5 things to know before the stock market opens on Monday, May 23

Here are the most important news, trends and analysis investors need to start their trading day:

Dow futures contract increased 350 points on Monday after Average 30 shares recorded the first eight-week losing streak since 1923. S&P 500 and Nasdaq posted seven consecutive weeks of losses.

• The S&P 500 on Friday plunged into bear market territory. But thanks to an amazing late-session recovery from massive losses, the broad market index actually finished higheravoid closing 20% ​​or more below the previous high.
• Nasdaq fell slightly on Friday, inching up to a 30% drop from its previous high.
• The Dow edged higher on Friday, but is still down 15% from its previous high.
• The Dow and S&P 500 hit all-time highs in January. Nasdaq’s most recent all-time high was in November.

Bond prices fall and higher output Second when stocks rise in price in the money market. The 10-year Treasury yield is trading around the 2.8% level, below the key psychological 3% level, which was broken for the first time since late 2018 earlier this month. It has been going back and forth above and below that mark for weeks out of concern Federal ReserveThe economy’s gradual approach to slowing interest rate hikes and balance sheet cuts will not be enough to keep inflation in check.

• The Fed is expected to release the minutes of its latest policy meeting earlier this month on Wednesday, which resulted in a 50 basis point increase in interest rates, double the increase seen in March. Markets expect rate hikes at all remaining Fed meetings this year.

Chairperson Joe Biden on Monday said he would ready to use military force to defend Taiwan, reminding gratitude from the democratic, self-governing island but harshly criticized by China. In Japan, the second stop on his first tour of Asia since taking office, Biden said he did not expect China to attack Taiwan despite stepping up its military provocations. In recent years. The US has traditionally avoided making such explicit security guarantees to Taiwan – and a White House official later Step back Biden’s comments say they don’t reflect a change of policy.

• Biden also said he was considering easing tariffs on Chinese imports, measures introduced by his predecessor Donald Trump. Biden’s comments on tariffs come after Treasury Secretary Janet Yellen suggests that such a move could help alleviate the rampant inflation that has gripped the US economy.

The international community should have been more supportive of Ukraine in 2014 when Russia illegally annexed Crimea for the first time, Ukrainian President Volodymyr Zelenskyy say second, during a video address at the World Economic Forum in Davos, Switzerland. Zelenskyy called for the imposition of sanctions at the “maximum” level on Russia because war in Ukraine.

• Zelenskyy said that increasing economic sanctions against Moscow would allow other potential aggressors to “know clearly the immediate consequences of their actions.” He also told Davos participants that the world was at a “turning point” and that most was against Russia’s “brute force”.

Pfizer and BioNTechthree doses Covid Vaccines for children 6 months to 5 years old are 80% effective in preventing omicron outbreaks, according to clinical trial results second release. The third dose of the vaccine produced a strong immune response and it was well tolerated by the children in the trial. The companies say the majority of side effects are mild to moderate.

• Pfizer and the Food and Drug Administration initially sought to fast-track the authorization of the first two doses in February. Pfizer delayed its application to wait for data from the third dose after the first two were only 30% to 40% effective.

– by CNBC Sam Meredith, Holly Ellyatt and Spencer Kimball as well as The Associated Press contributed to this report.

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