Here are the most important news, trends and analysis that investors need to start their trading day:
1. Wall Street seems stable after two weeks of consecutive victories
Traders on the floor of the NYSE, March 21, 2022.
US stock futures rose slightly on Monday. Wall Street was looking to close out a monthly gain for March on Thursday after posting a two-week winning streak. On the first day of April, next Friday, the government is expected to release its final monthly jobs report ahead of the Federal Reserve’s policy meeting in the first week of May. Growing expectations for more aggressive interest rate hikes pushed bond yields higher. Indeed, 5-year and 30-year Treasury yields reversed on Monday for the first time since 2006, raising fears of a possible recession. The benchmark 10-year Treasury yield rose nearly 2.56%, hitting a new near two-year high.
2. Oil sinks on demand worries after Shanghai Covid lockdown announcement
Health workers wearing protective gear against the Covid-19 coronavirus walk on a street in Shanghai’s Jing’an district on March 26, 2022.
Hector Retamal | AFP | Getty Images
Oil prices in the United States and abroad fell about 5% on Monday, traders worried about a drop in fuel demand in China after Shanghai launched a two-stage Covid lockdown . The initial phase, aimed at trying to contain China’s worst pandemic outbreak, runs from Monday to Friday morning and applies to the eastern part of Shanghai, home to the city’s financial hub. The Shanghai Stock Exchange will not be affected. The second phase applies to the western part of the city and runs from Friday morning to the afternoon of April 5.
Aerial view of the Tesla Shanghai Gigafactory on March 29, 2021 in Shanghai, China.
Xiaolu Chu | Getty Images News | Getty Images
Tesla will suspend production at its Shanghai factory in line with the first phase of the city’s Covid lockdown, Reuters reported on Monday. The company declined to comment on the status of operations at its Shanghai plant for the week. Meanwhile, Tesla CEO Elon Musk said he had Covid again but had “almost no symptoms”.
3. Tesla wants to split its stock so it can pay a stock dividend
Tesla Motors founder and CEO Elon Musk speaks during a media tour of the Tesla Gigafactory, which will produce batteries for the electric car maker, in Sparks, Nevada.
James Glover II | Reuters
Tesla has revealed it wants to split its stock so it can pay a stock dividend to shareholders, according to a filing Monday with the Securities and Exchange Commission. Tesla shares jumped 5.5% in premarket. The stock has more than doubled since its last split – a 5-to-1 split – in August 2020. Tesla shares have struggled in 2022 after gaining nearly 50% for all of last year and around 740% in 2020.
In a tweet on Saturday, Musk said he was seriously considering building a new social media platform. The Tesla and SpaceX billionaire made the comment a day after claiming that Twitter does not allow free speech. Twitter, which said it is committed to free speech, did not immediately respond to a CNBC request for comment.
4. Russian-Ukrainian talks continue; US backtracks on Biden comment
A view of a heavily damaged building after a shelling in the Vitryani Hory area in kyiv, Ukraine, March 27, 2022.
Andres Gutierrez | Anadolu Agency | Getty Images
Talks between Ukraine and Russia are expected to continue this week, with officials from both countries visiting Turkey in hopes of defusing the conflict. Meanwhile, Moscow said President Joe Biden’s remarks on Saturday that Russian leader Vladimir Putin “cannot stay in power” were alarming. The White House later backtracked on Biden’s comments, saying the administration was not calling for regime change in Russia – and instead the president was referring to Putin trying to wield power on the continent European.
5. Biden will propose a “minimum income tax for billionaires”
US President Joe Biden delivers remarks during the afternoon general session of the National League of Cities’ Congressional City Conference at the Marriott Marquis in Washington, March 14, 2022.
Sarah Silbiger | Reuters
Biden is expected to propose a new minimum tax that would largely target billionaires when unveiling his 2023 budget, according to a document obtained by CNBC. The so-called Billionaires Minimum Income Tax would assess a minimum tax rate of 20% on US households worth more than $100 million. More than half of the revenue could come from those worth over $1 billion. The proposed tax is expected to reduce the deficit by about $360 billion over the next decade, according to the document.
— CNBC Journalists Tanaya Macheel, Vicky McKeever, Fred Imbert, Sam Shead, Chloe Taylor, michelle fox and Kayla Tausche as well as Reuters contributed to this report.
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