Here are the most important news, trends and analysis that investors need to start their trading day:
1. Dow futures dropped after starting October with a strong rally
Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., September 29, 2021.
Brendan McDermid | Reuters
U.S. stock futures fell modestly Monday after finishing a rough week with strong rally on the first day of October. The Dow Jones Industrial Average led the way higher Friday, with an advance of 482 points, or 1.4%. The S&P 500 rose 1.2%. The Nasdaq’s 0.8% gain broke a five-session losing streak. The tech-heavy index was more than 5.2% away its latest record close on Sept. 7. The S&P 500 was nearly 4% away from its Sept. 2 record close. The Dow was more than 3.6% away from its Aug. 16 record close.
The month of October has a reputation for volatility, but the fourth quarter has mostly been a positive time for the market. Many strategists on Wall Street expect stocks to eclipse their recent highs after a rocky period in October. The S&P 500 has averaged outsized gains of 3.9% in the fourth quarter and was up four out of every five times since World War II, according to CFRA. September was the worst month in 2021.
2. U.S. trade rep to vow to enforce ‘phase one’ deal with China
U.S. Trade Representative Katherine Tai testifies before the Senate Appropriations Subcommittee on Commerce, Justice, Science, and Related Agencies during a hearing on the proposed budget for fiscal year 2022 for the Office of the U.S. Trade Representative on Capitol Hill on April 28, 2021 in Washington, DC.
Sarah Silbiger | Getty Images News | Getty Images
Washington must enforce the U.S.-China phase one trade agreement, and it will raise broader policy concerns with Beijing, according to remarks set to be delivered Monday by U.S. Trade Representative Katherine Tai. CNBC reported last week that the top trade advisor would announce that Beijing has not complied with the phase one deal that was reached under former President Donald Trump’s administration. Tai’s speech, at 10 a.m. ET at Washington think-tank, the Center for Strategic and International Studies, will outline the Biden administration’s China trade strategy.
3. Troubled Evergrande set to raise more cash from partial sale
China Evergrande Group’s headquarters in Shenzhen, China’s Guangdong province on Feb. 9, 2021.
Shen Longquan | Visual China Group | Getty Images
Indebted developer China Evergrande Group is set to sell part of its stake in its property services unit, the second asset sale in as many weeks as the liquidity-squeezed Chinese real estate giant scrambles to raise cash. Trading in shares of Evergrande and Evergrande Property Services was halted Monday morning. In a filing with the Hong Kong exchange, Evergrande said it requested the trading halt ahead of an announcement about a “major transaction.” Last week, Evergrande said it will sell a $1.5 billion stake in Shengjing Bank to a state-owned asset management…
Read More: 5 things to know before the stock market opens Monday, Oct. 4