Morning Update (6/13/22)

Morning Update   (6/13/22)

US stock futures pointed to sharp losses at the open on Monday, with the Dow set to open more than 500 points lower, the S&P 500 heading for an over 2% drop and the Nasdaq on course for a 3% slump. Major averages are poised to start the week on a sour note as investors come to terms that the economy will suffer a major hit due to bigger interest rate hikes to curb soaring inflation. 

The short-term 2-year Treasury yield traded above its 10-year counterpart at one point in the session for the first time since April, highlighting recession fears. The Fed is expected to announce at least a 50bps rate increase on Wednesday, after last week’s hotter-than-expected inflation report. 

In premarket trading, leisure and travel shares including Marriot, Hilton and Delta Air Lines and tech companies such as Amazon, Nvidia and Netflix, were down at least 3% each.  Bitcoin slide more than 19% to below $23,500 on Monday, the lowest since December 2020, as investors dumped riskier assets amid lingering concerns about slowing economic growth on a backdrop of high inflation coupled with an aggressive tightening monetary policy.   

The dollar index climbed toward 104.5 on Monday, inching closer to its highest levels in 20 years.  WTI crude futures fell more than 1.5% to below $119 per barrel on Monday, extending losses for the third straight session, as investors were monitoring the covid situation in China and remained concerned that surging inflation may derail growth and impact oil demand.  

Know what you own and why you own it.