The S&P 500 index slumped and the Russell 2000 small-cap fell 3.6%, with reopening beneficiaries including Carnival Corp. and TripAdvisor Inc., have fallen. An airline stock index fell the most since October.
The dollar strengthened, as the 10-year U.S. Treasury yield slipped for a second day after Federal Reserve Chairman Jerome Powell downplayed the risk of economic growth spurring unwanted inflation. Oil fell below US $ 60 a barrel over fears the market was oversupplied.
As setbacks in the fight against coronaviruses put investors on the back burner, stabilizing bond yields brings some relief from fears that strong US spending will boost inflation and force a tightening of central bank policy . Investors also took stock of stock gains on the first anniversary of the S&P 500 bear market bottom. The gauge has jumped about 75% since then.
“When you consider how far we’ve come, it’s truly astounding,” said Chris Larkin, managing director of trading and investing products at E * Trade Financial. “The market today has some nervousness as it considers what a return to normalcy means for easy monetary policies, fiscal support and interest rates, but for any investor who thinks we are on the verge of go down, it’s important to remember that the market is going. thanks to historically healthy growing pains and there’s still a lot more recovery ahead of us. ”
Elsewhere, European stocks collapsed after Chancellor Angela Merkel locked Germany out over Easter in an attempt to defuse another wave of coronavirus infections. Asian stocks also declined.
Here are some key events to watch out for this week:
The US Treasury holds five- and seven-year debt auctions.
EIA Crude Oil Inventory Report Wednesday.
Friday, data on personal income and expenditure in the United States.
Here are some of the main developments in financial markets:
The S&P 500 Index fell 0.8 percent at 4 p.m. New York time.
The Stoxx Europe 600 index fell 0.2 percent.
The MSCI Asia Pacific Index fell 0.9 percent.
The MSCI Emerging Markets Index fell 1.1%.
The Bloomberg Dollar Spot Index gained 0.6 percent.
The euro fell 0.7 percent to US $ 1.1849.
The British pound weakened 0.8 percent to US $ 1.3752.
The Japanese yen strengthened 0.2 percent to 108.62 per dollar.
The yield on 10-year Treasuries fell eight basis points to 1.62 percent.
Germany’s 10-year yield fell three basis points to -0.34 percent.
Britain’s 10-year yield fell five basis points to 0.76 percent.
West Texas Intermediate crude fell 6.6 percent to US $ 57.48 per barrel.
Gold fell 0.6 percent to US $ 1,727.75 an ounce.
– With the help of Cormac Mullen, Cecile Gutscher and Emily Barrett.