Here are 5 things to know before the stock market opens on Tuesday

Here are the most important news, trends and analyzes that investors need to start their trading day:

1. Stock futures are flat because investors are waiting for the main inflation report

Traders work on the floor of the New York Stock Exchange (NYSE) in New York, March 29, 2022.

Brendon McDermide | Reuters

The stock futures changed slightly on Tuesday morning as Wall Street anticipated a key inflation report. A day earlier, three major US equity indicators returned as 10-year Treasury note yields hit a three-year high and concerns over the economic downturn intensified. The Dow Jones Industrial Average fell 413 points, or 1.19%, on Monday, while the S&P 500 fell 1.69%. The Nasdaq Composite – home to many rising stocks that are more sensitive to high interest rates – fell 2.18%.

Tech-heavy Nasdaq is down about 5.7% so far. The S&P 500 is down 2.6%, while the Blue Chip Dow is down about 1.1%.

2. The 10-year Treasury yield reached its highest level since December 2018

The 10-year U.S. Treasury yield traded at its highest level since December 2018 on Tuesday morning, reaching 2.82% before retreating slightly to 2.798%. The bond yield comes ahead of the March Consumer Price Index report, which the Labor Department is due to release at 8:30 a.m. Tuesday.

Treasury yields, which run counter to prices, have risen sharply in recent weeks. As of March 7, the 10-year U.S. Treasury yield was down 1.7%. However, yields have risen as bond market braces have been tightened by a more aggressive policy from the Federal Reserve. In March, the US Federal Reserve raised interest rates for the first time in more than three years, and a further increase is expected at the May meeting.

3. March CPI is expected to show the warmest inflation since 1981

A man runs a grocery store in Lincoln Market on March 10, 2022, in the Prospect Leferts Garden neighborhood of Brooklyn Borough, New York City.

Michael M. Santiago | Getty Images

According to Dow Jones estimates, the consumer price index for March is projected to grow 8.4% year-on-year. This will be the biggest leap year after year since December 1981. Economists also expect 1.1% monthly growth. In February, consumer prices rose 0.8% month-over-month and 7.9% in the last 12 months.

The CPI, which tracks a wide range of products and services, has been at its highest level in decades and decades. The Fed’s policy is being tightened to reduce historically high inflation.

Higher food and rental costs are expected to be a significant contributor to March inflation. However, electricity prices will be seen in Tuesday’s report. They are expected to see a sharp rise in oil prices in early March in connection with the Russia-Ukraine war.

4. The United States is monitoring possible Russian chemical attacks in Ukraine

Pentagon Press Secretary John Kirby speaks during a news briefing at the Pentagon in Arlington, Virginia, April 11, 2022.

Alex Wong | Getty Images

The Pentagon’s press secretary, John Kirby, said Monday night that the United States was monitoring unconfirmed reports of a possible Russian chemical weapons attack in the Ukrainian port city of Mariupol. Although Kirby indicated that the U.S. did not verify the accounts, he said they were “deeply concerned.” In a statement, Kirby said the unsubstantiated reports “reflect our concerns about Russia’s ability to use various riot control agents in Ukraine, including tear gas mixed with chemical agents.”

British Foreign Secretary Liz Truss says the UK is working to verify the details of a possible attack, which was originally a telegram message posted by an ultra-nationalist section of the Ukrainian National Guard called the Azov Regiment. The message claimed that Russian forces had used “a poisonous substance from an unknown source”.

5. Shanghai’s week-long lockdown makes life easier for some residents

The Shanghai metropolis, where many foreign businesses are located, entered a two-part lockdown this week as municipal authorities sought to control the outbreak of China’s worst covid wave in two years.

Hector Retamaal | AFP | Getty Images

Shanghai’s cowardly lockdowns eased for some residents on Tuesday, more than two weeks after the coronavirus infection increased and strict public health protocols were applied. Local media reported that about 5 million people live in parts of Shanghai where restrictions are being relaxed because no new cases have been detected in those areas for at least two weeks. Although these residents were able to leave their homes, Reuters reported that there was some confusion about how freely they could move.

Shanghai is the largest city in China, home to about 26 million people. Concerns about the human and economic impact of the drastic lockdown have intensified in recent days. On Monday, the U.S. State Department ordered all non-emergency government workers in Shanghai and their family members to leave the city.

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