The stock market rally extended its strong gains to start the week, but then reversed slightly lower. Crude oil prices plunged late in the week as President Biden announced a big, extended tap of the emergency oil reserve. The jobs report and inflation data bolstered the case for big Fed rate hikes at upcoming meetings. Xpeng (XPEV) led a rebound in China EV sales while General Motors (GM) reported a big first-quarter sales drop due to supply woes. Tesla (TSLA) jumped on a stock-split plan. The two-year Treasury yield rose above the 10-year yield, inverting the yield curve.
Market Rally Hits Resistance
The stock market rally ran up to start the week, but the major indexes reversed for modest losses as of Friday afternoon. Crude oil prices tumbled, testing the $100 a barrel level. The 10-year Treasury yield fell below the 2-year yield, inverting a major part of the curve. Some see that as a recession warning.