Countdown To Stimulus Vote Begins With Stocks Down On Inflation Fears, Boeing News

Countdown To Stimulus Vote Begins With Stocks Down On Inflation Fears, Boeing News

Key Takeaways:

The new week is starting right where the old one left off: Cloudy, with a chance of more rate concerns.

Before talking rates, let's talk Boeing



BA

(BA), which suffered another blow this weekend on news that some of its 777 jets will be grounded after that engine explosion a few days ago. BA is a Dow Jones Industrial Average ($DJI) component, so it wouldn't be surprising to see the $DJI continue to be pressured maybe more than the other major indices.

Yields Remain Top Concern Heading Toward Stimulus Vote

The 10-year yield jumped again Monday, recently trading above 1.37%. Back at the start of January, it was around 0.9%. This fast rise could weigh on growth stocks, for reasons we'll discuss below. It also appears to be weighing down the overall market, with major indices off pretty sharply ahead of the open.

The S&P 500 Index (SPX) isn't that far from all-time highs, but got a small haircut last week as yields rose and inflation fears flickered. Those inflation concerns aren't necessarily that relevant in the short term, but this could turn really quickly.

We saw some pretty decent-sized swings last week in rates. While you don't