5 things to know before the stock market opens on Wednesday March 30


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

1. Wall Street looks lower after posting a multi-day winning streak

Traders on the floor of the NYSE, March 29, 2022.

Source: NYSE

U.S. stock futures pointed to a weaker open on Wednesday, a day after the Dow Jones Industrial Average and S&P 500 posted four-session winning streaks and the Nasdaq posted back-to-back gains. Wall Street shook off a recessionary signal from reverse yields in the bond market as ceasefire talks between Russia and Ukraine raised hopes for diplomatic progress.

With two trading days remaining in March, the Dow Jones, S&P 500 and Nasdaq were all poised to break two-month losing streaks with solid gains. The Nasdaq closed out of correction territory on Tuesday, now less than 10% below its November record. US oil prices rose 2% early Wednesday after a two-day losing streak. West Texas Intermediate crude was aiming for a fourth straight monthly gain.

2. Yields are no longer inverted; mortgage rates soar, hurting demand for refi

The yield spread between 5-year and 30-year Treasuries was no longer inverted early Wednesday. The 5-year yield tipped above the 30-year mark on Monday for the first time since 2006 and stayed that way on Tuesday. The 2-year Treasury yield and the benchmark 10-year yield were virtually unchanged on Tuesday and remained close early Wednesday.

Mortgage rates jumped last week, leading to a 6.8% drop in total mortgage volume. The Mortgage Bankers Association said the 30-year fixed-rate mortgage rose 0.3 percentage points to 4.8% in the week ending March 25, the biggest one-week increase since February 2011. This caused refinance requests to drop 15% week-over-week and falling. a whopping 60% from a year ago. Demand to buy home loans rose 1% for the week, but was 10% lower than the same week a year ago.

3. ADP says US companies created 455,000 jobs in March

Pedestrians walk past a Now Hiring sign in Arlington, Virginia on March 16, 2022.

Stefani Reynolds | AFP | Getty Images

Two days before the government’s March jobs report, the last before the Federal Reserve’s early May meeting, ADP said Wednesday morning that US businesses added 455,000 jobs in March, essentially matching estimates . The total was lower than the upward-revised 486,000 in February and brought the number of private ADP employees in the first quarter to 1.45 million. ADP data during Covid was not a good indicator of what the government jobs report might show. The Fed must balance worries about economic growth and a recession against soaring prices. Central bankers are expected to become more aggressive with interest rate hikes to fight inflation.

4. Russia’s pledge to scale back attacks on Ukraine sparked skepticism

A completely destroyed building is seen after a Russian shelling in the Sviatoshinsky district of kyiv, Ukraine, March 30, 2022.

Metin Aktas | Anadolu Agency | Getty Images

Russian attacks on Ukraine continued on Wednesday, a day after Moscow promised to reduce military activity near the Ukrainian capital Kyiv and the northern city of Chernihiv. Russia’s promise to reduce its aggression has drawn skepticism from Ukraine, the United States and Britain. Russian and Ukrainian delegates met in Istanbul on Tuesday. The Ukrainian delegation established a framework in which the country would declare itself neutral and its security would be guaranteed by an array of other nations.

5. Health regulators allow another round of Covid vaccine recalls

Vials with labels of Pfizer-BioNTech and Moderna coronavirus disease (COVID-19) vaccines are seen in this illustrative photo taken March 19, 2021.

Dado Ruvic | Reuters

The Food and Drug Administration has authorized the fourth injections of Pfizer and Moderna Covid vaccines for all people aged 50 and over, as top health officials declare the most contagious omicron subvariant, BA.2, the dominant version of Covid-19 in the United States. The FDA has also authorized a fifth dose for certain younger people with weakened immune systems. People age 12 and older with compromised immune systems are eligible for a fifth dose of Pfizer, and immunocompromised people age 18 and older are eligible for Moderna. The Centers for Disease Control and Prevention quickly endorsed the decision.

A healthcare worker fills a syringe from a vial with a dose of the Johnson & Johnson coronavirus COVID-19 vaccine as South Africa continues its inoculation campaign at Klerksdorp hospital on February 18, 2021.

Phil Magakoe | AFP | Getty Images

The CDC has also recommended that all adults who have received two doses of Johnson & Johnson’s vaccine receive a third injection of Pfizer or Moderna. Adults who have received the J&J vaccine and a second shot of Pfizer or Moderna are not yet eligible for a third dose unless they are age 50 or older or have a weakened immune system. All new boosters should be given at least four months after the last injection.

— CNBC Journalists Chloe Taylor, Vicky McKeever, Diana Olick and Spencer Kimball as well as the Associated Press and Reuters contributed to this report.

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