Here are the most important news, trends and analyzes that investors need to start their trading day:
1. Stock futures will sink into Tuesday’s drop on Fed concerns
Traders on the floor of the NYSE, March 31, 2022.
U.S. stock futures fell on Wednesday as investors awaited further insights into moving the Federal Reserve toward tightening monetary policy. The minutes from the Fed’s March meeting, which marked the first interest rate hike in more than three years, ended at 2 pm ET. The market saw growth of at least 0.25% in the remaining six Fed meetings of the year, with large increases of 0.5% in May and June. Fed Governor Lel Brainard, who is generally in favor of a relaxed policy and lower rates, said on Tuesday that the central bank needed to act quickly and aggressively to reduce inflation. These comments sent Wall Street lower and bond yields back to a three-year high.
2. Bond yields increase, mortgage rates rise, demand for home loans decreases
Indeed, 30-year fixed-rate mortgages topped 5% on Tuesday. According to the Mortgage Bankers Association, the rising rate environment has further reduced the total home loan application volume by 6% in the last week. This is 41% less than the same week a year ago.
3. The CEO of Oil, Yellen will testify at a separate hearing on the Russia-Ukraine war
Oil prices rose on Wednesday amid concerns over supplies as the United States and its European allies consider further sanctions against Moscow over allegations of wartime atrocities by Russian troops in Ukraine. The head of the European Council says Russia’s oil and gas sanctions are needed sooner or later. Gasoline prices have risen due to higher prices of crude products. CEOs of oil companies, including Chevron and Exxon, will testify before a House panel on Wednesday about what they are doing to control energy costs. At another House hearing, Treasury Secretary Janet Yellen was ready to talk about the global impact of Russia’s aggression on Ukraine on the world economy.
4. Top of the frontier with $ 3.6 billion cash offer for JetBlue Spirit Airlines
A Spirit Airlines flight to Fort Lauderdale-Hollywood International Airport in Fort Lauderdale, Florida on February 07, 2022.
Joe Riddle | Getty Images
JetBlue Airways has made an unsolicited জন্য 3.6 billion cash offer to Spirit Airlines, raising questions about Spirit’s agreement to merge with rival discount carrier Frontier Airlines. Spirit said its board is evaluating JetBlue’s offer, which is 33% higher than Frontier’s stock-and-cash offer. Trading in spirit shares was halted before the market closed on Tuesday after the stock rose more than 22%. Shares of Spirit were lower in the premarket on Wednesday. Frontier was even lower at the premarket.
5. Musk has spent $ 2.64 billion on Twitter shares so far this year, the filing show
Elon Musk speaks at the Automotive World News Congress at the Renaissance Center in Detroit, Michigan.
Rebecca Cook | Reuters
According to a regulatory filing Tuesday, Tesla CEO Elon Musk has been buying Twitter shares almost daily since the end of January, spending $ 2.64 billion on his current stake in the company. The revelation came in a 13D, confirming Musk’s intentions to become more active in the Twitter business. He was announced as a new member of the board on Tuesday morning. Twitter also confirmed that it was testing an edit button, which was the subject of a masked Twitter poll on Monday, just hours after a filing was published that it had gained more than 9% share in the social network.
– CNBC reporters Jeff Cox, Diana Alik, Leslie Josephus, Laura Kolodney And Jordan Novette As well as The Associated Press and Reuters contributed to this report.
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