5 things to know before the stock market opens on February 26, 2021

The following is the most important news, trends and analysis that investors need to start their trading day:

US equities futures were troubled as technology stocks tried to recover from Thursday’s 3.5-day Nasdaq defeat by the worst one-day performance since October. . Tesla fell slightly again in the pre-market on Friday, a day after sinking 8% in a brutal week. Thursday’s Dow Jones industrial average sank 559 points, or 1.8%, from the previous session’s record high. The Dow had its worst day in almost a month and also the S&P 500, which lost almost 2.5%. The culprit of the sale was the rapid rise in bond yields.

All three stock benchmarks were tracking weekly losses. Before the last trading day in February, the Nasdaq was holding on to a gain for the month, which started strong. The Nasdaq fell nearly 7% from its February 12 record high. The Dow and S&P 500 remain strong in the green throughout the month. However, the S&P 500 fell almost 2.7% from its record high, also on 12 February.

The ten-year Treasury yield fell on Friday morning, but remained above 1.4%, after rising to 1.6% in the previous session to its highest level since February 2020 and more than 0.5% higher since the end of January. The rise in yield to ten years, which is used as a benchmark for mortgage rates and car loans, has been driven by expectations of improving economic conditions as vaccines against coronavirus, as well as for fears of higher inflation.

Concern over inflation is estimated to think that the $ 1.9 trillion Covid stimulus bill (which is seen passing the chamber on Friday), in addition to accelerating growth, could overheat the economy . Capitol Hill Democrats are trying to push their relief measure, including raising the federal minimum wage to $ 15 an hour, without Republican Party support. However, a key, pro-government official, the Senate MP, ruled that Democrats cannot include raising the minimum wage in the bill. The decision means the Senate will likely pass a different version of the bill that the House and representatives will have to approve the plan a second time.

On Friday, a key FDA advisory panel will vote on whether to recommend the approval of the single-shot Covid vaccine from Johnson & Johnson for emergency use, which would help pave the way for a third preventive treatment for The United States, while the full FDA does not have to follow the vaccine committee’s recommendation, often does. During similar Pfizer and Moderna vaccine applications, the FDA authorized the two-shot regimes of these companies a day after the group of external medical advisers endorsed the emergency use authorization.

As there are more and more U.S. vaccinations and the economy continues to open more fully, companies like DoorDash, which has benefited from the home-stay business, could be hurt. In its first report as a public company, the food delivery service told shareholders it expects some of the tailwinds it experienced from home stay orders in the United States to occur once the country controls the virus. Shares sank 10% on Friday ahead of the market. Even with this fall, DoorDash would continue to rise nearly 50% from its $ 102-per-share bid price in December. While DoorDash reported late-quarter $ 970 million in revenue in the fourth quarter, which exceeded estimates, it also reported an adjusted loss per share of $ 2.67.

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