Stocks Give Back Early Gains on Higher Rates

In this buzz: Shares of Didi rose 50% in oversea trading (👍); China around the lifting of some Covid-related restrictions; stocks gave back early gains and much more..

U.S. equities started the week markedly higher as news out of China around the lifting of some Covid-related restrictions and reports that Chinese regulators are wrapping up their investigation into ride hailing giant Didi. Investors took the Didi story as an indication that the country’s crackdown on its tech sector may be ending. Shares of Didi rose 50% in oversea trading.

However, stocks gave back early gains as the trading session progressed and 10-year yields rose above 3% and Bloomberg reported that companies used the relative calm of the market to issue bonds in about a dozen issues. At the end of the day, equities seemed to shake off higher yields in the Treasury market. The DJIA closed almost unchanged while the S&P 500 and the NASDAQ managed small gains.

Traders will be focused on the CPI reading for May on Friday morning. This key inflation gauge is expected to lower than April’s figure. A lower figure could serve as confirmation has peaked and will continue to abate as supply chain problems normalize.