Here are the key news, trends, and analysis investors need to start their trading day:
1. Wall Street appears to be under pressure in September with only a few days left
The Dow fueled 614 points last Monday. Then a strong two-day rally on Wednesday and Thursday added 844 points for a weekly gain. The S&P 500 and Nasdaq also rose last week. All three stock benchmarks posted a decline of more than 1% in the historically rough September, with the month still four days past. The Dow and Nasdaq were down more than 2% from their recent record highs. The S&P 500 was 1.8% below its most recent high.
2. Treasury bond yields soar ahead of a busy week for Fed Powell
Federal Reserve Chairman Jerome Powell arrives for a Senate Banking Committee hearing in Washington, DC on Thursday, July 15, 2021.
Al Drago | Bloomberg | Getty Images
Bond prices fell on Monday, pushing 10- and 30-year government bond yields to 1.5% and 2%, respectively, levels that have not been reached in months. The yields move inversely to the bond prices. Durable goods orders in August were much stronger than expected ahead of the opening bell. In the coming week, Federal Reserve Chairman Jerome Powell is due to testify in front of the Senate Tuesday and the House of Representatives on Thursday. Powell will also appear on a panel at the European Central Bank with other central bank leaders on Wednesday. The Fed calmed the markets last week by sending out signals that there were no immediate intentions to reverse the exceptional monetary stimulus policies of the Covid pandemic era.
3. Voting on infrastructure, debt limits, federal funding
House Speaker Nancy Pelosi, D-California, holds her weekly press conference at the Capitol Visitor Center on Wednesday, September 8, 2021.
Tom Williams | CQ Roll Call, Inc. | Getty Images
Investors will also be watching Congress this week as lawmakers seek to pass a funding plan in time to avert a government shutdown on Friday. The debt ceiling is meant to be part of that debate, but strategists don’t expect it to be resolved at the same time. They say this could hang above the markets for several weeks before Congress raises the debt ceiling. As for the $ 1 trillion bipartisan infrastructure bill, House spokeswoman Nancy Pelosi expects it to be passed this week. However, the vote can be postponed from the promised Monday deadline. The Senate has already decided on the measure.
4. Tesla boss Musk praises China for the second time this month
Elon Musk, Tesla CEO, speaks at an opening ceremony for Tesla’s Chinese-made Model Y program in Shanghai on Jan. 7.
Aly song | Reuters
Elon Musk confirmed Tesla’s commitment to China, saying the versatile vehicle maker will continue to expand its investments there. Musk’s comments came on a taped Q&A stream at the World Internet Conference hosted by the Cyberspace Administration of China. “My honest observation is that China is spending a lot of resources and efforts to apply the latest digital technologies in various industries, including the automotive industry, making China a world leader in digitization,” the Tesla CEO said in the video. It is the second time this month that Musk has given high praise to China, a key market for Tesla.
5. Google cuts cloud commissions; Facebook delays ‘Instagram Kids’
The Google logo at the entrance to the Google Cloud campus in Seattle.
Toby Scott | SOPA pictures | LightRakete | Getty Images
Alphabet’s Google is reducing the revenue it retains when customers buy third-party software on its cloud marketplace as technology leaders come under increasing pressure to cut their so-called take rates. Google Cloud Platform is reducing its revenue share from 20% to 3%, according to a person familiar with the matter who refused to be named to discuss internal guidelines.
Facebook announced Monday morning that it was pausing its work on Instagram for children after facing a series of backlash from users and lawmakers. “Although we believe that building ‘Instagram Kids’ is the right thing to do, Instagram and its parent company Facebook will reassess the project at a later date,” the company said in a statement. The kids app should give kids under the age of 13 access to a new version of the social media service for sharing photos.
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