Good morning. An inverted yield curve has spooked some — not all — of Wall Street's big name commentators. Plus, today we're explaining why Visa is turning its attention to the booming NFT space.
Advertisement
Here we go.
If this was forwarded to you, sign up here. Download Insider's app here.
1. Experts are divided over the yield curve. This week, the 2-year and 10-year Treasury yields briefly inverted for the first time since 2019. Historically, inversions in the short- and long-term yields have been predictors of sharp economic slowdowns in the US — but there isn't a consensus on Wall Street.
Fundstrat's head of research and stock market bull, Tom Lee, gave three reasons why stocks are actually poised for more upside despite the inversion. To make his case, highlighted the difference between nominal interest rates and real interest rates. The latter, which take into account the rate of inflation, are still in negative territory.
"Right on cue, the 'It Doesn't Matter This Time' white papers are coming out," the DoubleLine Capital CEO tweetedWednesday. "Don't believe them."
The 2-year yield is currently at 2.318%, and the 10-year yield is currently at 2.354%.
Advertisement
In other news:
2. US stocks head for a strong close to the month. But Ukraine, inflation and a hawkish Fed mean the S&P 500 is in the red in Q1. Oil has slumped after reports the US may release a huge amount of crude from its reserves. See what's happening across the markets.
3. Earnings on deck: Aehr Test Systems, Acorn Energy, and Reed's Inc., all reporting.
5. US regulators are taking aim at SPACs. The SEC is lining up rules to make disclosures far more like those used in IPOs. Take a look at the details here.
6. Axie Infinity's owner vows to reimburse victims of the $600 million theft after a hacker pulled off one of the largest crypto heists in history. Users who lost tokens during the massive Ronin Network hack will be reimbursed, said Sky Mavis' COO. Here's the latest update on the token swindle.
9. Bank of America shared which three sectors in healthcare are best positioned for upside during a recession. Physician groups, post-acute care, and hospitals are most resilient to economic pressures, its analysts said. See the 10 healthcare stocks that they have in their sights.
Advertisement
10. Over four million Americans have quit their jobs for nine months straight. Through much of the pandemic, workers have heard they can leave their current position to go make money somewhere else — and they're doing exactly that.
Keep up with the latest markets news throughout your day by checking out The Refresh from Insider, a dynamic audio news brief from the Insider newsroom. Listen here.
NewsletterSIMPLY PUT - where we join the dots to inform and inspire you. Sign up for a weekly brief collating many news items into one untangled thought delivered straight to your mailbox.