Monday’s Stock Market: 5 things to know before Market Opens

Before the stock market opens on Monday, consider the following five suggestions.

STOCK MARKET INFORMATION

A stock market is a gathering of buyers and sellers of stocks (also known as shares), which reflect ownership claims on enterprises. It is sometimes referred to as an equity market or a share market. Stocks can be privately traded, such as shares of private companies sold to investors through equity crowdfunding platforms, or publicly listed on a stock exchange. Most investments are made with a particular investing strategy in mind.




Stocks are categorised based on the country in which the company is headquartered. For instance, because Nestlé and Novartis are headquartered in Switzerland and trade on the SIX Swiss Exchange, it is reasonable to consider that their stocks are a part of the Swiss stock market. However, they can also be traded on other exchanges, such as American depositary receipts (ADRs) on U.S. stock exchanges.

1. Futures are falling, and the S&P 500 is poised to go back into a bear market.

Monday saw a decline in U.S. stock market futures following Wall Street's worst week since January. Bond yields increased as investors braced themselves for the Federal Reserve raising interest rates later this week in the wake of Friday's hotter-than-expected consumer inflation numbers. The Dow Jones Industrial Average is anticipated to start the week 500 points lower, or 1.7 percent lower, exacerbating the current decline. The S&P 500 is predicted to re-enter bear market territory and test its previous bottom of 3,810.32 as the Nasdaq is predicted to open down 2.7 percent and 2%, respectively. The Nasdaq has been in a bear market since March.

2. As worries of a recession increase, bond rates are rising, putting pressure on markets.

The 2-year Treasury yield reached its highest level since 2007 on Monday, rising to 3.16 percent. The 2-year yield briefly flipped and soared above its 10-year equivalent for the first time since April. It is believed that a "yield curve inversion" indicates a coming recession. The benchmark 10-year yield then increased to 3.26 percent. The 10-year and 30-year yields, which were both around 3.3 percent, were lower than the 5-year yield, which was at 3.4 percent. Short-term rates have changed more recently because they are more responsive to Fed rate increases.

3. This week, the Federal Reserve is expected to hike interest rates by 0.5 percent, but the markets anticipate more.

The Federal Reserve will hold its June meeting on Tuesday and Wednesday, with a 0.5 percent rate hike anticipated. Anything more would be unexpected, but there has been a growing belief in the markets that central bankers will need to step up their efforts to control inflation. While attempting to tighten monetary policy and prevent a recession, the Fed is in a challenging position. Wall Street will look to Tuesday's producer price index report and Wednesday's retail sales data ahead of the Fed's policy meeting to put last week's hot consumer inflation news into context.

4. As the crypto market as a whole is liquidated, Bitcoin drops below $24,000.

Since December 2020, bitcoin has dropped 14% to roughly $24,000 on Monday as investors sold off the cryptocurrency amid a broader sell-off in risky assets. Concern has been raised by the suspension of client withdrawals by the cryptocurrency lending business Celsius. Statistics from CoinMarketCap show that over the course of the weekend and into the morning on Monday, the market cap of all cryptocurrencies dipped below $1 trillion for the first time since February 2021. The cryptocurrency market has been on edge ever since the so-called algorithmic stablecoin terraUSD and its sister coin luna fell in mid-May.

5. The first maker of electric vehicles after SPAC declares bankruptcy.

launch of an electric vehicle company Electric Last Mile Solutions announced late Sunday that it intends to file for Chapter 7 bankruptcy protection, less than a year after going public through a combination of special purpose acquisition companies. The ELMS IPO, which happened in late June 2021, was one of several SPAC deals that made EV manufacturers publicly traded. The company is the first maker of post-SPAC electric vehicles to file for bankruptcy. In February, the company's founder and chairman, Jason Luo, as well as the CEO at the time, Jim Taylor, resigned after an internal investigation revealed that the company's earlier financial statements were false.

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