5 issues you need to know earlier than the inventory market opens on Wednesday September 29th
Here are the top news, trends, and analysis investors need to start their trading day:
1. Nasdaq will rebound from a 2.8% decline as bond yields are moderate
A view of the New York Stock Exchange building on Wall Street in downtown Manhattan in New York City.
Roy Rochlin | Getty Images Entertainment | Getty Images
US stocks rallied higher in the premarket on Wednesday as the rise in bond yields subsided. The rise in 10-year Treasury yields to a three-month high of over 1.567% caused tech stocks to tumble on Tuesday. The Nasdaq lost 2.8%. Large tech and growth stocks are sensitive to higher interest rates as their high valuations are based on future growth and cash flow. The S&P 500 lost 2%. The Dow Jones Industrial Average fell 569 points, or 1.6%. With two days left in September, the Dow lost 3%; the S&P 500 was below 3.7%; and the Nasdaq was down nearly 4.7% for stocks in that historically bad month.
2. Biden steps into a $ 3.5 trillion plan as a shutdown and debt default threatens
President Joe Biden canceled a trip to Chicago that should focus on Covid vaccinations so he can stay at the White House on Wednesday to try to build support for his party’s $ 3.5 trillion budget plan. The Democratic leaders want to use their narrow majorities in the House and Senate to pass the package of spending on the social safety net without the support of the GOP.
- Biden met with negative centrist Senate Democrats Joe Manchin and Kyrsten Sinema on Tuesday.
- Progress on the Democratic budget move could determine when the House of Representatives will vote on the $ 1 trillion infrastructure bill passed by the Senate.
- Also at stake is the immediate need to fund the federal government beyond the end of the budget year on Thursday to avoid a shutdown and raise the country’s debt ceiling in the coming weeks to avoid a default.
3. Almost 600 United employees face dismissal because of the Covid vaccine mandate
A United Airlines passenger aircraft lands at Newark Liberty International Airport, New Jersey, USA on December 6, 2019.
Chris Helgren | Reuters
United Airlines says 593 employees face dismissal for failing to comply with the airline’s Covid vaccination policy, one of the strictest regulations of any US company. More than 96% of United’s 67,000 employees in the United States met vaccine requirements. The deadline for submitting the vaccination certificate ended late Monday. Around 2,000 United employees requested exemptions from the mandate for religious or medical reasons. When announcing the exceptions this summer, the Chicago-based airline said employees would be temporarily on unpaid leave with exceptions.
4. Lucid begins production of its flagship Air sedan prior to delivery to customers
People test the Dream Edition P and Dream Edition R electric vehicles at the Lucid Motors plant in Casa Grande, Arizona on September 28, 2021.
Caitlin O’Hara | Reuters
Lucid has started production of its first electric vehicles for customers, with deliveries scheduled to begin late next month. The milestone is crucial for the EV start-up, which debuted on the Nasdaq in July through a SPAC merger. It is considered a front runner in competition with Tesla. The top-end Lucid Air Dream Edition will be available in late October, followed by cheaper models. Lucid said it received more than 13,000 reservations. The company announced to investors in July that it is projected to produce 20,000 Lucid Air sedans in 2022 and generate sales of more than $ 2.2 billion. Lucid’s shares rose 7% in the premarket.
5. Elon Musk Says US Government Should Avoid Regulating Cryptocurrencies
Elon Musk, CEO of Tesla, stands in the foundry of the Tesla Gigafactory during a press event. Year.
Patrick Pleul | Image Alliance | Image Alliance | Getty Images
Tesla CEO Elon Musk said the U.S. government should stay away from attempts to regulate cryptocurrencies. “I think it is not possible to destroy crypto, but it is possible for governments to slow down its development,” Musk told the Code Conference on Tuesday. Musk, who frequently announced his support for digital coins on Twitter, responded to a question from New York Times columnist Kara Swisher. Tesla said earlier this year that it bought bitcoin to “maximize the returns on our cash.”
– Associated Press and Reuters contributed to this report. Follow the whole market like a pro on CNBC Pro. Get the latest on the pandemic with coronavirus coverage from CNBC.