- The tug of war between bond yields and equity prices continued on Monday, with stock gains tempered by a dip in Treasury yields, which pushed a swath of rates beyond 3%.
- In a bumpy session that saw the index soar as much as 1.5% before reversing course, the S&P 500 managed to hold on to its gains. The Dow Jones Industrial Average's blue chips were scarcely moved. The shares of Amazon (AMZN) increased when a 20-for-1 stock split was implemented. Twitter (TWTR) plummeted after Elon Musk stated that he believes the firm is violating their merger agreement by refusing to provide information regarding spam and false accounts that he had requested.
- Early in the session, stocks surged after Beijing's latest decision to relax COVID regulations fueled optimism that this would help alleviate supply-chain pressures. In the meantime, the treasury selloff has pushed 10-year rates back above 3%, a level not seen since mid-May and a potential negative for risk sentiment. Fears that rising borrowing costs will damage growth and corporate earnings have hampered shares' ability to stage a sustained rally.
- Last week's data, which showed stronger-than-expected US hiring in May, suggested the Federal Reserve will stick to its tightening path to keep price pressures in check. However, economists at Goldman Sachs believe the Fed will be able to carry out its aggressive rate-hike strategy without plunging the country into recession.
- Chinese officials are expected to loosen restrictions on DiDi Global (DIDI), a ride-hailing behemoth, and other US-listed tech companies, driving DiDi's stock up more than 20%. Jd.com (JD), a Chinese internet company, led increases on the Nasdaq 100. Bitcoin has reclaimed the $31,000 level.