- Stocks in the United States surged to a new high as traders braced for a slew of earnings reports from technological heavyweights such as, while keeping inflation fears and mounting COVID-19 threats in mind.
-The consumer discretionary, energy, and materials sectors propelled the S&P 500 to a new high. Paypal surged after the firm announced that it will not pursue an acquisition of Pinterest, putting an end to days of speculation about a potential $45 billion merger. Tesla rose after obtaining an order for 100,000 vehicles from Hertz Global Holdings.
-Still to come: the five top U.S. technology companies are scheduled to report earnings.
-Oil prices fell after reaching $85 per barrel for the first time since 2014, with traders looking ahead to impending discussions between Iran and the European Union, which might lead to the resuscitation of a 2015 nuclear deal.
- Short-maturity Treasury yields fell and the dollar rose as Fed's Powell signaled that inflation could remain high for a longer period of time, fueling market worries that persistent price hikes may force policymakers to raise borrowing costs.
- Gold has risen above $1,800 per ounce.
- Despite the threats posed by pricing pressures caused by supply-chain bottlenecks and increasing energy costs, global stocks have remained resilient. Treasury Secretary Janet Yellen is among those advising that the inflation crisis is only temporary and will subside in the second half of 2022. Investors are concerned that tighter monetary policy to keep inflation under control could increase volatility.
- Traders are also keeping an eye on a delta virus strain breakout in China, which is anticipated to worsen. The country attempted to assuage fears about the economy's slowing with a long official media commentary describing how the government is managing risks and remains confident about meeting its goals for the year.
