- As a cautious Fed speaker dampened some of the optimism that inflation may have peaked, US stock futures fell on Monday, and treasury yields increased.
- Products on the S&P 500 fell 0.4%, while those on the tech-heavy Nasdaq 100 fell 0.7%. These contracts are often more sensitive to interest rate changes. Tesla, chip companies Nvidia, Intel, and Micron Technology all had losses in New York premarket trading of between 1% and 2%. A near three-month high was reached by the Stoxx 600 index for Europe, while Chinese stocks gained for a second day on expectations that their current economic isolation would soon come to an end.
- After Federal Reserve Governor Waller said over the weekend that interest rate hikes still had a ways to go, the dollar started to rise. His remarks also contributed to a more than 8 basis point increase in 10-year Treasury yields.
- While the S&P 500 had its best week since June due to evidence that US inflation was slowing and the possibility that the Fed will shift to a more dovish stance, some of the biggest money managers in the world are still holding onto risk-off positions due to the potential of entrenched inflation. A hedge fund solutions team at UBS group is playing it safe, while JPMorgan Asset Management has a record amount of cash allocated to at least one of its strategies.
