Stocks Fall to Start the Week as Rates Keep Jumping

Tiger Newspress2022-04-11

Stock fell on Monday as interest rates continued to climb on concerns over tighter monetary policy from the Federal Reserve that could slow economic growth.

Futures tied to the S&P 500 fell 0.7%, and Nasdaq 100 futures slid 1.2%. Dow Jones Industrial Average futures dropped 129 points, or nearly 0.4%.

Those moves came as U.S. Treasury yields hit a new 3-year high overnight. On Sunday evening, the 10-year Treasury yield hit 2.7741%, or its highest point since early 2019. It topped 2.76% Monday morning to start the week. Yields move inversely to prices and 1 basis point is equal to 0.01%.

Twitter’s stock price fell in premarket trading Monday after CEO Parag Agrawal revealed that Elon Musk abandoned his plan to join the company’s board. Shares for the social media company dropped more than 8% before recovering some losses. At 7:56 a.m. ET, shares were down 2.4%.

The fight against inflation is likely to be a market driver this week. Investors will get a look at fresh data, with the consumer price index for March due out on Tuesday and the producer price index following on Wednesday.

Cleveland Fed President Loretta Mester told CBS’ “Face the Nation” on Sunday that she still believes the Fed can get inflation under control without causing major damage to the economy.

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Comments

  • robot1234
    2022-04-12
    robot1234
    During yesterday trading, all 3 major indices fell. DJIA fell around 1.2%, S&P 500 around 1.7% and Nasdaq around 2.2%. The bearish mood come as investors await the release of March’s highly anticipated CPI on Tuesday. The data is expected to show an 8.4% annual increase in prices — the highest level since December 1981. The 10-year Treasury yield topped 2.79%, its highest level since January 2019. The Covid-19 pandemic, US-China conflicts and Ukraine crisis will further dampen investors' sentiment. Going forward, can expect more volatility and bearishness
  • Fatfish
    2022-04-12
    Fatfish
    Good to collect some stocks on discounts
  • u0402215
    2022-04-12
    u0402215
    Kurwaaa... 
  • Darkvin1987
    2022-04-12
    Darkvin1987
    It will rebound
  • Sunshine_2
    2022-04-12
    Sunshine_2
    OK
  • Gee1
    2022-04-12
    Gee1
    oh
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