Major market averages opened lower Monday morning as investors geared up for the start of a holiday-shortened week.
In its early days, the S&P 500 (SP500) -0.2%,Dow(DJI) was -0.1%Nasdaq Composite (Comp:IND) was -0.5%.
“The most exciting event” “It happens after the market actually closes for the month, the first quarter is over, and the dust has cleared on the earnings side,” said Jim Reid of Deutsche Bank. Friday, when the bond and stock markets close. ”
Since Friday is not a federal holiday, Federal Reserve Chairman Jay Powell is also scheduled to speak.
“At Chairman Powell's press conference (last week), he said that the month-on-month rate of change in core PCE could be 'well below 30 bps' by the end of the month,” Reid said. “If you just take his word for it, there will be downside risk.”
The rater was higher. The 10-year US Treasury yield (US10Y) rose 3 basis points to 4.23%. The two-year bond yield (US2Y) rose 2 basis points to 4.61%.
New home sales are scheduled for February soon. The consensus is to increase the annual interest rate to $675,000.
“Sales are expected to be broadly similar to 2018 and 2019 levels,” UBS's Paul Donovan said. “This suggests a decline in interest rate sensitivity in the U.S. economy. Housing is traditionally an interest rate sensitive sector, but sales are still on par with times when real and nominal interest rates were much lower.”