Here are the most important news, trends and analyzes from which investors should start their trading day:
1. Wall Street will rise after the S&P 500 reached its lowest level in more than a year
Traders work on the floor of the New York Stock Exchange (NYSE) in New York, March 22, 2022.
Brendan McDermid Reuters
US stock futures rebounded on Tuesday, with investors hoping Wall Street could break a three-session losing streak. The S&P 500 fell to its lowest level in more than a year on Monday. The broad market index fell 3.2 percent, closing below 4,000. The Nasdaq fell nearly 4.3 percent and the Dow Jones Industrial Average fell close to 2 percent. Nasdaq’s bear market approached a 30% drop from its last record high in November. The S&P 500 and Dow moved deeper into a correction range defined by a 10% or more decline from their most recent record highs in early January.
2. Yields on 10-year government bonds and falling oil prices in the United States; bitcoin bounces
Brutal stock market sales have recently been driven largely by rising yields on 10-year bonds, as bond traders are betting that the Federal Reserve will not be able to control inflation in a timely manner. Ahead of two key reports on inflation on Wednesday and Thursday, President Joe Biden is due to comment on inflation on Tuesday.
- The 10-year decline in yields from perennial peaks did not seem to help shares on Monday. However, the reference yield fell again on Tuesday, falling below 3%, and shares rose in the premarket.
- One day after sinking nearly 6.1 percent, oil prices in the United States fell another 1.5 percent on Tuesday, but remained above $ 100 a barrel. Rising crude oil prices have hit US gas pumps – and on Tuesday the national average reached an unadjusted inflation record of $ 4.37 a gallon, according to the AAA.
- Bitcoin rose above $ 31,000 on Tuesday, a day after falling below that level by more than a 50 percent drop from its highest level since November. The latest price declines come amid a broader, multi-day sell-off that has taken over much of the crypto market and stocks.
3. Peloton is submerged after reporting a large loss and poor targeting
Peloton on Tuesday reported a larger-than-expected quarterly loss and a sharp drop in sales as inventory piled up in warehouses and ate up the company’s money. Shares of the manufacturer of related fitness equipment fell by more than 20% in pre-marketing. Peloton offered weak sales forecasts for the current quarter, citing weaker demand. The company expects that the planned increase in the subscription price may cause some users to cancel their monthly memberships.
4. The availability of migraine medications is rising; shares of vaccine maker Covid are sinking
Pfizer said Tuesday it would buy migraine drug maker Biohaven Pharmaceutical for about $ 11.6 billion in cash. Pfizer will acquire all Biohaven shares it does not yet hold for $ 148.50 each in cash. This is 78.6% higher than the closing price of Biohaven on Monday, the premium is largely reflected in the preliminary markets on Tuesday. In November, Pfizer acquired overseas trading rights for two migraine drugs from Biohaven for up to $ 1.24 billion, with Pfizer taking a 2.6% stake.
Shares of Novavax sank more than 20% in pre-market trading after the vaccine maker missed both the top and bottom estimates for its last quarter. The omission comes as Novavax shipped only 31 million doses of Covid in the quarter, well ahead of the projected 2 billion vaccinations for 2022. Although confirming its previous revenue forecast for 2022, the company said it expects vaccine sales to accelerate in the current quarter.
5. Tesla suspends production in Shanghai; Musk has “aligned” with EU technology legislation
Tesla has suspended most of its production at its Shanghai plant due to problems with the supply of parts, according to Reuters, citing an internal note. This is the latest in a series of difficulties for the electric vehicle maker’s factory in China’s largest city, which has been experiencing various levels of blockage for more than a month under that country’s zero-covid policy.
EU industry chief Thierry Breton met with Elon Musk in Texas on Monday, and the two signaled an agreement on digital media regulation in Europe before buying Twitter from Tesla’s CEO. In a video with Breton Musk, he said the spirit of the Digital Services Act was “exactly in line” with his thinking. The two do not go into detail about the law, which imposes heavy fines on platforms if they do not control illegal content.
– Mackenzie Sigalos of CNBC, Lauren Thomas and Pippa Stevens, and Reuters contributed to this report.
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