Dow eases from 800+ point selloff
All 30 Dow components traded lower mid-morning led by Boeing and Dow Chemical. Coke and McDonald’s notched modest gain.
Bitcoin related exchange-traded funds under pressure as cryptos get hammered.
Dow drops 500+ points, S&P hits bear market on recession fears
US stocks tumbled across the board early Monday with the S&P 500 hitting a fresh bear market, down 20% from its January peak, as investors wrestle with rising recession fears and as bond yields climb. The 10-year Treasury yield hit 3.27% – the highest since May 2011. In commodities, oil hovered at the $119 level and gas prices $5.01 per AAA.
The Federal Reserve will begin its two-day meeting on Tuesday with a decision on Wednesday.
S&P nears new bear market
The S&P 500, the broadest measure of stocks, is near a new bear market with the benchmark down 18.7% from its recent peak on January 3, 2022.
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Stocks set up for rocky start to the week
Dow Jones Averages.
Dow Jones Industrial Average futures tumbled around 500 points Monday heading into what may be a volatile week for stocks with the Federal Reserve’s June meeting on Wednesday.
Bitcoin continues to get battered
Bitcoin, the world’s largest crypto currency by market value, continues to get battered falling in tandem with US equities.
Futures at a glance
US equity futures plunged on Monday on fears of a Federal Reserve interest rate hike later this week.
Dow Jones Industrial Average futures are down 551 points, or 1.79%, while Nasdaq futures are lower by 2.81%. The S&P 500 is down 2.23% in premarket trading, and is one pace to enter a bear market.
Oil prices also fell on Monday. West Texas Intermediate crude futures traded at $119 a barrel while Brent Crude futures traded around $120.50 per barrel.
House Republican Rep. DesJarlais to introduce new bill to block Biden student loan relief
Rep. Scott DesJarlais, R-Tenn., is set to introduce a bill that will aim to block President Biden’s student loan forgiveness plan.
“There’s a lot of people out there that took out loans and, you know, maybe didn’t get their dream job, but don’t pay them back,” DesJarlais told FOX Business. “So to somehow decide that they no longer need to have skin in the game, it kind of disincentivizes people from succeeding, in my opinion.”
The bill’s most aggressive provision aims to limit the secretaries of Education and Treasury, as well as the Attorney General, from taking any action toward giving a student loan debt, except for those carried out as part of the Higher Education Act of 1965.
“It may help those people who are irresponsible, but the ones that are out there working and paying taxes — now they’re going to be saddled with the burden of, if you want to call these other people’s mistakes or borrowed money management,” DesJarlais argued.
For more on the story, click here: House Republican Rep. DesJarlais to introduce new bill to block Biden student loan relief
Federal Reserve expected to announce new interest rate hike
The Federal Reserve is widely expected to announce another interest rate hike this week as it looks to tame scorching-hot inflation.
All eyes will be on the Federal Reserve this week, as it will kick off its two-day policy-setting meeting on interest rates this Tuesday.
On Wednesday, the Federal Reserve will announced its decision on interest rates.
US stocks closed Friday after consumer inflation jumped 8.6% to a 40-year high and consumer sentiment sank to an all-time low as tracked by the University of Michigan. The Dow Jones Industrial Average fell 880 points or 2.7%, while the S&P lost 2.9% and the Nasdaq Composite 3.5%. For the week, all three of the major averages fell between 4.6% and 5.6%.