U.S. stock futures dropped on Monday morning, putting the S&P 500 on track to fall back into bear market territory and possibly to a new low for 2022. A jump in short-term rates drove the negative sentiment as investors still reeling from a hotter-than-expected inflation report on Friday braced for the Federal Reserve to raise rates later in the week.
Market Snapshot
At 7:50 a.m. ET, Dow e-minis were down 581 points, or 1.85%, S&P 500 e-minis were down 91 points, or 2.33%, and Nasdaq 100 e-minis were down 350.5 points, or 2.96%.
Pre-Market Movers
Coinbase Global, Inc. — Shares of the cryptocurrency exchange sank more than 14% amid the sharp pullback in the prices of bitcoin and other digital assets over the weekend.
Docusign — The software stock extended its losses from Friday in premarket trading, falling more than 5%. DocuSign fell more than 24% on Friday after the company missed earnings and slashed its guidance. Wolfe Research downgraded the stock to “underperform” from “peer perform” over the weekend.
Amazon.com — Big Tech stocks were down sharply in premarket trading as investors braced for a broad sell-off. Amazon was one of the worst performers among the megacap names, falling nearly 4%.
MicroStrategy — The software stock dropped more than 20% in premarket trading as the price of bitcoin retreated below $24,000. Microstrategy has bet big on bitcoin and held more than 129,000 coins as of the end of March.
Silvergate Capital — The crypto-focused bank saw its stock fall more than 13% in response to the decline in bitcoin and other digital assets. Silvergate’s slide came despite a positive initiation from Wells Fargo.
Tesla Motors — Shares of the electric automaker retreated 4% as the broad sell-off in risk assets outweighed anupgrade from RBC Capital Markets.
Pfizer — The pharmaceutical stock was down about 1%, holding up better than the broader market, after the Food and Drug Administration released its briefing document for a meeting later this week this week about Pfizer’s Covid vaccine for young children. The agency said in its briefing document that no new safety concerns appeared in the data submitted from clinical trials.
Market News
Tesla Motors filed for a 3-for-1 stock split as part of its SEC filings for an upcoming annual meeting. Moreover, Larry Ellison won't stand for re-election to the board, and the company will therefore reduce the board's composition to seven seats.
Blake Lemoine, a Alphabet engineer working in its Responsible AI division, revealed that he believes one of the company's AI projects has achieved sentience. And after reading his conversations with LaMDA (short for Language Model for Dialogue Applications), it's easy to see why.
Global megahit "Squid Game" will return for a second season, Netflix announced on Sunday, offering a few hints about what is to come in the dark Korean drama.
This week, Intel is expected to detail just how it's going to make chips in the near future that are faster, less costly and more reliable from a manufacturing standpoint at the 2022 IEEE Symposium on VLSI Technology and Circuits, which begins on Monday.
More than a dozen former McDonald's restaurants reopened here under a new brand and new ownership, accompanied by a marketing blitz aimed at convincing Russians that the new chain's burgers are as good as the American version.
U.S. Food and Drug Administration staff reviewers on Sunday said Pfizer-BioNTech's COVID-19 vaccines were effective and safe for use in children aged 6 months to 4 years. The FDA reviewers said in briefing documents published on Sunday evening that their evaluation did not reveal any new safety concerns related to the use of the vaccine in young children.
DiDi Global Inc. will start trading on the over-the-counter market (OTC) on Monday, more than two weeks after its shareholders voted to delist the company from the New York Stock Exchange.
Astra Space said that it had a nominal first stage flight, though the upper stage shut down early and it didn't deliver the payloads to orbit, according to a twitter post from the company.