Here are the most important news, trends and analyzes that investors need to start their trading day:
1. After logging a long winning streak, Wall Street looks down
Traders on the floor of the NYSE, March 29, 2022.
US stock futures pointed lower on Wednesday, a day after logging the four-session winning streaks of the Dow Jones Industrial Average and the S&P 500, and Nasdaq saw back-to-back gains. Russia-Ukraine ceasefire talks have raised hopes of diplomatic progress, with Wall Street shaking off a reversal of yield yields in the bond market.
With two trading days left in March, the Dow, S&P 500 and Nasdaq are all set to break the two-month losing streak with strong gains. Nasdaq closed outside the correction zone on Tuesday, now down 10% from its November record high. U.S. oil prices rose 2% early Wednesday after a two-day trend. West Texas Intermediate Crude was tracking for a fourth consecutive monthly gain.
2. Yields are no longer reversed; Rising mortgage rates are hurting the demand for referees
The yield between the 5-year and 30-year treasuries did not reverse early Wednesday. For the first time since 2006, Monday’s 5-year yield turned around the 30-year high, and Tuesday remained the same. The 2-year Treasury yield and the benchmark 10-year yield were virtually flat on Tuesday and closed early Wednesday.
Mortgage rates rose last week, with total home loans down 6.8%. The 30-year fixed-rate mortgage rose 0.3 percentage points to 4.8% in the week ended March 25, the biggest one-week increase since February 2011, the Mortgage Bankers Association said. This refinancing application is down 15% on the week compared to 60% a year ago. Demand for home loan purchases increased 1% for the week but was 10% lower than the same week a year ago.
3. ADP says U.S. companies added 455,000 jobs in March
Pedestrians walk past a Now Hiring sign in Arlington, Virginia, on March 16, 2022.
Stephanie Reynolds | AFP | Getty Images
Two days before the government’s March employment report, the last before the Federal Reserve’s first meeting in May, the ADP said Wednesday morning that U.S. companies had added 455,000 jobs in March, largely in line with estimates. The total upward revision was below 486,000 in February, bringing the ADP’s first-quarter personal salary to 1.45 million. At the time of Kovid, ADP data was not a great indicator of what the government jobs report could show. The Fed needs to strike a balance between concerns about recession against economic growth and rising prices. Central bankers are expected to be more aggressive in raising interest rates to fight inflation.
4. Doubts have been raised about Russia’s commitment to repel the Ukrainian attack
On March 30, 2022, a completely destroyed building was found after the Russian shelling in the Soviatoshinsky district of Kiev, Ukraine.
Metin Aktas | Anadolu Agency | Getty Images
Russia’s offensive in Ukraine continues on Wednesday, a day after Moscow vowed to reduce its military presence near the Ukrainian capital Kyiv and the northern city of Chernihiv. The promise to withdraw Russia’s aggression was met with skepticism from Ukraine, the United States and Britain. Representatives of Russia and Ukraine met in Istanbul on Tuesday. The Ukrainian delegation has set up a framework under which the country will declare itself neutral and ensure its security by other countries.
5. Health regulators clean up another round of covid vaccine booster
Vials with Pfizer-BioNTech and Moderna coronavirus disease (COVID-19) vaccine labels are shown in this illustrated photo taken on March 19, 2021.
Given Rubik | Reuters
The Food and Drug Administration has cleared the fourth Pfizer and Modern Covid vaccine shot for everyone 50 years of age or older as top health officials announced a more contagious Omicron subvariant, BA.2, the FDA and the fifth approved the influential version of Covid-19 in the United States. Dosage for some young people with uncompromising immune system. People 12 years of age or older with weakened immune systems are eligible to receive a fifth dose of Pfizer, and those 18 years of age or older are eligible for immunocompromised Tara Moderna. The Centers for Disease Control and Prevention quickly signed the decision.
A health worker fills a syringe from a vial with a dose of the Johnson & Johnson vaccine against the Covid-19 coronavirus, while South Africa continues its vaccination campaign at Clarksdorp Hospital on February 18, 2021.
Phil Magako | AFP | Getty Images
The CDC also recommends that all adults receiving two doses of the Johnson & Johnson vaccine take a third shot of Pfizer or Modern. Adults who have received the J&J vaccine and a second shot of Pfizer or Moderna are still not eligible for the third dose, unless they are 50 years of age or older or have low immunity. The new booster is operated at least four months after all the last shots.
– CNBC reporters Chloe Taylor, Vicky McKeever, Diana Alik And Spencer Kimball As well as The Associated Press and Reuters contributed to this report.
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