- Markets around the world braced for a wave of central bank decisions, with traders weighing the potential consequences of less generous monetary policies in the midst of coronavirus outbreaks and lofty equity valuations.
- The S&P 500 fell from a high, while the tech-heavy Nasdaq 100 underperformed major stock benchmarks. A measure of megacap companies fell, with electric-vehicle maker Tesla falling about 5%.
- Apple fell after the iPhone maker's market value approached $3 trillion. Airlines, cruise lines, and hotels all saw their stock prices plummet. Bonds and the dollar both rose. A bitcoin selloff has brought the world's largest cryptocurrency closer to a critical technical level.
- About 20 central banks are scheduled to hold meetings this week, with the Federal Reserve expected to reduce bond purchases and signal an interest-rate hike in 2022, heralding a historic shift to combat the fastest inflation since the 1980s. The European Central Bank, the Bank of England, and the Bank of Japan are also expected to make monetary policy announcements.
- The long-term price-to-earnings ratio of the S&P 500, which compares the current price to the 10-year average real earnings per share, has reached 37, a level not seen since 2000.
- According to the latest NY Fed consumer survey, inflation expectations among US consumers have reached a new high of 6% for the coming year. According to the study, Americans anticipate faster price increases for items such as rent and food, which account for a large portion of household spending and cannot be easily substituted.
