It is above all the Nasdaq to inaugurate the new week of Wall Street in the name of sales. The technological list loses 0.94%, confirming the bearish trail that, last week, made it lose 3.9%.
The other indices were also bad, in the face of the continuous flare-up in US Treasury rates.
Those with a ten-year maturity test a new record in three years, leaping to over 2.77%. At the moment they fluctuate upwards not far from the maximum, around 2.7629%.
After 16 Italian time, the Dow Jones lost more than 66 points (-0.19%), to 34,655 points; the Nasdaq fell more than 1% to 13,570, while the S&P 500 fell 0.80% to 4,452.
Great attention, this week, to the data that will condition the monetary policy of a Fed already determined to be more aggressive, with rate hikes of 50 basis points and a sustained reduction in its balance sheet.
In the stretch between 2 and 10 years, the yield curve of US Treasuries has returned to normal after the inversion of about two weeks ago: in fact, ten-year rates oscillate at a value higher than that of two-year rates, which travel around the 2.541%.
On the other hand, the yield curve remains inverted in the 5-30 year segment: five-year rates rise to 2.8154%, higher than the 2.784% of 30-year rates.
Inflation and the fear that the Fed, with its monetary tightening, will end up derailing the growth of the US economy are the factors that most of all, together with the effects of the war between Russia and Ukraine, haunt the operators.
New indications on US inflation will arrive tomorrow, Tuesday 12 April, with the publication of the consumer price index for March; The day after tomorrow Wednesday 13 April, it will be the turn of the US producer price index, also in March.
Sentiment is also undermined by fears of a more sustained-than-expected economic slowdown in China, in the wake of the lockdowns launched to stem the worst Covid wave since 2020.
Fear of the impacts of lockdowns in China – new problems in supply chains and uncertainties on global economic growth – are ditching oil prices today.
Brent and WTI both lost more than 4%, slipping to $ 98.55 and $ 94.08 respectively. Bank of America analysts reiterated the outlook for oil prices at an average of $ 102 a barrel for 2022-23, however cutting the summer peak estimates to $ 120. UBS has revised its June Brent forecast down by $ 10 to $ 115 a barrel.
Meanwhile, the US quarterly season is expected to start, which will see JPMorgan Chase and Delta disseminate the financial statements for the first quarter of 2022 starting Wednesday. Goldman Sachs, Morgan Stanley, Citibank, Wells will also disseminate their quarterly reports. Fargo, PNC.