Here is the key news investors need to start the trading day:
1. The markets are waiting for fireworks in the second half of the year
Equities will start the second half of the year with a shortened trading day. Markets will close ahead of the July 4 holiday at 1:00pm ET and remain closed through Tuesday. Equities had a strong first half of the year – even if the gains in the major indices varied. Hopes for artificial intelligence helped push the tech industry up 31.7% in the first half Nasdaq. The S&P 500 rose 15.9%, but the Dow Jones Industrial Average with an increase of 3.8%. As the second half of the year begins, traders will be keeping an eye on June jobs data, which is due out on Friday. Follow live market updates here.
2. Yellen travels to China
Treasury Secretary Janet Yellen is due to meet top Chinese officials in Beijing this week. Their trip comes at a time when the US is looking to increase engagement with China amid years of heightened rivalry between the world’s two largest economies. The US is reportedly considering restrictions on AI chip exports from China in what would be just the latest salvo in a long economic dispute between the nations. The Treasury Department said Yellen will speak to Chinese officials about “how important it is for our countries — as the world’s two largest economies — to responsibly manage our relationships, communicate directly on areas of concern, and work together to address global challenges.” The Treasury Secretary outlined her priorities for US-China relations earlier this year.
3. Tesla deliveries are increasing
Tesla Deliveries rose sharply in the second quarter. The company delivered 466,140 vehicles during the period, an 83% increase from a year earlier. The total value exceeded Wall Street expectations. The surge comes as a result of the electric-car maker’s efforts to increase production capacity and comes after it offered stimulus to boost sales in the US
4. Flight delay flooding
Storms – and the staff shortages that often accompany them – led to a cascade of flight delays during the busy July 4 travel season. More than 42,000 flights were delayed and more than 7,900 were canceled from last Saturday to Friday. United had a worse time than its rivals, prompting the airline to offer 30,000 frequent flyer miles to its most troubled passengers. It is even considering adjusting its schedule after the difficult period.
5. A subsequent period of the Supreme Court
The conservative-majority Supreme Court on Friday approved a term that will have a massive impact on millions of Americans for years to come. It opposed affirmative action on college admissions, a decision that not only influences whether black students are admitted to universities, but could also influence hiring decisions in companies. The court ruled in favor of a web designer who refused to work on same-sex weddings – an opinion that could impact how companies treat other protected groups. It has also scuppered President Joe Biden’s plan to waive up to $20,000 per borrower on state student loans, as millions of Americans begin to factor the resumption of loan payments into budgets already stretched by stubborn inflation.
– CNBC’s Samantha Subin, Fred Imbert, Christine Wang, Lora Kolodny, Leslie Josephs, Dan Mangan and Annie Nova contributed to this report.
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