Here are the key news, trends, and analysis investors need to start their trading day:
1. Dow is set to rebound after falling sharply on Monday
A trader works on the floor of the New York Stock Exchange (NYSE) in New York, USA on Monday, September 20, 2021.
Michael Nagel | Bloomberg | Getty Images
Dow futures rebounded more than 200 points on Tuesday, a day after the average of 30 stocks fell about three times during Wall Street’s fall in September. The Dow ended its worst price since July, down 614 points, or nearly 1.8%. The Dow lost 971 points from Monday’s low, nearly 5.7% below its intraday all-time high from the previous month. Investor concerns included risks during the Fed’s meeting this week, increased Covid cases in the US, debt caps in Washington and a possible financial market contagion from competitive Chinese developer Evergrande. The Nasdaq and S&P 500 had their worst days since May on Monday, falling 2.2% and 1.7%, respectively. Both were also more than 5% off their all-time intraday highs earlier this month.
2. The Fed receives healthier home data at the start of the meeting
New townhouses are being built in Tampa, Florida on May 5, 2021 while building materials are in high demand.
Octavio Jones | Reuters
The Fed has read the housing market as policy makers begin their two-day September meeting on Tuesday morning.
- Housing starts in August rose better-than-expected 3.9% to an annualized rate of nearly 1.62 million units, compared to a revised decrease of 6.2% in July.
- Building permits rose 6% to just under 1.73 million in August. Economists had seen a 2.1% drop. The July increase has been revised downwards slightly to 2.2%.
Central bankers will bring this data into the mix when considering when to scale back their massive Covid-era bond purchases. Hotter inflation, which Fed Chairman Jerome Powell sees as temporary, is being weighed against a recovering economy. However, a major disappointment in job growth in August could hold the Fed in check a little longer. Central bankers released their policy statement on Wednesday, followed by a Powell press conference.
3. Democrats combine debt ceiling, spending into one bill
House Speaker Nancy Pelosi, D-California, holds a press conference at the Capitol Visitor Center with House Democrats on Friday, July 30, 2021, on achievements like the For The People Act and the agenda for the remainder of the year .
Tom Williams | CQ Roll Call, Inc. | Getty Images
Democratic leaders in Congress said they would seek to pass a law preventing the government from closing and suspending the U.S. debt ceiling until the end of 2022. You are trying to avoid two possible crises at the same time. Congress faces a September 30 deadline to fund the federal government. Treasury Secretary Janet Yellen has told lawmakers that the US is unlikely to be able to pay its bills at some point in October unless lawmakers suspend or raise the debt ceiling. Senate minority leader Mitch McConnell, R-Ky., Has tried to force the Democrats to use their narrow majorities in the Senate and House of Representatives to tackle the debt ceiling on their own.
4. Biden speaks to the UN about Covid and the climate
US President Joe Biden meets with United Nations Secretary-General Antonio Guterres at the 76th
Kevin Lamarque | Reuters
In his first address to the UN General Assembly as US President, President Joe Biden plans to call on allies to work together on challenges such as Covid and climate change. The speech is scheduled for Tuesday morning. Eight months after his presidency, Biden was out of alignment with allies on the chaotic end of the US war in Afghanistan. He has faced disagreements over how coronavirus vaccines should be shared with developing countries and over pandemic travel restrictions. Biden is also in the middle of a dispute with France over a deal to sell nuclear submarines to Australia.
5. J&J reveals booster dates; Uber raises third quarter outlook
A vial containing the Janssen COVID-19 vaccine from Johnson & Johnson
Pacific Press | LightRakete | Getty Images
Johnson & Johnson is one of the stocks in motion in Tuesday’s pre-trading session. J&J shares rose more than 0.5% after the company said a booster shot of its Covid vaccine in the US is 94% effective when given two months after the first dose. Six months after the first shot, a J&J booster appears to be potentially even more protective. Approximately 14.8 million people in America have received the company’s single-dose vaccine.
Dara Khosrowshahi, CEO of Uber, speaks at a product launch event in San Francisco, California on September 26, 2019.
Philip Pacheco | AFP via Getty Images
Uber’s shares rose about 6% after the ride and food delivery company revised its third quarter outlook upward. Uber now expects adjusted earnings before interest, taxes, depreciation and amortization to range from a loss of $ 25 million to a profit of $ 25 million. Uber previously said it expects adjusted EBITDA for the third quarter to be better than a loss of $ 100 million.
– The Associated Press 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.