S&P 500 Forecast Day Ahead Outlook: Inflation concerns still weigh as big tech resumes decline

Here is what you need to know on Monday, February 22:

Update: US markets open lower with energy stocks continuing to outperform as tech drops. Selected gainers were mostly energy stocks BP ExxonMobil, ConocoPhillips, Chevron, Disney, GE and Oracle. 

Stocks suffering were Tencent, Banco Santander, Novavax, Zillow, Moderna, Tesla, Zoom, PayPal, Apple, Uber, Plug and NIO.

UK Prime Minister Boris Johnson outlines the roadmap for opening the UK economy. Shops, gyms, and hospitality to open by April 12, indoor dining hotels, and attendance at sporting events by May 17.


Stock markets have taken an "as you were" tone so far in Monday's trade. The sell-off continues in Big Tech names, following on from declines seen on Thursday and Friday. So-called inflation concerns linger, with US 10-year yields continuing their ascent, above 1.35% again. Inflation concerns seem over-exaggerated at such low levels and especially given the still negative yields in most of the European sovereigns. However, something has to stall the rally in global stock markets, so investors have decided to focus on inflation. 

As a result, the dollar continues to suffer, with Dollar Index down again on Monday and cable continuing its recent strong performance. The roadmap for the reopening of the UK economy is due to be announced later on Monday by Boris Johnson. Gold continues to benefit from inflationary pressures and oil bucks the two-day losing streak. Commodities remain bid. 

See Forex today

European markets were negative on Monday, with the Dax losing 0.65%, FTSE down 0.7%, and Euro Stoxx dropping 0.8%. 

Asian shares closed mixed with Hang Seng down 1% and Nikkei bucking the trend with a 0.46% gain. 

US futures are all pointing lower, with Dow down 0.5%, S&P down 0.7%, and the Nasdaq 1.2% lower.


S&P 500 news

German IFO beat across all sectors current conditions, business climate, and most importantly, expectations index. 

Chicago National Activity Index hits 0.66 from a forecast of 0.50 and a previous 0.52.

Federal Reserves Robert S. Kaplan is due to speak at 1400 GMT, 9EST.

Goldman Sachs ups its oil price target to 472 as global demand recovers. 

Boeing in trouble again as it says airlines should suspend using some 777 jets after the Denver incident. The UK has just announced it will not allow 777 using Pratt & Whitney engines into its airspace. 

Australia continues its fight with Facebook as legislators say they will not change laws to make Facebook pay for news content.

Bitcoin dropped as Elon Musk continued to tweet about the cryptocurrency. Musk tweeted Bitcoin prices "seem high" at the weekend. This despite Tesla making a reported $1 billion on its Bitcoin investment.

US President Joe Biden tweaks the small business loans scheme to target smaller firms.

AT&T, Walmart, Comcast, Microsoft, and others reduced donations to Republican candidates that support former President Donald Trump.

Gamestop is up again after reports Keith Gill, aka Roaring Kitty, increased his position in Gamestop.

HSBC is rumoured to withdraw from retail banking in the US. 

Goodyear is to buy Copper Tire for $2.8 billion in stock and cash.

Activist investor Elliot Management has taken a stake in Principal financial

Fed's Kaplan says expects some firming in inflation.

Deutsche upgraded the airline sector in a note issued Monday. Picking United, Delta, Southwest, and JetBlue and upgrading them to Buy.

Ups and Downs

Deere was increased to a $403 price target by Credit Suisse.

Snap was upgraded by Morgan Stanley.

Target had its price target increased to $260 from Bank of America.

General Electric was increased at Goldman Sachs.

Airbnb was upgraded at Loop to a buy rating.


Stocks covered at FXStreet


The author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

This article is for information purposes only. The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice. It is important to perform your own research before making any investment and take independent advice from a registered investment advisor. 

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to accuracy, completeness, or the suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. The author will not be held responsible for information that is found at the end of links posted on this page. 











Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

Are you new to trading or have been trading for a while and you feel stuck?

Try with us!
Become Premium!

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD skyrockets to 1.2150 on poor US jobs figures

EUR/USD has hit a new multi-month peak above 1.2150 after the US reported an increase of only 266,000 jobs in April against nearly one million expected. The dollar is under immense pressure. 


GBP/USD soars toward 1.40 after disappointing Nonfarm Payrolls

GBP/USD has been extending its gains after the US Nonfarm Payrolls badly disappointed with an increase of only 266,000 jobs in April, nearing 1.40. Earlier, sterling benefited from the UK Conservative Party's gains in local elections. 


XAU/USD soars above $1,835 after weak Nonfarm Payrolls

Gold has leaped above $1,835 after the US reported an increase of only 266K jobs in April, far below expectations. Lower US yields support the precious metal.

Gold News

Judge reaffirms order SEC must produce documents on Bitcoin, Ether and XRP in Ripple case

Ripple's victory granted the firm access to the SEC's documents on the three leading cryptocurrencies. The regulatory agency recently denied the possession of these documents.

More Dogecoin News

S&P 500 and Nasdaq: Can the Fed pump anymore after weak jobs report

Well, that was an interesting jobs report. Not too many people were forecasting that one. Just in case you missed it NFP were forecast to come in around the 1 million jobs gained but instead the US only added 266k.

Read more