CNBC Daily Open: Higher manufacturing prices gave markets a bad start to March

This study is from today's CNBC Daily Open, our new, planetary markets newsletter. CNBC Daily Open brings investors up to velocity connected everything they request to know, nary substance wherever they are. Like what you see? You tin subscribe here.

Hawkish Fed officials and higher manufacturing prices gave markets a atrocious commencement to March.

• The 10-year Treasury output broke the 4% level connected Wednesday, though it settled backmost astatine 3.994%. U.S. stocks closed mostly lower, with the Dow Jones Industrial Average finishing unchanged. European markets lost crushed too. Germany's Stoxx 600 mislaid 0.7% arsenic a flash estimation enactment Germany's ostentation rate, measured with the EU's methodology, astatine 9.3%.

• Tesla CEO Elon Musk unveiled his "Master Plan 3" connected the company's Investor Day. Musk talked up a sustainable vigor economy, but didn't springiness specifics connected achieving that goal. Details connected the company's "next gen" conveyance were lacking, too. Shares dropped 1.43% successful regular trading and 3.04% aft hours.

• The U.S. Senate passed a measure overturning a Labor Department rule allowing status money managers to see environmental, social, and firm governance factors erstwhile making concern decisions. President Joe Biden said helium would veto the bill if it comes to his desk.

• Salesforce shares jumped 15.54% successful after-hours trading aft the company's fiscal fourth-quarter net and operating borderline bushed estimates. The unreality bundle shaper has precocious been under unit by activistic investors.

• PRO Greenlight Capital, a hedge fund, enjoyed a instrumentality of 42.3% adjacent erstwhile markets were struggling past year. Founder David Einhorn said he's continuing to stake against "bubble baskets" of stocks this year.

Hawkish sentiment from Federal Reserve officials weighed connected stocks and buoyed Treasury yields, giving markets a disappointing commencement to March.

Minneapolis Federal Reserve President Neel Kashkari said Wednesday he's "open-minded" astir raising involvement rates by either 25 oregon 50 ground points. Kashkari, who is simply a voting subordinate connected the Federal Open Market Committee, added helium mightiness hike rates adjacent further. "I would proceed to propulsion up my argumentation path," helium said. Atlanta Fed President Raphael Bostic said he's comfy with the 5% to 5.25% people projected by the FOMC past twelvemonth – but helium warned rates would request to stay precocious "until good into 2024."

The S&P 500 mislaid 0.47% and the Nasdaq Composite dropped 0.66%. The Dow, however, managed to clasp steady. "We are presently successful the … play betwixt cardinal banks winding down involvement complaint summation cycles and seeing what interaction those increases volition person connected the existent economy," said William Northey, elder concern manager astatine U.S. Bank Wealth Management.

February's ISM Manufacturing Index gave a hint of what that interaction looks like. The speechmaking came successful astatine 47.7%, meaning that the wide manufacturing assemblage contracted successful February — for the 4th consecutive month. Employment successful the assemblage besides dipped. That's bully quality for Fed officials disquieted astir an overheating system and labour market. But the devil's successful the details: The study showed that prices paid by manufacturers accrued from January. Inflation isn't done with the manufacture conscionable yet.

Subscribe here to get this study sent straight to your inbox each greeting earlier markets open.