Stocks Rebound, Debt Ceiling, Boeing MAX Test – 5 Things To Know

On Sep 29, 2021

Here are five things you must know for Wednesday, September 29:

1. — Stocks Bounce As Treasury Yields Ease, Tech Gets Boost

U.S. equity futures bounced higher Wednesday, while Treasury bond yields eased from multi-month highs, as investors looked to claw back some of yesterday’s declines while closely tracking negotiations tied to the debt ceiling and ongoing impact of the rolling global power crisis.

Benchmark 10-year note yields slipped to 1.508% in overnight trading as growth concerns, linked to both power cuts in China and surging energy costs in Europe, overtook worries about faster near-term inflation. That move, alongside a bullish outlook from ASML Holding (ASML) – Get ASML Holding NV ADR Report, the a crucial supplier to the global semiconductor sector, is helping tech stocks stage a solid pre-market rebound.

European stocks rebounded from yesterday’s tumble, the biggest since July, with a 1% gain powered by tech and energy shares while Asia, caught in the downdraft from Wall Street’s Wednesday slump, fell 0.75%.

In the U.S., concerns linked to a government shutdown later this week, as well as failure to suspend the nation’s $28.4 trillion debt ceiling, continue to keep bulls in check, however, after another effort by Democratic lawmakers to break a Senate deadlock failed to advance last night.

On Wall Street, futures contracts tied to the Dow Jones Industrial Average, which turned negative for the month after last night’s 570 point slump, are indicating a 215 point opening bell gain, while those linked to the S&P 500 are priced for a solid 32 point advance.

Nasdaq Composite futures suggest a 145 point gain to start the trading session, thanks in part to pre-market advances for Apple (AAPL) – Get Apple Inc. (AAPL) Report, Tesla (TSLA) – Get Tesla Inc Report and Nvidia (NVDA) – Get NVIDIA Corporation Report.

2. — JPMorgan Cautions on ‘Potentially Catastrophic’ Debt Ceiling Failure

JPMorgan CEO Jamie Dimon said he and his colleagues are preparing for a “potentially catastrophic” failure to raise the $28.4 trillion debt ceiling this week as Senate lawmakers continue to bicker into the final hours ahead of tomorrow’s deadline.

“It’s all politics,” he told Reuters Tuesday. “”Every single time this comes up, it gets fixed, but we should never even get this close.”

Senate Republican leader Mitch McConnell has insisted that Democrats, who hold a slim majority in the upper chamber, must pass a debt ceiling increase on their own. Majority leader Chuck Schumer, mindful of the fact that around $5 trillion of the total outstanding debt is the result of Republican spending plans, wants a bipartisan solution.