Here are the most important news, trends and analysis that investors need to start their trading day:
1. Dow futures drop as history signals a rough rest of September
The Wall St. sign is seen near the New York Stock Exchange (NYSE) in New York City, May 4, 2021.
Brendan McDermid | Reuters
U.S. stock futures fell Friday, marking a key date, Sept. 17, that has historically ushered in a rough patch for the market in an already traditionally tough month. The Dow Jones Industrial Average declined Thursday, though it ended way above session lows. The S&P 500 dipped as well, while the Nasdaq bucked the trend and rose slightly. Despite the September angst, all three benchmarks were tracking for weekly gains. Ahead of Friday’s open, the Dow, S&P 500 and Nasdaq weren’t too far from their recent record closes — about 2.5%, 1.4%, and 1.3% away respectively.
2. Options, futures expirations could add volatility at Friday’s close
Traders work on the floor of the New York Stock Exchange (NYSE) in New York, on Monday, Aug. 23, 2021.
Michael Nagle | Bloomberg | Getty Images
Coinciding with seasonal factors stacked against Wall Street, it’s also “quadruple witching” Friday, the simultaneous expiration of stock options, index options, stock futures and index futures. The Federal Reserve holds its two-day September policy meeting next week, leaving investors already on edge this month to read the tea leaves on when central bankers might start tapering their massive Covid-era bond buying. As of Thursday’s close, the Dow was down 1.7% this month, while the S&P 500 was off 1.1% and the Nasdaq was down 0.5%. However, all three were still way up for the year.
3. Fed chief calls for a review of the central bank’s investment rules
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
Fed Chairman Jerome Powell has called for a review of the central bank’s ethics rules for appropriate financial activities after disclosures that several senior Fed officials held significant investments and others made multimillion-dollar stock trades in 2020. Last year was when monetary policymakers were implementing extraordinary measures to support the crumbling economy during the pandemic. News of the Powell inquiry followed letters sent by Sen. Elizabeth Warren, D-Mass., to the Fed’s regional bank presidents demanding stricter ethics.
4. FDA vaccine advisory panel to meet on Pfizer Covid boosters
Nurse Samantha Reidy gives Alan Kramer, 74, a cancer patient, his Pfizer-BioNTech Covid-19 booster shot at Hartford Hospital in Hartford, Connecticut on August 24, 2021.
Joseph Prezioso | AFP | Getty Images
A key part of President Joe Biden‘s plan to combat Covid could be in jeopardy as an FDA vaccine advisory committee meets Friday to debate and vote on Pfizer‘s application to offer vaccine booster shots to the general public. The meeting comes as some scientists, including…
Read More: 5 things to know before the stock market opens Friday, Sept 17