Here are the most important news, trends and analysis that investors need to start their trading day:
1. Dow set to rebound after Monday’s sharp decline
A trader works on the floor of the New York Stock Exchange (NYSE) in New York, U.S., on Monday, Sept. 20, 2021.
Michael Nagle | Bloomberg | Getty Images
Dow futures rebounded 260 points Tuesday, one day after the 30-stock average slumped more than double that amidst Wall Street’s September slide. The Dow ended 614 points, or nearly 1.8%, lower in its worst session since July. The Dow was down 971 points at Monday’s low, which had been almost 5.7% below last month’s intraday all-time high. Investor concern included risks over this week’s Federal Reserve meeting, elevated Covid cases in the U.S., debt ceiling brinkmanship in Washington, and possible financial market contagion from embattled Chinese developer Evergrande. The Nasdaq and S&P 500 on Monday had their worst days since May, sinking 2.2% and 1.7%, respectively. Both were also off more than 5% from their all-time intraday highs from earlier this month.
2. Fed to get new housing data as meeting begins
New townhomes are seen under construction while building material supplies are in high demand in Tampa, Florida, May 5, 2021.
Octavio Jones | Reuters
The Fed gets a read on the real estate market at 8:30 a.m. ET as the monetary policymakers begin their two-day September meeting. Economists expect August housing starts to have increased 1% after a 7% drop in July. Building permits are seen falling 2.1% in August compared with a 2.6% increase in July. Central bankers will put that data into the mix as they consider when to start tapering their massive Covid-era bond purchases. Hotter inflation, which Fed Chairman Jerome Powell sees as temporary, will be weighed against a recovering economy. However, a big disappointment in August job growth could keep the Fed at bay a little longer. Central bankers release their policy statement Wednesday, followed by a Powell news conference.
3. Democrats pair debt ceiling, spending in one bill
Speaker of the House Nancy Pelosi, D-Calif., conducts news conference in the Capitol Visitor Center with House Democrats on achievements including the For The People Act and the agenda for the remainder of the year, on Friday, July 30, 2021.
Tom Williams | CQ-Roll Call, Inc. | Getty Images
Democratic congressional leaders said they will try to pass a bill that prevents a government shutdown and suspends the U.S. debt limit through the end of 2022. They’re trying to simultaneously dodge two possible crises. Congress faces a Sept. 30 deadline to fund the federal government. Treasury Secretary Janet Yellen has told lawmakers the U.S. will likely not be able to pay its bills sometime in October if lawmakers don’t suspend or raise the debt ceiling. Senate Minority Leader Mitch McConnell, R-Ky., has been trying to force Democrats to use their slim Senate and House majorities to deal with the debt ceiling on their own.
4. Biden to…
Read More: 5 things to know before the stock market opens Tuesday, Sept 21