5 things to know before the stock market opens on Monday

Here are the top news, trends and analysis that investors need to start their trading day:

1. Stock futures drop at the start of the week

People walk along Wall Street near the New York Stock Exchange on March 08, 2022 in New York City.

Spencer Platt | Getty Images

US stock futures fell slightly on Monday morning as Wall Street looks to bounce off a losing week. Technology Focus Nasdaq Composite The biggest drop was seen last week, dropping nearly 3.9% as investors brace for sharper policy 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 30-share index has fallen two weeks in a row.

Investors will get two key pieces of inflation data during the abbreviated trading week over the holiday. On Tuesday, the CPI for March is due to be released, followed by the Producer Price Index the following day. The latest earnings season is about to start led by the major banks. JP Morgan The results are due to be published on Wednesday, with others to follow, including Goldman Sachs, on Thursday.

2. Bond yields keep rising. oil slices

Traders on the floor of the New York Stock Exchange, March 25, 2022.

Source: NYSE

The index of bond yields rose Monday morning, with the 10-year Treasury yield rising 4 basis points to 2.76% higher. The 5-year and 30-year rates remain reversed, which occurred in late March for the first time since 2006 and raised fears of a possible recession. Bond yields, which move inversely with prices, have risen over the past month as investors brace for the Fed’s tighter policy.

Oil prices fell more than 4% on Monday, sending US benchmark West Texas Intermediate (WTI) crude futures to below $94 a barrel. The international standard Brent crude fell by about 4.1 percent to about $ 98.50 a barrel. Crude oil has fallen over the past two weeks, after the United States and other countries announced plans to release oil from their strategic reserves in a bid to make up for lost Russian supplies. The Covid lockdown in China, which could dampen demand, has also affected oil prices.

3. Elon Musk no longer joins the Twitter board

Elon Musk points out during a press conference at SpaceX’s Starbase facility near the village of Boca Chica in southern Texas on February 10, 2022.

Jim Watson | Agence France-Presse | Getty Images

Twitter stock fell Monday in pre-market trading After CEO Parag Agrawal announced in a tweet Sunday night that Elon Musk is He is no longer on the Social Network’s board of directors. Securities filings issued last week revealed this muskCEO of Tesla and private rocket company SpaceX, has become the largest single contributor to Twitter. Plans to appoint Musk to Twitter’s board of directors followed, prompting speculation about how the world’s richest person and frequent tweeter might influence the company.

Agrawal did not say whether Musk had given specific reasons for choosing not to become a Twitter admin. While Agrawal warned of “distractions ahead,” the CEO said Twitter would “remain open” to what Musk has to offer.

4. Inflation in China tops estimates. The COVID campaign has arrived in Guangzhou

All 11 provinces in Guangzhou began another round of mass Covid tests late last week, while primary and middle schools switched to online learning from Monday.

Costphoto | Future Publishing | Getty Images

Inflation came in China March is much hotter than expectedas the world’s second largest economy is experiencing the worst wave of Covid infections since the beginning Corona virus pandemic In early 2020. China’s major stock indexes fell on Monday, with Shenzhen Component And Shanghai boat It decreased by 3.7% and 2.6%, respectively.

Stricter health restrictions are being imposed in Guangzhou, the capital of the heavily industrialized Guangdong Province. The city is moving primary and middle school classes to online teaching for at least a week, residents are not allowed to leave Guangzhou without “specific need”, The Associated Press reported; They must also test negative for Covid within 48 hours to do so.

The Covid lockdown in Shanghai, however, May be easing in some residential areas Without new cases within two weeks, according to Reuters. China’s most populous city is seeing a record number of new Covid infections, but weeks of strict restrictions have left some residents suffering Get enough food and medicine.

5. Zelenskyy asks for military help from South Korea, says “the war is not over yet”

Zelensky told South Korean lawmakers that nearly 300 hospitals had been destroyed in Ukraine.

Chung Seung Joon | Agence France-Presse | Getty Images

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