5 things to know before the stock market opens on Monday, June 13
Here are the most important news, trends and analysis investors need to start their trading day:
1. Futures plunge, with S&P 500 poised to fall back into bear market
Traders work on the floor of the New York Stock Exchange (NYSE) on June 10, 2022 in New York City.
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US stock futures sank on Monday after its worst week on Wall Street since January. Bond yields jumped as investors braced for the Federal Reserve to raise interest rates later this week following hotter-than-expected consumer inflation data on Friday. The Dow Jones Industrial Average is set to open 600 points down, or 2%, on Monday, sinking deeper into a correction. The S&P 500 and Nasdaq looks set to open 2.5% and 3% off respectively with Watch to enter bear market territory again and test this year’s low of 3,810.32 last month. Nasdaq has been mired in a bear market since March.
2. Soaring bond yields plunge stocks as recession fears grow
The 2 year Treasury yield on monday hit it highest level since 2007, trading around 3.2%. At one point, the 2-year yield briefly inverted and was above the 10-year yield for the first time since April. The so-called yield-curve inversion is considered a indicator of a recession. The 10-year standard yield then increased to 3.26%. The 5 years profit about 3.4% higher than 10 years and 30 years at about 2.28%. Short-term yields have been more volatile over the past few days due to their greater sensitivity to Fed rate hikes.
3. Fed expected to raise interest rates by 0.5% this week, but markets want more
Fed will hold its June meeting on Tuesday and Wednesday, with an expected rate hike of 0.5%. Anything more than that would come as a surprise, but there is confidence in the market that central banks will have to be more aggressive to quell inflation. The Fed is in a tough spot, trying to cool things down with tighter monetary policy while trying not to push 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 hot consumer inflation report into context. .
4. Bitcoin Drops Below $24,000 As Entire Crypto Market Sells
Bitcoin 14% off, to under $24,000 on monday, hit it lowest level since December 2020, as investors sold cryptocurrencies in a broader sell-off in risky assets. Also raising concerns, a crypto lending company called Celsius has halted withdrawals for its customers. Over the weekend and into Monday morning, the value of the entire crypto market fell below $1 trillion for the first time since February 2021, according to data from CoinMarketCap. The crypto market has also been buoyant since mid-May when the so-called algorithmic stablecoin terraUSD and its sister coin luna collapsed.
5. The first electric vehicle manufacturer after SPAC declares bankruptcy
Start EV The ultimate electric solution say at the end of sunday it plan to file for bankruptcy protection less than a year after it was listed on the stock exchange through a merger with a special purpose acquisition company. ELMS’ public offering, in late June 2021, comes amid a wave of SPAC deals that bring electric vehicle makers to the public. The company is the first of the post-SPAC electric vehicle manufacturers to announce 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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