Here are the top news, trends, and analysis investors need to start their trading day:
1. Wall Street will open steadily after another S&P 500 record
Traders on the floor of the New York Stock Exchange.
Source: NYSE
US stock futures were flat on Monday after the S&P 500 hit another record high on Friday. The S&P 500 gained 0.4% over the course of the week and posted a three-week winning streak. The Nasdaq’s gain on Friday put the tech-heavy index within 0.5% of its record high in late April. The Nasdaq rose nearly 1.9% for the week, posting its fourth straight weekly gain. Friday’s modest rise in the Dow pushed the 30-share average less than 1% closer to last month’s record close. However, the Dow lost 0.8%, breaking a two-week winning streak.
The 10-year Treasury yield remained stable early Monday and was well below 1.5% ahead of the June Fed meeting on Tuesday and Wednesday. Inflation will be the focus of investor attention following the unexpectedly hotter than expected consumer price index for May last week. The Fed has promised to keep its extraordinary easy money measures from the Covid era – massive asset purchases and near-zero interest rates – claiming that any price pressures are temporary.
2. Novavax says its Covid vaccine is 90% effective overall
A woman holds a small bottle with a sticker “Coronavirus COVID-19 Vaccine” and a medical syringe in front of the Novavax logo displayed in this image dated October 30, 2020.
Given Ruvic | Reuters
Biotech company Novavax said Monday its Covid vaccine had been shown to be safe and 90.4% overall effective in a Phase III clinical trial of nearly 30,000 participants in the United States and Mexico. In addition, the two-dose vaccine was found to be 100% effective in preventing moderate and severe illness, and 93% effective in some variants. Novavax plans to file a marketing authorization application with the Food and Drug Administration in the third quarter. If approved for an emergency, it would join the shots from Pfizer, Moderna, and Johnson & Johnson, which have already received US approval. Novavax shares rose 5% in pre-trading hours.
3. Bitcoin bounces after Tudor Jones approval, Musk tweet
Bitcoin surged back above $ 40,000 on Monday, shortly after investor Paul Tudor Jones endorsed it in a CNBC interview and a day after Tesla CEO Elon Musk tweeted that the electric automaker could accept bitcoin transactions again in the future. Musk said on Sunday that Tesla will allow Bitcoin transactions again “if there is confirmation of reasonable (~ 50%) clean energy use by miners with a positive future trend.” Tesla stopped buying Bitcoin cars in mid-May, citing concerns about the climate impact of cryptocurrency mining.
4. Biden attends the NATO summit after the G7 meeting before the Putin meeting
US President Joe Biden attends the G7 summit in Carbis Bay, Cornwall, on June 11th, 2021.
Leon Neal | AFP | Getty Images
President Joe Biden will attend a NATO summit in the Belgian capital, Brussels, on Monday to consult European allies to counter provocative actions by China and Russia. Biden will also highlight the United States’ commitment to the 30-Nation Alliance, which has been widely maligned by former President Donald Trump. Biden’s trip to Europe began with a G-7 meeting that ended on Sunday with a promise to take action against Covid vaccines and a global corporate tax, as well as calling on China to “respect human rights and fundamental freedoms.” Biden will meet with Russian President Vladimir Putin in Geneva on Wednesday.
5. Israel’s new government gets to work after the fall of Netanyahu
The leader of the Israeli Yemina party, Naftali Bennett, will make a political statement on May 30, 2021 in the Knesset, the Israeli parliament, in Jerusalem.
YONATAN SINDEL | AFP | Getty Images
For the first time in twelve years, Israelis woke up to a new prime minister after 49-year-old Naftali Bennett secured parliamentary support late Sunday and overthrew longtime leader Benjamin Netanyahu. Under a coalition agreement, Bennett, a former rival of Netanyahu’s ally, will serve as prime minister for the first two years of his tenure, and then Secretary of State Yair Lapid, the coalition’s architect, will become prime minister. Netanyahu, who has been in office the longest, will now be the opposition leader. The 71-year-old has made it clear that he has no intention of leaving the political arena.
– The Associated Press contributed to this report. Follow the whole market like a pro on CNBC Pro. Get the latest on the pandemic with coronavirus coverage from CNBC.
