Markets cautious ahead of key inflation data and earnings season.

The Nasdaq, S&P 500, and Dow opened lower as investors focus on corporate earnings and inflation data to be released later this week for clues on the Federal Reserve's policy decision in May. The 10-year Treasury yield was higher, and the 2-year yield gained. Non-farm payrolls data showed that the labor market remained tight, cementing expectations of a 25-basis point rate hike by the Fed. Fed funds futures are currently pricing in ~67% chance of a 25-basis point hike in May, while there's a 33% probability of no hike at all. Fear & Greed Trader believes this week's corporate earnings will help determine the direction of the stock market in the next couple of quarters.