5 things to know before the stock market opens Monday

A trader works on the floor of the New York Stock Exchange (NYSE) on August 3, 2022 in New York.

Andrew Kelly | Reuters

Here’s the key news investors need to start their trading day:

1. Stocks look for momentum

US equity markets were on track to open higher on Monday morning after three consecutive winning weeks S&P 500, which is recovering from its worst first half in more than 50 years. The Nasdaq It also posted a winning week as investors digested the latest jobs report, which was much stronger than expected, as well as the prospect of future rate hikes from the Federal Reserve, which is in inflation-fighting mode. Markets will also get a fresh reading on inflation this week: The latest Consumer Price Index is due out on Wednesday, and economists expect it to show a slight slowdown in the red-hot rate of inflation. Follow live stock market updates here.

2. Senate passes climate and health-care package

US Vice President Kamala Harris smiles during her speech at the NAACP National Convention on July 18, 2022 in Atlantic City, New Jersey, US.

Hannah Beer | Reuters

Senate Democrats, relying on Vice President Kamala Harris’ tiebreaking vote amid unanimous Republican opposition, ultimately passed a reconciliation package with provisions to fight climate change and boost health care. The $430 billion bill was much smaller than the President’s Joe Biden And the Democratic leader was looking for one, but the party is counting on a big win ahead of this fall’s midterm elections. The party in power tends to lose seats in Congress during a president’s first term, and with inflation rising and Biden’s approval ratings in the gutter, Democrats are at risk of relinquishing control of both chambers. The House is scheduled to vote on the legislation later this week and send it to Biden. Read the NBC News report here.

3. Fed governors see bigger rate hikes

Federal Reserve Bank Governor Michelle Bowman delivers her first public remarks as a federal policymaker at the American Bankers Association conference on February 11, 2019 in San Diego, California.

Anne Neelam | Reuters

The Fed is fresh off its second consecutive three-quarter point rate hike, but according to Fed Governor Michelle Bowman, more are expected to come. “My view is that until we see inflation coming down in a consistent, meaningful and lasting way, an increase of the same size needs to be on the table,” she said. Comments at the end of the week. Bowman, a voting member of the central bank’s rate-setting Federal Open Market Committee, said there is high inflation A major threat to the economy rather than reducing growth. If prices continue to rise over the past few months, she said, “it could lead to further economic softening, creating the risk of prolonged economic weakness with high inflation, similar to what we experienced in the 1970s.”

4. Huge loss for SoftBank

SoftBank founder Masayoshi Son said there was “confusion in the world and in the markets” for a number of reasons, including Russia’s invasion of Ukraine, high inflation and central bank moves to raise interest rates. These factors have led to record annual losses at SoftBank’s Vision Fund.

Kentaro Takahashi | Bloomberg | Getty Images

High interest rates have hit riskier tech stocks this year, and SoftBank’s tech-focused Vision Fund pinch feeling. The Japanese conglomerate said on Monday that the Vision Fund posted a loss of 2.93 trillion yen ($21.68 billion) in the most recent quarter – the second-biggest quarterly loss for the fund. Overall, the company posted a record quarterly loss after posting a profit in the same quarter a year ago. SoftBank founder Masayoshi Son had already warned in the spring that the company would be more “conservative” with its investments after heavy losses last fiscal year.

5. China begins new military drills near Taiwan

A video screenshot shows a missile launched by the Chinese People’s Liberation Army PLA’s Eastern Theater Command’s Rocket Force on August 4, 2022, targeting designated maritime areas east of Taiwan Island.

Xinhua News Agency | Xinhua News Agency | Getty Images

China has not conducted its aggressive exercises near Taiwan. The Chinese military said on Monday it would launch new air and sea operations near the self-governing island, which China claims as its own. China’s military had just completed a few days of exercises – its largest ever. According to Reuters – Protests against House Speaker Nancy Pelosi’s visit to Taiwan. The drills included the launch of 11 short-range ballistic missiles, while warships, fighter jets and drones conducted several battles around the island.

– CNBC’s Yun Lee, Jeff Cox and Arjun Khrapal contributed to this report.

Register now To follow Jim Cramer’s every stock move for the CNBC Investing Club. Follow broad market action like a pro CNBC Prof.

Source link

Leave a Comment