5 things to know before the stock market opens Friday, Oct 1
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Investors need the following news, analysis and trends to help them start trading:
1. Dow to rebound after the worst month in 2016
Traders in New York City work at the New York Stock Exchange (NYSE), September 30, 2021.
Spencer Platt | Getty Images
Dow futures roseOn Friday, the Dow Jones Industrial Average climbed nearly 200 points, in reverse of a sharp decline that occurred earlier. These are the Dow Jones Industrial AverageThe fares relatively well than the S&P 500 NasdaqLast week, the worst slide was Thursday. down 1.6%. The S&P 500 fell about 1.2%. Nasdaq saw some relief due to falling bond yields and dropped 0.4%
- For September, the Dow fell 4.3%; the S&P 500 fell nearly 4.8%; and the Nasdaq fell 5.3%.
- For the third quarter, which also ended Thursday, the Dow dropped 1.9%; the S&P 500 gained 0.2%; and the Nasdaq fell 0.4%.
- However, each of the three benchmarks was still quite high for the year. They saw respective gains in 10.6% and 14.7% respectively.
- While October historically has seen some severe sell-offs, the month is generally a sign of improved seasonal performance.
2. Fed’s inflation measurement is used to determine policy. Expected to stay elevated
The 10-year Treasury yieldFriday ticked lower under 1.5%. The 10-year yield hit a three-month peak of 1.567% earlier this week. Inflation measures will be released by the government. Federal ReserveThe use of monetary policy to establish it. Core personal consumption expenditures price index is forecast to increase 3.5% in August compared with a year ago. This would only slightly lower than the 3.6% year-over-year growth in July. It was a tie with a 30-year high. Federal Reserve Chairman Jerome PowellThis week, the Federal Reserve stated that inflation pressures might last longer than predicted. They cited supply chain bottlenecks and other key factors.
3. Biden approves temporary funding bill in order to avoid government shutdown
Congress prevented a government shutdownPrior to Thursday night’s midnight deadline President Joe BidenA bill to fund federal operations until Dec. 3 was signed. The so-called continuing solution avoided one crisis by being passed. But lawmakers must deal with another issue: the looming danger of default if Congress doesn’t raise or suspend the debt ceiling by Oct. 18. Democrats who control both House and Senate tried to fund government as well as suspending debt ceiling under the same bill. Senate Republicans blocked this legislation and forced Democrats to deal with the funding problems first.
4. Biden fails to end Dem impasse, House infrastructure vote postponed
Biden failed to break a Democratic stalemateThat could threaten his domestic agenda. The two Democratic centrist senators and a group of progressive House members were at odds over key issues on Thursday. The original plan by Nancy Pelosi, House Speaker, was to vote on Thursday on the Senate’s bipartisan $1 trillion infrastructure bill. However it wasn’t able to get enough votes and she postponed it. House progressives worry that they may lose their leverage in pushing moderates for a transformational budget reconciliation bill, with a minimum price tag of $3 trillion, if they vote on the infrastructure bill.
5. Merck will seek an emergency authorization to administer oral Covid treatment
MerckRidgeback Biotherapeutics plan to seek emergency authorizationFollowing the announcement of “compelling” clinical trial results, Covid was approved by Merck for its oral antiviral drug treatment. The Dow stock Merck soared almost 8% on Friday’s premarket. According to companies, Molnupiravir has reduced death or hospitalization rates by 50% for mild and moderate Covid patients, they said. Molnupiravir can be taken orally. It works by blocking the reproduction of Covid in the body. PfizerIt’s currently developing an oral antiviral. Gilead SciencesAntiviral Remdesivir is an intravenous drug that’s administered via IV. It was approved for use in emergency situations a year ago.
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