Listed here are a very powerful information, developments and evaluation that buyers want to begin their buying and selling day:
1. S&P 500 set to open larger after narrowly avoiding a bear market shut
Merchants on the NYSE, Might 20, 2022.
- The S&P 500 on Friday dipped into bear market territory. But thanks to an incredible late-session rally from steep losses, the broad market index actually finished higher, avoiding a close of 20% or more below its prior high.
- The Nasdaq fell slightly Friday, inching closed to a 30% decline from its prior high.
- The Dow edged higher Friday, but still off 15% from its prior high.
- The Dow and the S&P 500 last reached all-time highs in January. The Nasdaq’s most recent all-time high was in November.
2. Bond yields move higher as traders wait for this week’s Fed minutes
Bond prices went lower and yields moved higher Monday as stocks made gains in the premarket. The 10-year Treasury yield was trading around 2.8%, under the key psychological level of 3%, which was breached for the first time since late 2018 earlier this month. It’s been back and forth above and below that mark for weeks on concern the Federal Reserve’s gradual approach to slow down the economy with interest rate hikes and balance sheet run-offs won’t be enough to get inflation under control.
- The Fed is set to release on Wednesday the minutes from its latest policy meeting earlier this month, which resulted in a 50 basis point rise in rates, double the increase seen in March. The market expects rate hikes at all of the remaining Fed meetings this year.
3. Biden says he would defend Taiwan militarily if China were to attack
Biden says the idea that Taiwan can be taken by force is “not appropriate.”
Pool | Getty Images News | Getty Images
President Joe Biden on Monday said he’d be willing to use military force to defend Taiwan, prompting gratitude from the democratic, self-ruled island but sharp criticism from China. In Japan, the second stop in his first trip to Asia since taking office, Biden said he doesn’t expect China to attack Taiwan despite stepping up military provocations in recent years. The U.S. has traditionally avoided making such explicit security guarantees to Taiwan — and a White House official later walked back Biden’s feedback, saying they didn’t mirror a coverage shift.
- Biden additionally stated he is contemplating easing tariffs on Chinese language imports, measures put in place by his predecessor Donald Trump. Biden’s feedback on tariffs got here after Treasury Secretary Janet Yellen advised such a transfer may assist ease rampant inflation gripping the U.S. financial system.
4. Ukraine’s president requires ‘most’ sanctions towards Russia for warfare
President of Ukraine Volodymyr Zelenskyy addresses the World Financial Discussion board (WEF) through video convention in Davos, Switzerland on Might 23, 2022.
Anadolu Company | Anadolu Company | Getty Photographs
The worldwide neighborhood ought to have supported Ukraine extra again in 2014 when Russia first illegally annexed Crimea, Ukrainian President Volodymyr Zelenskyy stated Monday, in a video tackle to the World Financial Discussion board in Davos, Switzerland. Zelenskyy referred to as for the “most” stage of sanctions to be imposed on Russia for its present, unprovoked warfare in Ukraine.
- Zelenskyy stated that growing punitive financial measures towards Moscow would let different potential aggressors “clearly know the fast penalties for his or her actions.” He additionally advised Davos individuals that the world is at a “turning level” and most resist Russia’s “brute power.”
5. Pfizer says three Covid photographs for youths underneath 5 are 80% efficient towards omicron
Empty vials of Pfizer-BioNTech coronavirus illness (COVID-19) youngsters’s vaccines are pictured at Skippack Pharmacy in Schwenksville, Pennsylvania, U.S., Might 19, 2022.
Hannah Beier | Reuters
Pfizer and BioNTech’s three-dose Covid vaccine for youngsters 6 months to five years outdated was 80% efficient at stopping sickness through the omicron wave, in response to medical trial outcomes launched Monday. A 3rd dose of the vaccine elicited a powerful immune response, and it was properly tolerated by the youngsters within the trial. The businesses stated the vast majority of unwanted effects had been gentle to reasonable.
- Pfizer and the Meals and Drug Administration had initially sought to fast-track authorization of the primary two doses in February. Pfizer delayed its software to attend on knowledge from the third dose after the primary two photographs had been solely 30% to 40% efficient.
— CNBC’s Sam Meredith, Holly Ellyatt and Spencer Kimball in addition to The Related Press contributed to this report.
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