Here are the top news, trends, and analysis investors need to start their trading day:
1. Nasdaq futures decline as rising bond yields hit tech
The Nasdaq logo will be displayed in the Nasdaq Market in New York on September 2, 2015.
Brendan McDermid | Reuters
US stocks slipped in the premarket on Tuesday, suggesting further September losses with only three days left in one of the historically weakest months of the year.
- Nasdaq futures were down 200 points, or 1.5%. S&P futures were down almost 1%. Dow futures lost nearly 0.5%. The Nasdaq and S&P 500 fell on Monday. The Dow Jones Industrial Average rose slightly. Monday’s divergence came as government bond yields rose.
- The 10-year government bond yield, which rose on economic optimism and inflation fears, stayed above 1.5% on Tuesday, returning to levels not seen since June. Higher bond yields moving in the opposite direction of price can put pressure on technology stocks by exposing their high valuations.
- However, energy stocks were higher in pre-trading hours as U.S. oil prices rose about 1% to about $ 76 a barrel, nearly a three-year high. U.S. oil prices rose 77% this year as Covid-disrupted business continued to recover.
2. Fed Powell confirms that inflation may last longer
Federal Reserve Chairman Jerome Powell testifies during a hearing of the U.S. House Oversight and Reform Selection Subcommittee on the Coronavirus Crisis on June 22, 2021 on Capitol Hill in Washington, United States.
Graeme Jennings | Reuters
Federal Reserve Chairman Jerome Powell warned lawmakers in a speech prepared for the Senate Banking Committee hearing on Tuesday that the causes of the recent spike in inflation could last longer than expected. The central bank governor said economic growth “continued to pick up” but was faced with inflation caused by supply chain bottlenecks and other factors. The remarks are part of the mandatory testimony Powell is required to make to Congress regarding the Fed’s economic response to the Covid pandemic. He will go before the House of Representatives Financial Services Committee on Thursday.
3. Pfizer urges the FDA to approve the Covid vaccine for children between the ages of 5 and 11
A Pfizer-BioNTech Covid-19 vaccine vial will be given on Jan.
Robyn Beck | AFP | Getty Images
Pfizer announced Tuesday that it has asked the FDA to clear its Covid vaccine for emergency use in children aged 5-11. Last week, US company Pfizer and its German partner BioNTech said in a clinical study in children of this age group that a smaller two-dose dose is safe and produces a “robust” immune response. The application to U.S. health regulators comes because infections in young children have risen and peaked in early September, according to the American Academy of Pediatrics.
4. Senate GOP blocks government funding bill, debt ceiling suspension
Senate Minority Leader Mitch McConnell (R-KY) answers questions in the U.S. Capitol after the Republican lunch on September 21, 2021 in Washington, DC.
Win McNamee | Getty Images
Senate Republicans blocked a House of Representatives bill that would prevent the federal government from shutting down and a possible default on US debt. Legislators must pass a budget bill by Thursday to avoid a shutdown and suspend or increase the debt ceiling at some point in the coming weeks to prevent a default. The Democrats may be forced to set the debt ceiling themselves, possibly as part of their up to $ 3.5 trillion budget adjustment bill.
5. Ford and SK Innovation spend $ 11 billion on new US plants
A battery manufacturing complex that US automaker Ford Motor Co and its South Korean battery partner SK Innovation plan to build in Kentucky and open in 2025 can be seen in an artist version that was released on September 27, 2021.
Ford Motor Co | Handout | via Reuters
Ford shares rose 2.7% on Monday and rose another 3.5% before the IPO. The US automaker and South Korea-based battery supplier SK Innovation announced it will invest more than $ 11.4 billion in new US facilities that will create nearly 11,000 jobs for the production of electric vehicles and batteries. Ford does not expect to take on additional debt to fund the plans, according to CEO Jim Farley. He said the steps that are part of his turnaround plans at Ford will be funded from company profits.
– 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.