Shares fell early on Monday morning as Wall Street seemed to shake off a losing week.

Futures associated with the S&P 500 index fell by 0.8% and futures on the Nasdaq 100 by 1.3%. The Dow Jones Industrial Average Futures fell 158 points, or almost 0.5%.


The move came as US government bond yields reached a new three-year high overnight. On Sunday night, the 10-year Treasury yield reached 2.7741%, the highest point since the beginning of 2019. At the beginning of the week on Monday morning, it rose by 2.76%. Yields move indirectly with prices and 1 basis point equals 0.01%.


Twitter's share price fell in pre-marketing trading on Monday after CEO Parag Agrawal revealed that Elon Musk had abandoned his plan to join the company's board of directors. Shares of a social media company fell more than 8% before some losses recovered. at 7:56 ET shares fell 2.4%. Wall Street is starting a negative week and the technology sector is a source of concern. The technology-intensive Nasdaq Composite fell 3.9% last week, while the S&P 500 and Dow fell 1.3% and 0.3%, respectively.


The healthcare sector is a bright spot, gaining more than 3%.

This week is likely to be the driving force of the market in the fight against inflation. Investors will see new data, the consumer price index for March on Tuesday and the producer price index after Wednesday. Cleveland Fed Chair Loretta Mester told CBS Face the Nation on Sunday that she still believes the Fed can control inflation without causing major economic damage.


"If you look at the risks that are happening in the world and in the economy, there is an increased risk [of recession]," he said. "However, I remain optimistic and I am confident that my modal forecast for what will happen this year is that the expansion will continue."


Mester added that Covid's closures in China would "exacerbate" supply chain problems that contributed to inflation in the United States.

Investors will also monitor developments in Ukraine. The Russian attack on the country caused a turnaround in the markets for oil and other commodities, which subsequently disrupted stocks.


At the end of this week, the profit period for the first quarter will accelerate as several large banks and airlines report sales. On Wednesday, JPMorgan and Delta Air Lines will announce their sales before two o'clock. Citigroup, Goldman Sachs, Morgan Stanley and Wells Fargo are expected to report on Thursday before the markets open.