5 things to know before the stock market opens Monday, Sept 27
Here are the most important news, trends and analysis that investors need to start their trading day:
1. Wall Street looks mixed with just days left in September
The Dow tanked 614 points last Monday. Then a strong two-day rally Wednesday and Thursday added 844 points for a weekly gain. The S&P 500 and the Nasdaq also rose last week. All three stock benchmarks were running more than 1% declines for historically rough September with four day left in the month. The Dow and Nasdaq were more than 2% from their most recent record high closes. The S&P 500 was 1.8% shy of its latest record close.
2. Treasury yields jump ahead of a busy week for Fed’s Powell
Jerome Powell, chairman of the U.S. Federal Reserve, arrives for a Senate Banking Committee hearing in Washington, D.C., on Thursday, July 15, 2021.
Al Drago | Bloomberg | Getty Images
Bond prices fell Monday, pushing the yields on the 10-year and 30-year Treasurys to nearly 1.5% and just over 2%, respectively, to levels last seen in July. Yields move inversely to bond prices. In the week ahead, August durable goods orders data are out Monday at 8:30 a.m. ET. Federal Reserve Chairman Jerome Powell is scheduled to testify before the Senate on Tuesday and the House on Thursday. Powell also appears on a European Central Bank panel with other central bank leaders Wednesday. The Fed soothed markets last week by sending signals of no immediate intentions of removing extraordinary Covid pandemic-era monetary stimulus policies.
3. Votes coming on infrastructure, debt ceiling, federal funding
Speaker of the House Nancy Pelosi, D-Calif., conducts her weekly news conference in the Capitol Visitor Center on Wednesday, September 8, 2021.
Tom Williams | CQ-Roll Call, Inc. | Getty Images
Investors will also be watching Congress this week, as lawmakers attempts to pass a funding plan in time to avert a government shutdown on Friday. The debt ceiling is expected to be part of that debate, but strategists do not expect it to be resolved at the same time. They say this could hang over the markets for several weeks before Congress raises the debt ceiling. As for the $1 trillion bipartisan infrastructure bill, House Speaker Nancy Pelosi expects it to be passed this week. However, voting may be pushed back from Monday’s promised deadline. The Senate has already passed the measure.
4. Tesla CEO Musk praises China for second time this month
Tesla CEO Elon Musk speaks at an opening ceremony for Tesla China-made Model Y program in Shanghai on Jan. 7.
Aly Song | Reuters
Elon Musk reassured Tesla‘s commitment to China, saying the eclectic vehicle maker will continue to expand its investments there. Musk’s comments came in a recorded Q&A-style stream at the World Internet Conference, hosted by the Cyberspace Administration of China. “My frank observation is that China spends a lot of resources and efforts applying the latest digital technologies in different industries,…
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