OPEC+ CUT BOOSTS ENERGY SHARES AND OIL PRICES
The Organization of the Petroleum Exporting Countries (OPEC+) announced that they have decided to cut oil production by approximately 1.16 million barrels per day. Consequently, the price of oil increased by 5.4% and the stock value of energy companies like Exxon Mobil Corp and Chevron Corp rose as they recorded a premarket trading growth of over 3%.
INFLATION CONCERNS DRIVE TREASURY YIELD INCREASE
The rise in oil prices has caused concern about inflation, which has led to an increase in Treasury yields. As traders anticipate a potential response from the Federal Reserve, they speculate that interest rates may be raised in order to combat inflation. This expectation has caused traders to believe that the Fed may increase the terminal rate, ultimately resulting in higher interest rates in the long-term.
TESLA’S STOCK DROPS DESPITE RECORD CAR DELIVERIES
Tesla recently announced that they achieved their best-ever quarterly vehicle deliveries. However, despite cutting their prices to attract more buyers, their sales growth from the previous quarter was not as high as expected. As a result, Tesla’s stock price dropped by 2%.
MORE LAYOFFS
Following its acquisition of Credit Suisse, UBS plans to reduce its workforce by 20% to 30%, resulting in the layoff of up to 11,000 staff members in Switzerland and 25,000 globally. The two banks collectively employed nearly 125,000 personnel, with almost one-third located in Switzerland.
Meanwhile, McDonald’s closed its U.S. offices temporarily as the company prepares to inform employees about upcoming job cuts. Workers were instructed to work remotely while they wait to find out whether they will keep their jobs. McDonald’s plans to share more details with its employees this week.
SHORT TRADING WEEK
Due to Good Friday being this coming Friday, the US stock markets will only be open Monday through Thursday this week. Even though it’s a short trading week, there are some big reports that will be released this week, including the very important March jobs report.
