5 things you should know before Monday’s opening of the stock market today
Futures drop, and the S&P 500 is about to enter a bear market again.
After Wall Street’s worst week since January, U.S. stock futures fell on Monday. Bond yields went up because investors expected the Federal Reserve to raise interest rates later this week after data on consumer inflation came in Stock Market Today hotter than expected on Friday. On Monday, the Dow Jones Industrial Average is expected to open down 500 points, or 1.7%. This is a sign that the correction is getting worse. The S&P 500 and the Nasdaq look like they will open down 2% and 2.7%, respectively. The S&P 500 is on track to go back into a bear market and test last month’s low of 3,810.32 for the year. Since March, the Nasdaq has been stuck in a bear market.
Stocks fall as fears of a recession grow and bond yields go up.
On Monday, the yield on a 2-year Treasury note hit its highest level since 2007. It was around 3.16 percent. At one point, the yield on the 2-year bond went below the yield on the 10-year bond for the first time since April. A “yield curve inversion,” as it is called, is seen as a sign of a recession. Later, the yield on the benchmark 10-year bond went up to 3.26 percent. The 5-year yield was about 3.4%, which was higher than the 10-year yield of about 3.3% and the 30-year yield of about 3.3%. Because short-term yields are more sensitive to Fed rate hikes, they have changed more in the last few days.
Markets expect the Fed to raise interest rates by 0.5% this week, but they want more.
The Fed will have its June meeting Stock Market Today on Tuesday and Wednesday. A rate increase of 0.5% is expected. Anything more than that would be unexpected, but the markets have been thinking that central bankers will have to get even tougher to stop inflation. The Fed is in a tough spot Stock Market Today because it is trying to cool things down by making monetary policy stricter while also trying to keep the economy from falling into a recession. Wall Street will look to Tuesday’s release of the producer price index and Wednesday’s retail sales data to put last week’s hot consumer inflation report in context before the Fed makes its policy decision.
Bitcoin falls below $24,000 as the whole cryptocurrency market drops.
Bitcoin fell 14 percent on Monday, reaching its lowest level since December 2020, which was below $24,000. This happened as investors dumped crypto in a wider sell-off of risky assets. A company called Celsius that lends out cryptocurrency has stopped its customers from getting their money. According to data from CoinMarketCap, the total value of the cryptocurrency market Stock Market Today fell below $1 trillion over the weekend and into Monday morning. This was the first time since February 2021 that the market value fell below $1 trillion. Since the collapse of the so-called algorithmic stablecoin terraUSD and its sister coin luna in mid-May, the crypto market has also been on edge Stock Market Today.
The first company to make electric cars after the SPAC goes bankrupt.
EV start-up Stock Market Today Electric Last Mile Solutions said late Sunday that it plans to file for Chapter 7 bankruptcy protection less than a year after going public through a special purpose acquisition company merger. At the end of June 2021, ELMS went public. This was part of a wave of SPAC deals that took EV makers public. The company is the first one to say it will go bankrupt among those that make electric cars after SPAC. Chairman and founder Jason Luo and then-CEO Jim Taylor left the company in February after an internal investigation showed that the company’s financial statements from the past were not accurate.