Here is what you need to know.
Stocks dive following report of crackdown on Chinese companies investing in the US. The Dow Jones industrial average fell 600 points from its highs Tuesday after reports surfaced suggesting the Trump administration could move to block China from investing in certain types of US tech companies.
Global markets are under pressure. Hong Kong’s Hang Seng (-2.5%) led the decline in Asia, and Germany’s DAX (-1.28%) trails in Europe. The S&P 500 is set to open lower by 0.14% near 2,609.
The choppy trading that is rocking stocks is an ominous sign for the future of the bull market. Bank of America Merrill Lynch argues that the uptick in volatility is characteristic of a late-cycle environment – the type that normally precedes significant equity losses.
The 10-year yield is near a 2-month low. The benchmark yield is down 2 basis points at 2.75%, and at its lowest level since the beginning of February. It peaked at 2.95% on February 21.
Xi Jinping and Kim Jong Un met in China on Monday.During the meeting, which was the North Korean leader’s first with a world leader since he assumed power in 2011, Kim reportedly said North Korea was “committed to denuclearization on the peninsula.”
Egg prices are surging into Easter. The wholesale cost of a dozen eggs in the Midwest has jumped to $US2.71, leaving it within reach of the record high of $US2.77 set in August 2015, Bloomberg says, citing US Department of Agriculture data.
Tesla gets downgraded. Moody’s lowered Tesla’s corporate rating one notch to B3, citing the “significant shortfall” in the production of its Model 3 sedan, Reuters reports.
Lululemon gives strong guidance. The athletic-apparel maker beat on both the top and bottom lines and said it expected first-quarter earnings of $US0.44 to $US0.46 a share on revenue of $US612 million to $US617 million.
Earnings reports keep coming. BlackBerry and Walgreens Boot Alliance report ahead of the opening bell, while GameStop releases its quarterly results after markets close.
US economic data flows. Gross domestic product will be released at 8:30 a.m. ET, and pending-home sales will cross the wires at 10 a.m. ET.