- Inflation expectations in the US are rising in the short to medium term. The Fed's Consumer Expectations Survey, released, suggests that inflation in terms of the next 12 months will be 3.3% (vs. a reading of 3% the previous month). The highest increase in p.p. from the previous month was recorded in expectations for education price growth, which is projected at 9% (vs. 7.5% a month earlier).
- US 10-year bond yields are down slightly to 4.47%. 2-year yields also record a decline weakened, however, by data on inflation expectations. The value of 2-year yields today is around 4.85%.
- U.S. indices are showing mixed sentiment ahead of a week of key inflation-related data. The S&P 500, after gains at the beginning of the session, records a slight decline and returns to its opening value, the Dow Jones Industrial loses 0.2%.
- Better sentiment is seen on the indexes of smaller companies. The Russell 2000 Index is up 0.44%, and the Russell 3000 Index is back to its opening price.
- The strongest-growing company in the Russell 3000 index was GameStop, which rose sharply at the open after a tweet by "Roaring Kitty", a trader associated with a previous short-squeeze on the company's shares, which occurred in 2021. The tweet was the trader's first activity on the account after a 3-year absence. The company shot up more than 60% at the opening to gain as much as 110% at its peak. Due to excessive volatility, trading in the company's shares was halted in places, and now the company's stock is trading normalized at around $28.7, representing an approximate 64% increase.
- The amplified movement in the so-called meme stocks has also pushed up the valuation of AMC, which is gaining more than 48% in today's session.
- Novavax, which gained almost 100% on Friday following news of a deal by Sanofi, also continued its gains. The deal between the companies marked an investment of $1.2 billion. Today Novavax is gaining almost 50%, which means that in just two days the company has increased its market capitalization by 180%.
- According to Bloomberg, Apple and Microsoft are getting closer to finalizing a deal to use OpenAI tools in the latest iPhones. The news pushes the stock price of Alphabet, Microsoft's competitor in the AI arena, down 0.8%.
- The mood on the European stock market remains slightly negative. The DAX loses 0.16%, CAC 40 -0.12%, and FTSE 100 is down -0.22%. Thus, the British index ended its uninterrupted upward streak since May 2.
- The best performing currency in the FX market today is the British pound. Large declines are seen in pairs related to the Japanese yen and the Swiss franc.
- There was also a lot going on in the commodity market. Nearly 20% declines were seen in cocoa today, linked to further forecasts of slightly heavier rainfall in Ghana, Cameroon, Nigeria and Ivory Coast. The heavier rainfall eases concerns about a shortage of the commodity on the market.
- The price of wheat rose 4% today along with concerns about supplies from Russia. The latest projections suggest that demand will far outstrip supply, with the U.S. Department of Agriculture predicting the smallest end-of-season inventory levels in the past eight years.
- Nearly 4.5% gains are also seen in the natural gas and industrial metals markets. Gold, on the other hand, is losing more than 1%.
- The crypto market is inching upward. Bitcoin gains 2.5% and is once again trying to return above the $63,000 barrier. At this point, retests of this zone are proving unsuccessful.
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