Here are the top news, trends, and analysis investors need to start their trading day:
1. The Nasdaq is likely to fall as technology stocks collapse on rising bond yields
A man walks in front of the Nasdaq building in Times Square on March 10, 2021 in New York.
John Smith | Corbis News | Getty Images
Nasdaq futures fell 200 points, or 1.5%, on Friday, the day after the tech-heavy index rose 329 points, or 2.5%, on gains like Apple, Facebook, and Google’s parenting alphabet. As bond yields rose again on Friday, technology stocks resumed their recent decline. The Dow Jones Industrial Average should rise and the S&P 500 should fall after both benchmarks closed at record highs on Thursday as expectations of an economic upturn from the new $ 1.9 trillion coronavirus bailout set sentiment on Wall Street.
2. The yield on 10-year government bonds is recovering to a high for the year
The stock market, tech names in particular, has been taken hostage by the bond market. Recently, when yields are rising, technology stocks are falling, and when yields are falling, technology stocks are rising. The yield on 10-year government bonds, moving in reverse to the price, rose to around 1.6% on Friday, hitting recent one-year highs again. The 10-year return hit as high as 1.62% earlier this month before pulling back. Higher interest rates hurt the value of growth companies’ future earnings and compress their stock valuations. Tame consumer inflation capped bond yields on Thursday. The government reported Friday that February producer prices rose 0.5%, in line with expectations.
3. Biden instructs states to qualify all adults for Covid vaccines by May 1st
President Joe Biden gestures as he speaks in the east room of the White House in Washington, DC, on March 11, 2021, on the anniversary of the start of the Covid-19 pandemic.
Almond Ngan | AFP | Getty Images
President Joe Biden is instructing states to qualify all adults for the coronavirus vaccines by May 1. In his first prime-time address on Thursday, he also said that hopefully Americans should gather in small groups to celebrate July Fourth. Biden’s speech came exactly one year after the pandemic was declared and one year after ex-President Donald Trump’s speech announcing temporary travel bans from Europe to the United States. At the time, Trump downplayed the coronavirus. In contrast, on Thursday evening, Biden emphasized that Covid is still a serious threat. He spoke hours after the bill was signed on the recently passed US $ 1.9 trillion Covid relief bill.
4. Novavax’s vaccine is 96% effective against the original coronavirus
A woman holds a small bottle that reads “Coronavirus COVID-19 Vaccine” and a medical syringe in front of the Novavax logo displayed in this illustration, taken on October 30, 2020.
Given Ruvic | Reuters
Novavax’s Covid-19 vaccine was 96% effective in preventing cases caused by the original version of the coronavirus. There were no cases of serious illness or death among those who received the two-shot vaccine. It was also about 86% effective in protecting against the more contagious variant of the virus, which was first discovered in the UK. However, in a separate, smaller study in South Africa that created another newer, contagious strain, the vaccine was only about 55% effective.
5. Netflix is testing a password-sharing policy
Detail of a man’s hand scrolling through Netflix on an Apple iPad Pro, taken on March 6, 2020.
Phil Barker | Future Publishing | Getty Images
Netflix, which has never had much to do with password sharing, is testing a new policy requiring some users to sign up for a separate account when they’re not watching with the subscriber. “This test is designed to ensure that people using Netflix accounts are eligible,” the company said in a statement, while it found that “hundreds” of tests are conducted on selected customers each year. According to research firm Magid, around 33% of all Netflix users share their password with at least one other person.
– Reuters contributed to this report. For the latest information on the pandemic, visit CNBC’s coronavirus blog.