U.S. equity futures dropped on Monday as investors continue to adapt to expectations of higher interest rates.
Tech stocks dropped the hardest as staggering inflation numbers forced the Fed to take a more hawkish stance on inflation.
On the other hand, rising oil prices and a labor shortage threaten to make inflation worse. Together with more potential lockdowns, inflation could have a dampening effect on U.S. growth.
Meanwhile, investors will soon know more about what the Omicron variant and higher prices means for stocks as the start of earnings season kicks off this week.
|S&P 500 Futures||4,654.25||-33.25||-0.71%|
U.S. Dollar and Treasuries
Treasury yields rose to a 2 year high as investors react to a shift in monetary policy. The yield on the 10-year Treasury rose one basis point. The dollar strengthened against a basket of major currencies.
|U.S. Dollar Index (DXY):||95.96||+0.24||+0.25%|
|U.S. 1 Year Treasury Bill||0.415%||0.002||0.413%|
|U.S. 5 Year Treasury Note||1.520%||0.017||1.504%|
|U.S. 10 Year Treasury Note||1.774%||0.006||1.767%|
Stocks To Watch
Take-Two Interactive, the creator of the popular social game FarmVille, is acquiring Zynga. The gaming company surged in premarket trading on the news. The shares of Take-Two, on the other hand, dropped almost 9%, suggesting that investors don’t approve of the deal.
Tech companies dropped across the board as investors are rotating away from risk assets. NVIDIA dropped more than 2%, Apple dropped 1.2% and Microsoft dropped 1.47%. Tesla, which is also treated as a tech stock in today’s markets, dropped 2%.
|Symbol||Company Name||Price||Chg. %||Volume|
|ZNGA||Zynga Inc. Cl A||$9.16||52.67%||6.91M|
|TTWO||Take-Two Interactive Software Inc.||$152.28||-7.48%||99.08K|
Commodities To Watch
|WTI Crude Oil||$78.43||-0.60%|
|Brent Crude Oil||$81.33||-0.51%|
The global crypto market cap fell below $2 trillion, to $1.94T, as crypto entered a bear market. Bitcoin’s dominance is currently 40.46%, unchanged since yesterday.
|Currency||Symbol||Price||Chg. %||Market Cap.|