Every day for the past week, stocks have been bad in the final hours of trading, which could be a bad sign for the next day, said JD Kinahan, DT Ameritrate’s chief market strategist. That negative feeling continued Monday as well.
“After a rough start to stocks in 2022, investors are looking for reasons to anticipate a rebound,” Jeff Busbinder, a stock strategist at LPL Financial, said in an email comment.
“After doubling the incidence of infections in March 2020, with no more than 5% in 2021, stocks may need a break,” he added. “However, this tip did not feel very comfortable.”
Lots to digest
Investors also have a lot on their plate this week.
Expectations are only one part of the game. By the end of 2021 the central bank may decide that inflation is too high and rates will rise further – or sooner.
Treasury yields, which monitor interest rate expectations, hit a one-week high on Monday. The 10-year bond gained 1.74% in the afternoon, after passing 1.8% for the first time before the outbreak last week.
Commodity markets are feeling the pressure of rising tensions and analysts believe oil prices could rise if the situation escalates. However, on Monday afternoon, US oil prices fell 2.1% to $ 83.31 a barrel.
– Julia Horowitz of CNN Business contributed to this report.
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