5 Things to Know

5 things to know before the stock market opens Tuesday

In this article

1. Stocks set to take a breather after Dow, S&P 500 closing records

Traders on the floor of the New York Stock Exchange.
Source: CNBC

U.S. stock futures fell Tuesday, one day after the Dow Jones Industrial Average and S&P 500 surged to closing records as strong U.S. job growth and solid service sector data raised expectations for a swift recovery in the Covid-damaged economy. The Nasdaq's rise Monday brought the index within 2.8% of its record close in February. Tech stocks got a boost from a continued easing in the 10-year Treasury yield. The rapid spike in market rates in 2021, most recently a run of 14-month highs, knocked growth stocks, many of them tech names, as higher borrowing costs erode the value of future profits and squeeze market valuations.

2. Credit Suisse takes $4.7 billion hit in Archegos fallout

The logo of Swiss bank Credit Suisse is seen at its headquarters in Zurich, Switzerland March 24, 2021.
Arnd Wiegmann | Reuters

Credit Suisse announced several high-level staff departures and proposed a cut to its dividend in the fallout from the Archegos Capital saga. The Swiss-based lender now expects a first-quarter pretax loss of around $960 million, after taking a $4.7 billion charge as a result of the U.S. hedge fund's meltdown. Credit Suisse said its investment bank CEO Brian Chin and Chief Risk and Compliance Officer Lara Warner will step down immediately. Late last month, Credit Suisse was forced to dump a significant amount of stock to sever its ties to the troubled Archegos family office. Japan's Nomura and Wall Street's Goldman Sachs were also forced to sell stocks on behalf of the highly leveraged Archegos.

3. Entire cryptocurrency market value tops $2 trillion for first time

Cryptocurrency mining rigs at a crypto mining farm.
Akos Stiller | Bloomberg via Getty Images

The value of the entire cryptocurrency market topped $2 trillion for the first time Monday, driven by a rally in ether, the second-largest digital coin, which alone has a market value of more than $240 billion. Ether hit an all-time high above $2,150 overnight, in an over 180% year-to-date surge. Ethereum, the blockchain behind ether, is seen as a key platform for decentralized finance applications and nonfungible tokens. Bitcoin accounts for more than $1 trillion of the entire crypto market cap. Last month, the world's biggest digital coin hit a record high of above $61,000 — more than doubling in 2021. It was trading at above $58,800 early Tuesday.

4. Fauci warns against relaxing public health measures as summer approaches

NIH National Institute of Allergy and Infectious Diseases Director Anthony Fauci addresses the daily press briefing at the White House in Washington, January 21, 2021.
Jonathan Ernst | Reuters

White House chief medical advisor Dr. Anthony Fauci warned on Monday that Americans should continue to be vigilant and adhere to public health measures as warmer summer months approach. "You might remember a little bit more than a year ago when we were looking for the summer to rescue us from surges. It was, in fact, the opposite," Fauci said during a White House coronavirus briefing. Fauci also said that Americans should continue to get both doses of the Pfizer and Moderna Covid-19 vaccines, despite a recent study that suggests only one dose may be enough.

5. Schumer says Senate could pass an additional bill without GOP votes

U.S. Senate Majority Leader Chuck Schumer (D-NY) touts Senate Democrats legislative accomplishments as he holds a news conference at the U.S. Capitol in Washington, March 25, 2021.
Jonathan Ernst | Pool | Reuters

According to the office of Senate Majority Leader Chuck Schumer, D-N.Y., the Senate parliamentarian ruled the chamber can use budget reconciliation an additional time to pass legislation without Republican votes. Democrats, who control a 50-50 Senate split by party, will have three opportunities to approve a bill without GOP support before the 2022 midterm elections. Democrats are trying to pass President Joe Biden's more than $2 trillion infrastructure plan, and they aim to push through an economic recovery bill. Senate Minority Leader Mitch McConnell, R-Ky., said his caucus would likely oppose the infrastructure measure due to the price tag and the hike of the U.S. corporate tax rate to 28% to pay for it.

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