Here are the key news, trends, and analysis investors need to start their trading day:
1. Wall Street looks higher after the tech downturn on Monday
A trader gazes grimly at a screen on the New York Stock Exchange on September 17, 2001 in New York.
Chris Hondros | Getty Images
2. The US faces a recession if Congress breaks the debt ceiling, says Yellen
Janet Yellen, U.S. Treasury Secretary, speaks during an interview at the National Association of Business Economics (NABE) annual meeting in Arlington, Virginia, the United States, on Tuesday, September 28, 2021.
Amanda Andrade-Rhoades | Bloomberg | Getty Images
Treasury Secretary Janet Yellen told CNBC Tuesday that she believed the economy would plunge into recession if Congress did not tackle the credit limit in front of an unprecedented US debt default. “I consider October 18 a deadline. It would be disastrous not to pay the government bills if we were in a position where we don’t have the resources to pay the government bills,” Yellen said in the “Squawk Box”. On Monday, President Joe Biden urged Republican senators to “get out of the way” on the debt ceiling. Senate Republican Chairman Mitch McConnell said Democrats should use their Capitol Hill majorities to act without GOP votes.
3. Oil prices rose to around 7-year highs following OPEC and allied moves
Oil storage tanks can be seen from above in Carson, California on April 25, 2020 after crude oil prices fell into negative territory for the first time in history on April 20.
Robyn Beck | AFP | Getty Images
US oil prices, as measured by West Texas Intermediate crude oil, rose modestly to a seven-year high near $ 78 a barrel on Tuesday morning. WTI rose around 2.3% on Monday as international oil producers decided to cap shipments. Despite US pressure to ramp up production, OPEC and its allies were concerned that a fourth global wave of Covid infections could slow a recovery in demand, a source told Reuters shortly before the vote on Monday. US oil prices rose more than 60% in 2021, bringing with them large energy companies. Exxon is up nearly 50% this year.
4. Facebook whistleblower for testimony; Fixed platform failure
In this October 4, 2021 illustration, Facebook, WhatsApp, and Instagram logos are displayed through broken glass.
Given Ruvic | Reuters
Facebook whistleblower Frances Haugen will testify Tuesday at the Senate Commerce Consumer Protection Subcommittee hearing. After recent reports in the Wall Street Journal based on documents she leaked sparked public outcry, Haugen revealed her identity in an interview on CBS’s “60 Minutes,” which aired Sunday night. She insisted that “Facebook has shown time and time again that it chooses profit over security.” Facebook shares rose 1% in the premarket on Tuesday after losing nearly 5% in their worst session in nearly a year.
Facebook and its Instagram and WhatsApp services are back online after a massive global outage. Facebook said late Monday that “the main cause of this outage was an incorrect configuration change.” The roughly six-hour incident marked the longest downtime for the social media company since 2008, when a bug blocked the website offline for about a day and affected around 80 million users. The company’s platforms currently have billions of users.
5. Tesla has to pay ex-worker $ 137 million over hostile jobs and racism
Tesla Chief Executive Office Elon Musk speaks at his company’s Fremont, California factory.
Noah Berger | Reuters
A federal court in San Francisco ruled that Tesla must pay a former contract worker, Owen Diaz, approximately $ 137 million after suffering racial abuse while working for the company, his attorneys told CNBC. The jury awarded more than attorneys asked for their client, including $ 130 million in punitive damages and $ 6.9 million in emotional distress. Diaz told the court that colleagues used nicknames to denigrate him and other black workers, asking him to “return to Africa” and leaving racist graffiti on the toilets and a racist drawing on his work area. Diaz’s attorneys said the case could only move forward because her client did not sign any of Tesla’s mandatory arbitration agreements.
– Associated Press and Reuters contributed to this report. Follow all market activity like a pro on CNBC Pro. Get the latest on the pandemic with coronavirus coverage from CNBC.