Here are the key news, trends, and analysis investors need to start their trading day:
1. Dow to rise after worst weekly loss since October
Traders on the floor of the New York Stock Exchange.
Dow futures rebounded about 200 points Monday after the 30-stock average posted its worst weekly drop since October as investors and traders sold on concerns that the Federal Reserve might start rate hike earlier than expected. The Dow lost 533 points, or nearly 1.6%, on Friday, ending a five-session losing streak of nearly 3.5%. The S&P 500, which was down 1.3% on Friday, fell four days in a row, down 1.9% weekly. The Nasdaq was down less than 1% on Friday but only lost about 0.3% for the week.
Federal Reserve Chairman Jerome Powell during a House Financial Services Committee hearing in Washington on December 2, 2020.
Swimming pool | Getty Images News | Getty Images
The Fed raised its inflation forecast last Wednesday and announced two rate hikes for 2023. Fed chairman Jerome Powell said central bankers are considering scaling back their massive Covid-era bond purchases. Fed spokesmen will get a lot of attention this week, including Powell’s congressional statement on Tuesday. The US 10-year Treasury yield continued to decline from last week’s Fed-driven surge, trading just above 1.4% early Monday. It fell briefly to 1.354%, the lowest level since the end of February.
2. Bitcoin drops as China expands crackdown on crypto mining
A bitcoin mine near Kongyuxiang, Sichuan, China on August 12, 2016.
Paul Ratje | The Washington Post | Getty Images
Bitcoin fell 7% on Monday, trading below $ 33,000 for the first time in nearly two weeks after reports that China’s crackdown on cryptocurrency mining extended to southwest Sichuan province. This follows similar developments in China’s Inner Mongolia and Yunnan regions, as well as calls from Beijing to stop crypto mining over concerns about massive energy consumption. The Communist Party-backed Global Times estimates that more than 90% of China’s bitcoin mining capacity has been shut down.
3. Prime Day begins as the retail industry faces supply chain disruptions
Amazon’s Prime Day began on Monday. Prime Day 2020, postponed to October due to the pandemic, pulled in $ 10.4 billion, according to Digital Commerce 360, a 45% increase from the two-day event last year. This year’s Prime Day takes place as retailers grapple with widespread global supply chain disruptions. Several other major retailers – including Walmart, Target, Kohl’s, Macy’s, and Costco – are holding competing sales events this week.
4. American Airlines will cancel 100 more flights on Monday
American Airlines planes at LaGuardia Airport
Leslie Josephs | CNBC
As travel demand soars to pre-pandemic levels, American Airlines canceled 100 more flights on Monday after hundreds were scrapped over the weekend due to staff shortages, maintenance, and other issues. American said it is cutting its overall plan by about 1% by mid-July to ease the burden on its operations. The airline made some of its recent problems due to scheduling complications stemming from the bad weather at its Charlotte and Dallas / Fort Worth hubs in the first half of June. American is also rushing to train any pilots it has put on leave between two federal aid packages banning layoffs, as well as Airmen due for regular recurring training.
5th Tokyo Olympics to allow 10,000 local fans in the venues
Visitors try to take photos in front of the Olympic Rings Monument in front of the Japan Olympic Committee (JOC) headquarters near the National Stadium, the main stadium for the 2020 Tokyo Olympics which is due to coronavirus disease (COVID-19) 2021) outbreak, in Tokyo, Japan, May 30, 2021.
Issei Kato | Reuters
The Tokyo Olympics will allow some local fans to compete in the Summer Games if they open in just over a month. Foreign fans were banned a few months ago. For all Olympic venues, the organizers set a capacity limit of 50% to a maximum of 10,000 fans. The decision contradicts the country’s top medical advisor, who recommended last week that the Olympics be the safest way to hold the Olympics without fans during the pandemic. Japan’s prime minister, who favored admitting fans, said ahead of the official announcement that local fans would be banned if conditions change. The Tokyo Games are slated to open on July 23rd.
Disclosure: CNBC parent NBCUniversal owns NBC Sports and NBC Olympics. NBC Olympics holds the U.S. broadcast rights to all Summer and Winter Games through 2032.
– CNBC’s Leslie Josephs and The Associated Press contributed to this report. Follow all market activity like a pro on CNBC Pro. Get the latest on the pandemic with coronavirus coverage from CNBC.