BY THE NUMBERS
US stock futures sank on Monday after the worst week on Wall Street since January. Bond yields soared as investors braced for the Federal Reserve to raise interest rates later this week following better-than-expected consumer inflation data on Friday. The S&P 500 was looking to enter bear market territory again and test this year’s low of 3,810.32 last month. (CNBC)
The 2-year Treasury yield hit its highest level since 2007 on Monday, trading around 3.2%. At one point, the 2-year yield briefly reversed and outperformed its 10-year counterpart for the first time since April. The so-called inversion of the yield curve is considered an indicator of a recession. The benchmark 10-year yield then jumped to 3.26%. (CNBC)
The Fed is scheduled to hold its June meeting on Tuesday and Wednesday, with a 0.5% rate hike expected. Anything more than that would be a surprise, but there is a belief in the markets that central bankers will have to be even more aggressive to quell inflation. The Fed is in a tight spot, trying to calm things down with tighter monetary policy while trying not to push the economy into a recession. (CNBC)
TODAY IN THE NEWS
Bitcoin fell 14% to below $24,000 on Monday, hitting its lowest level since December 2020, as investors dumped cryptocurrencies in a broader selloff of risky assets. Over the weekend and into Monday morning, the value of the entire cryptocurrency market fell below $1 trillion for the first time since February 2021, according to data from CoinMarketCap. (CNBC)
Electric vehicle startup Electric Last Mile Solutions (ELMS) said late Sunday that it plans to file for bankruptcy less than a year after it went public through a merger with a special purpose acquisition company. The ELMS public offering, at the end of June 2021, came amid a wave of SPAC deals that took electric vehicle manufacturers public. The company is the first of the post-SPAC electric vehicle manufacturers to say it will file for bankruptcy. (CNBC)
Tesla (TSLA) has sacked its country manager in Singapore just over a week after the electric carmaker’s CEO, Elon Musk, warned of global job cuts. Christopher Bousigues posted on LinkedIn on Sunday that his position had been “eliminated,” saying his firing was related to job cuts that Tesla had already flagged. Bousigues and Tesla did not immediately respond to a request for comment when contacted by CNBC.
Members of the House select committee investigating the Jan. 6 Capitol riots were silent on what to expect at this week’s public hearings, giving little detail beyond their road map to proving former President Donald Trump to blame. of the efforts to nullify the 2020 elections. results. (CNBC)
Key senators announced a framework agreement on new gun legislation on Sunday, marking a breakthrough in a series of measures to combat gun violence, including “red flag” laws and enhanced background checks on gun buyers. . The joint statement endorsing the deal was signed by 10 Democrats and 10 Republicans. (NBC News)
Federal health officials said Sunday that doses of Pfizer’s Covid vaccines appear to be safe and effective for children under 5 years of age. Last week, the FDA released a similar analysis of Moderna’s vaccines for children under 6, ahead of Wednesday’s meeting of FDA outside experts. (AP)
ACTIONS TO SEE
Shares of cryptocurrency exchange Coinbase (COIN) sank more than 14% amid the sharp drop in prices of bitcoin and other digital assets over the weekend.
Microstrategy (MSTR) fell more than 20% in premarket trading as bitcoin price fell back below $24,000. Microstrategy has bet big on bitcoin and had over 129,000 coins at the end of March.
Silvergate Capital (SI), a crypto-focused bank, saw its shares drop more than 13% in response to the drop in bitcoin and other digital assets. Silvergate’s fall came despite a positive start from Wells Fargo.
Big Tech shares fell sharply in premarket trading as investors braced for a sell-off. Amazon (AMZN) was one of the worst performers among mega-cap names, falling nearly 4%.
DocuSign (DOCU) 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 cut forecasts. Wolfe Research downgraded the stock to underperform its peers over the weekend.