5 things to know before the stock market opens Tuesday

S&P 500 futures were lower Tuesday morning, as Wall Street resumes trading following the Memorial Day holiday. Stocks posted strong gains last week, ending seven-week losing streaks for the S&P 500 and Nasdaq Composite and an eight-week slide for the Dow Jones Industrial Average. The S&P 500 and Dow rose 6.5% and 6.2%, respectively, their best weekly advances since November 2020. The tech-heavy Nasdaq was the best-performing major U.S. stock index last week, gaining 6.8%. Stocks were aided in the latter part of last week by quality retail earnings and the Federal Reserve’s favorite inflation measure suggested price pressures in April eased somewhat. In this four-day trading week, Salesforce and Hewlett Packard Enterprise headline the earnings calendar, while the May jobs report is due out Friday.

U.S. Treasury yields climbed Tuesday, with the yield on the benchmark 10-year note rising as high as 10 basis points to reach 2.855%. As of 7:20 a.m. ET, the 10-year Treasury note yield stood around 2.812%. Bond yields move inversely to prices. The action in the bond market came as preliminary data for May showed euro zone inflation hitting yet another record high and oil prices rose.

Investors also were digesting comments Monday from Federal Reserve Governor Christopher Waller, who said in a speech he supports the central bank taking interest rates above neutral by the end of this year. The so-called neutral rate is the level at which Fed policy neither restricts nor supports economic growth.

Crude prices rose Tuesday, as European Union leaders reached a deal late Monday to ban about 90% of Russian oil imports by the end of the year. U.S. benchmark West Texas Intermediate crude futures for July climbed more than 3%, trading as high as $119.43 per barrel. The August contract for international benchmark Brent crude was higher by about 1.65% to $119.54 per barrel. The EU’s latest sanctions package, which still needs to be finalized, is the bloc’s sixth targeting Russia over its invasion of Ukraine in late February. About three-quarters of Russia’s crude imports will be immediately impacted, according to EU estimates, rising to 90% by year-end. A Russian official said Moscow will “find other importers” for its oil in response to the EU’s partial embargo.

Shanghai’s coronavirus lockdown is set to be lifted Wednesday, after two months of restrictions that upended life in China’s most populous city, angering residents and hampering the world’s second-largest economy. According to Reuters, about 22.5 million people who live in low-risk areas will see their strict Covid curbs lifted Wednesday. Although gyms and movie theaters will stay closed for now, stores can operate at 75% of capacity, The Associated Press reported. Full service of public transportation on buses and subways will resume. Shanghai’s lockdown came as part of China’s so-called zero Covid policy.