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5 things to know before the stock market opens Tuesday, June 14

5 things to know before the stock market opens Tuesday, June 14

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

1. Wall Street braces for a rally after the S&P 500 officially closed in a bear market

Traders on the floor of the New York Stock Exchange, June 13, 2022.

Source: NYSE

US stock futures Bounce back after Tuesday’s cooler inflation report and what could be more aggressive Federal Reserve Wednesday’s rate hike. The Standard & Poor’s 500 on Monday Officially closed in bear market منطقة, which is defined as a decline of 20% or more from its previous high in January. The broad market index also hit a new low for the year.

  • Monday’s heavy selling took the S&P 500 down 3.9% and Nasdaq – Already in a bear market since March – down 4.7%. The daw It sank 876 points, or 2.8%. The average of 30 stocks fell more in the correction, down 17% since their January high. A correction is defined as a decrease of 10% or more from a previous high. All three stock indices declined for four consecutive sessions.

2. The 10-year Treasury yield fell from its 2011 high after cooler inflation data

The 10-year treasury bond yield Tuesday retreated from 2011 highs, trading about 3.3%After the government’s producer price index for May rose 10.8% year-on-year, Slightly smaller height than expected. The producer price index is the flip side of the inflation coin at the wholesale level, after the hotter than expected CPI last week. The Producer Price Index remained near a historic high on a yearly basis as it rose 11.5% in March.

3. The Federal Reserve begins its two-day meeting and the markets are now expecting a rate hike of 0.75%

US Federal Reserve Chairman Jerome Powell discusses raising interest rates at a press conference in Washington, DC on May 4, 2022.

Xinhua News Agency / Getty

expect markets The Fed will raise interest rates by 0.75% at the end of its two-day June policy meeting on Wednesday. Only the magnitude of the rate increase is in question, with Fed Chair Jerome Powell repeatedly saying that a 0.5% rise in June and July seemed appropriate.

  • After the Fed meeting in May, which saw interest rates rise 0.5%, Powell took 0.75% off the table.
  • But a lot has changed since then with the stock market selloff and the surge in bond yields, another recession pointing to a two-year yield and a 10-year yield reversal.
  • Markets are concerned that the Fed will have to clamp down further on the economy to fight inflation and that it could lead to a recession.

4. Coinbase to lay off 18% of full-time jobs; Bitcoin is dropping again

Coinbase reported a 27% drop in revenue in the first quarter as usage of the platform declined.

Chesnot | Getty Images

Cryptocurrency exchange Queen Piece will cut 18% of full-time jobs, According to an email Send it to employees Tuesday. CEO Brian Armstrong cited a potential recession, the need to manage costs, and growth “very quickly” during a bull market. Coinbase shares fell 7% in the pre-market after closing 11.4% on Monday. Before the initial market plunge on Tuesday, the stock was down 79% year-to-date in the form of bitcoin and the entire crypto market sold out in 2022.

  • Bitcoin It briefly fell below $21,000 overnight in Asia before bouncing back a bit. Crypto assets reached On Monday, concerns about lending platform Celsius escalated and Binance paused withdrawals for a while. Bitcoin, which traded around $22,000 early Tuesday, has fallen nearly 68% of all times in November.

5. Oracle Surges as Database Software Giant Increases Profits and Revenues

A sign is placed in front of Oracle’s headquarters on June 13, 2022 in Redwood Shores, California.

Justin Sullivan | Getty Images

inspiration Shares rose 11% on Tuesday, in the morning after the database software company released its fiscal fourth-quarter earnings and revenue that skip grades. Revenue increased 5% to $11.84 billion from the previous year, driven by growth in the company’s cloud infrastructure business, which competes with Amazon web services and Microsoft I visit.

  • “We believe this surge in revenue growth indicates that our infrastructure business has now entered a hyper-growth phase,” Oracle CEO Safra Katz said in a statement. Oracle’s earnings are especially important as investors shift their focus to companies that can generate profitability and cash during an economic downturn. Before the jump following hours, Oracle shares are down 27% for the year.

– CNBC channel Sarah MinAnd the Samantha SobinAnd the Fred AmbertAnd the Jeff CoxAnd the Abigail NgAnd the Kate Rooney And the Ari Levy Contribute to this report.

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