Here are the top news, trends, and analysis investors need to start their trading day:
1. Dow tracks for the first losing streak of five sessions since January
Trader on the New York Stock Exchange.
US stock futures fell sharply on Friday as the Dow appeared poised for its first five-session losing streak since January. Dow futures declined 300 points and accelerated during CNBC’s interview with St. Louis Fed President James Bullard at 8 p.m. ET from Squawk Box. He turned out to be one of the Fed members who expect rate hikes at the end of 2022, before the average forecast for 2023. “We expected a good year, a good reopening, but this is a bigger year than we expected, inflation higher than we expected, and I think it’s natural that we’re a little more restrictive here to cope with inflationary pressures contain. ” “Said Bullard, who is not a voting member of the Fed this year.
Thursday marked the second day the Dow was down 200 points in a row after the Federal Reserve meeting. So far, the average of 30 stocks for the week has been down nearly 2%. The S&P 500, which was tracking a more modest weekly decline, fell for the third straight year on Thursday. The Nasdaq bucked Thursday’s downtrend, rising nearly 0.9% and breaking a two-session losing streak. The Nasdaq was only 13 points away from Monday’s record close. The S&P 500 was less than 1% from its record high on Monday. The Dow was up more than 2.7% since its last record high in early May.
2. 10-year yields continue to rebound after the Fed-driven spike
Federal Reserve Chairman Jerome Powell speaks during a hearing of the Senate Banking Committee on Capitol Hill, Washington, Jan.
Al Drago | Swimming pool | Reuters
The yield on 10-year government bonds hovered to nearly 1.6% on Wednesday after the Fed-driven spike and traded around 1.5% on Friday. Yields have fallen despite the Fed’s rising inflation expectations. The central bank also signaled two rate hikes in 2023 on Wednesday afternoon. In March, policymakers announced they would not see any hikes until at least 2024, adjusting policies to give the economy more room to recover from the depths of the Covid pandemic.
3. Many commodities recover a day after falling sharply
Many commodities rebounded on Friday, a day after falling sharply as China took steps to cool rising prices. These declines resulted in months-long gains and weighed on stocks. On Thursday, the declines in commodities were widespread, with platinum futures falling more than 11%, along with declines of nearly 6% in corn futures and 4.8% in copper futures.
A Chinese government agency on Wednesday announced a plan to release some of its key metal reserves. Commodities often perform inversely against the dollar as they are mostly valued worldwide in the US currency, which has been gaining in value since the Fed’s decisions this week.
4. Warnings about Covid from a British study and England’s chief medical officer
Paramedics arrive at the emergency room at Sharp Memorial Hospital in San Diego, California with a patient with Covid-19.
Bing Guan | Bloomberg | Getty Images
A new UK study looked at brain imaging before and after coronavirus infections, specifically looking at the potential effects on the nervous system. “In short, the study suggests there could be long-term brain tissue loss from Covid, and that would have some long-term ramifications,” said Dr. Scott Gottlieb told CNBC “The News with Shepard Smith”. The destruction of brain tissue could explain why Covid patients have lost their sense of smell, he said.
Hounslow, London, which on Thursday 27 May 2021 has become one of the UK’s biggest hotspots for the variant of the coronavirus first identified in India.
Tejas Sandhu | MI news | NurPhoto | Getty Images
England’s chief medical officer warned that it would likely be five years before new Covid vaccines against a number of coronavirus variants could “hold the line” at high levels. Until then, Chief Medical Officer Chris Whitty said new vaccination programs and booster vaccinations would be needed. Another relaxation of lockdown restrictions in England was delayed this week due to a surge in cases of the Delta variant, first discovered in India.
5. Biden signs law making June thenth a public holiday
U.S. President Joe Biden is applauded as he picks up a pen to sign the June National Independence Day bill while Vice President Kamala Harris stands in the East Room of the White House in Washington on June 17, 2021.
Carlos Barria | Reuters
Most federal employees will celebrate Friday June 10th because the new public holiday that marks the end of slavery in the United States falls on a Saturday this year. The New York Stock Exchange won’t close for Juneteenth but will consider closing in 2022. On Thursday, President Joe Biden signed a bill making Juneteenth, celebrated on June 19, the first federal holiday since Martin Luther King Jr 1983. June 15 marks the day in 1865 that Union soldiers entered Galveston, Texas, and officially ended slavery in the state. It happened more than two years after then President Abraham Lincoln issued the Emancipation Proclamation.
– Reuters contributed to this report. Follow all market activity like a pro on CNBC Pro. Get the latest on the pandemic with coronavirus coverage from CNBC.
Disclosure: Dr. Scott Gottlieb is a CNBC employee and a member of the board of directors of Covid vaccine maker Pfizer, genetic testing startup Tempus, health technology company Aetion, and biotechnology company Illumina. He is also co-chair of Norwegian Cruise Line Holdings ′ and Royal Caribbean’s Healthy Sail Panel.