WHO chief scientist says there could be as many as eight new New Crown vaccines ready to hit the market this year; the U.S. government begins work on a new round of cash handouts directly to nationals after the economic stimulus package was approved; China’s economic data, including retail sales, is positive in the first two months of the year, while Germany, France and Italy, the three largest economies in the European Union, have stopped using AstraZeneca’s New Crown vaccine; media say Biden‘s team is looking at the first major federal government since 1993 tax increase program to finance a long-term U.S. economic recovery plan that is larger than $1.9 trillion.
Faced with the threat of accelerating rising Inflation, investors weighed progress and setbacks in vaccine development and signs of economic recovery as U.S. stocks fell to record highs, led lower by energy stocks dragged down by falling Crude Oil, and U.S. bond prices rebounded as yields moved lower.
The yield on the benchmark 10-year U.S. Treasury note lost 1.62% and 1.61% in successive European sessions, and U.S. stocks fell through 1.6% in early trading to a new daily low, dropping more than 2.4 basis points during the day and further off the intraday high set last Friday when it approached 1.64% since February. the 30-year U.S. bond yield fell more than 2.7 basis points to a new daily low below 2.35%. Investors are waiting for the Fed to announce its latest monetary policy resolution after the two-day meeting on Tuesday and Wednesday this week.
The three major U.S. stock indexes showed mixed performance, with the Dow Jones Industrial Average and the S&P 500 Index opening lower in early trading, brushing a new daily low about two hours after the opening, with the Dow’s maximum intraday loss close to 150 points and the S&P down 0.5% when it brushed a new daily low. The Nasdaq Composite Index turned down at the beginning of the session and then rebounded quickly, and also turned down when the Dow and S&P set new daily lows, once down more than 0.35%, turning up at the end of the morning session.
Of the 11 major sectors of the S&P 500, six were down in early trading, led by a drop of more than 2% in energy, followed by a drop of more than 1% in financials, with other sectors down no more than 0.7%. Industrials, utilities, essential consumer goods and non-essential consumer goods all rose.
It is worth mentioning that although there was no news stimulus, the retail holdout GameStop (GME) had experienced a “flash crash” in early trading, dropping nearly 16% in about 10 minutes after turning down. The other retail holdout, theater giant AMC, opened higher, up more than 29% in early trading; AMC reopened two theaters in Los Angeles on Monday and plans to reopen all the movie theaters in California by Friday.
Airline stocks surged collectively, with United up more than 7% during the session, American Airlines up more than 6%, Alaska Airlines up more than 4% and Delta Air Lines up more than 3%.
Crude oil futures in the Asian market session, European shares before the market had risen more than 1%, Brent crude oil was once back on $ 70, but in the European shares turned down in the middle of the day, the U.S. stocks in early trading to refresh the daily low, the U.S. WTI crude oil fell by more than 2.2% at one point, the decline in the cloth oil had reached 2%.
Some analysts believe that the crude oil selloff may be related to the Biden Administration‘s proposed tax hikes, which could affect corporate profit growth. In addition, the WTI futures spread entered negative territory for the first Time this year, signaling that the market is concerned about the oversupply of crude oil. Some analysts say that Brewer oil above $70 may now be seen as an arbitrage zone.
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