets Want More
fed is set to hold its June meeting on Tuesday and Wednesday, which is expected to increase by 0.5%. Anything more would be surprising, but there has been a perception in the markets that central bankers will have to be even more aggressive to contain inflation. The Fed is in a difficult position, trying to cool things down with tighter monetary policy while trying not to put the economy into recession. Ahead of the Fed’s policy decision, Wall Street will look to Tuesday’s producer price index release and Wednesday’s retail sales data to put last week’s heated consumer inflation report in context.
4. Bitcoin Drops Below $24,000 As Entire Crypto Market Sells
Bitcoin dropped 14%, to less than $24,000 on monday, its hitting Lowest level since December 2020, as investors dump crypto into riskier assets in a widespread sell-off. Furthermore, adding to the fears, a crypto lending company named Celsius has stopped withdrawals for its customers. Over the weekend and Monday morning, the value of the entire cryptocurrency market fell below $1 trillion for the first time since February 2021, according to data from CoinMarketCap. The crypto market has also been on edge since mid-May when the so-called algorithmic stablecoin TeraUSD and its sister coin Luna collapsed.
5. The first electric vehicle maker since SPAC to declare bankruptcy
EV start-up Electric Last Mile Solutions said late sunday night plan to file for bankruptcy protection less than a year after it went public through a merger with a special purpose acquisition company. The ELMS public offering, in late June 2021, came amid a wave of SPAC deals that took EV manufacturers public. The company is the first of post-SPAC electric vehicle manufacturers to say it will declare bankruptcy. In February, chairman and founder Jason Luo and then-CEO Jim Taylor left after an internal investigation found the company’s past financial statements to be unreliable.
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