Here are the top news, trends, and analysis investors need to get their trading day started:
1. Stock futures fall after the Dow record when yields rise
Traders on the floor of the New York Stock Exchange.
Source: NYSE
2. The yield on 10-year government bonds hits the 14-month high
The 10-year government bond yield was 1.77% early Tuesday, hitting another high from January 2020 as the introduction of Covid vaccines and planned infrastructure spending raised hopes for a broad recovery in the US economy. However, the move also fueled inflation fears and put pressure on growth stocks, including many tech names, as higher interest rates undermine the value of future earnings and depress market valuations.
3. How Goldman and Morgan Stanley Avoided Archegos Loss
People are seen on Wall Street in front of the New York Stock Exchange (NYSE) in New York City on March 19, 2021.
Brendan McDermid | Reuters
In the Archegos meltdown sparked by the decline in ViacomCBS and other stocks last week, Goldman Sachs avoided losses as a result, CNBC’s Hugh Son reported. When Swiss Credit Suisse and Japanese Nomura said early Monday that they had discharged positions on behalf of Archegos, Goldman and Wall Street rival Morgan Stanley had already discharged their positions, according to knowledgeable people. Archegos is a family office founded by Bill Hwang, a former equity analyst at Julian Robertsons Tiger Management.
4. CDC chief warns that the US is heading towards fate in the Covid fight
Dr. Rochelle Walensky, director of the Centers for Disease Control and Prevention.
Chip Somodevilla | Getty Images
The US is facing “impending doom” as the daily Covid cases increase again, warned CDC Director Dr. Rochelle Walensky. “We can look forward to so much, so much promise and potential where we are, and so much reason to hope, but right now I’m scared,” she said in an emotional, sincere moment during the press conference on Monday morning. Even if vaccinations accelerate across the country, coronavirus hospital admissions will also rise and the death toll will begin to rise. Walensky urged the Americans to “hold out just a little longer”.
5. Biden instructs states to reintroduce coronavirus mask mandates
President Joe Biden speaks about the coronavirus disease (COVID-19) pandemic and vaccination status on the White House campus in Washington, United States, on March 29, 2021 after meeting his COVID-19 response team.
Jonathan Ernst | Reuters
President Joe Biden followed his CDC director’s comments by calling on governors and local leaders to drop full mask mandates in order to reinstate orders. While pointing out that some states should wait to reopen their economies, he also condemned “reckless behavior” that is likely to cause more infections.
“We’re giving up hard-fought, hard-won profits,” said Biden in the press conference on Monday afternoon. “As much as we do in America, it’s time to do more.” He said failure to take the virus seriously “is exactly what got us into this mess in the first place” and could lead to more infections and deaths.
– Get the latest on the pandemic using CNBC’s coronavirus blog.
