1. S&P 500 futures are down after a long losing streak
Traders on the NYSE, May 20, 2022.
S&P 500 futures were down Tuesday morning as Wall Street resumes trading after the Memorial Day holiday. Stocks posted strong gains last week, ending seven-week losing streaks for the S&P 500 and Nasdaq Composite and an eight-week decline for the Dow Jones Industrial Average. The S&P 500 and Dow rose 6.5% and 6.2% respectively, their best weekly advances since November 2020. The tech-heavy Nasdaq was the best-performing major U.S. stock index last week, gaining 6.8%. Stocks were helped in the latter part of last week by quality retail earnings and the Federal Reserve’s preferred gauge of inflation suggested price pressures in April have eased somewhat. During this four-day trading week, Salesforce and Hewlett Packard Enterprise headline the earnings calendar, while the May jobs report is due out on Friday.
2. Bond prices fall, 10-year yield exceeds 2.8%
U.S. Treasury yields climbed on Tuesday, with the yield on the benchmark 10-year note rising 10 basis points to 2.855%. As of 7:20 a.m. ET, the 10-year Treasury yield was around 2.812%. Bond yields move inversely to prices. The bond market action came as preliminary data for May showed eurozone inflation hitting a new record high and oil prices rising.
Investors also digested comments Monday from Federal Reserve Governor Christopher Waller, who said in a speech that he supported the central bank raising interest rates above neutral by the end of the month. This year. The so-called neutral rate is the level at which Fed policy neither restricts nor supports economic growth.
3. Oil rises as EU strikes deal to ban most Russian crude imports
A general view of oil tanks in the port of Transneft-Kozmino near the Far Eastern city of Nakhodka, Russia.
Yuri Maltsev | Reuters
Crude prices rose on Tuesday as European Union leaders reached an agreement late Monday to ban about 90% of Russian oil imports by the end of the year. U.S. benchmark West Texas Intermediate crude futures for July climbed more than 3%, trading as high as $119.43 a barrel. The August contract for international benchmark Brent was around 1.65% higher at $119.54 a barrel. The latest EU sanctions package, which has yet to be finalized, is the sixth in the package targeting Russia following its invasion of Ukraine in late February. According to EU estimates, around three-quarters of Russian crude imports will be immediately affected, rising to 90% by the end of the year. A Russian official said Moscow would “find other importers” for its oil in response to the partial EU embargo.
4. Shanghai set to ease strict Covid lockdowns
After about two months of confinement, Shanghai announced this weekend its intention to ease restrictions on business activities. Metro riders pictured here on May 28, 2022 ride one of the city’s four lines that have resumed operations.
CGV | Visual Group China | Getty Images
Shanghai’s coronavirus lockdown is set to be lifted on Wednesday, after two months of restrictions have upended life in China’s most populous city, angering residents and hampering the world’s second-largest economy. According to Reuters, around 22.5 million people who live in low-risk areas will have their strict Covid restrictions lifted on Wednesday. Although gyms and movie theaters remain closed for the time being, stores can operate at 75% capacity, the Associated Press reported. Full public transport service on buses and subways will resume. Shanghai’s lockdown was part of China’s so-called zero Covid policy.
5. Unilever shares jump as Nelson Peltz joins its board
Cameron Costa | CNBC