Here are the most important news, trends and analysis that investors need to start their trading day:
1. The Nasdaq will rebound after falling 2.8% on moderate bond yields.
View of the New York Stock Exchange building on Wall Street in downtown Manhattan, New York.
Roy Rochlin | Getty Images Entertainment | Getty Images
US equities rallied in premarket Wednesday as bond yields slowed. A jump in 10-year Treasury yields to a three-month high above 1.567% hit tech stocks on Tuesday. The Nasdaq lost 2.8%. The big tech and growth names are sensitive to higher rates as their high scores are based on future growth and cash flows. The S&P 500 lost 2%. The Dow Jones Industrial Average fell 569 points, or 1.6%. Two days to the end of September, the Dow Jones fell 3%; the S&P 500 index fell by more than 3.7%; and the Nasdaq fell nearly 4.7% in a historically bad month for stocks.
2. Biden talks about a $ 3.5 trillion plan for closure and default.
The president Joe Biden canceled a trip to Chicago that was supposed to focus on Covid vaccinations so he could stay at the White House. wednesday to try and get support for his party’s $ 3.5 trillion budget plan. Democratic leaders want to use their slim majority in the House and Senate to pass a social spending package without GOP support.
- Biden met Tuesday with opposition Senate centrist Democrats Joe Manchin and Kirsten Cinema.
- Progress on Democratic budgetary measures could determine when the House of Representatives votes on the $ 1 trillion Senate infrastructure bill.
- Also hanging in the balance is the urgent need to fund the federal government after the end of Thursday’s fiscal year to avoid a halt and raise the government debt ceiling in the coming weeks to avoid default.
3. Nearly 600 United employees will be laid off due to the Covid vaccination mandate.
A United Airlines passenger plane lands at Newark Liberty International Airport, NJ, USA on December 6, 2019.
Chris Helgren | Reuters
United Airlines said 593 employees are facing layoffs for failing to comply with the carrier’s Covid vaccination policy, one of the company’s strictest requirements. More than 96% of United’s 67,000 employees in the United States met the vaccine requirement. The deadline for proof of vaccination was late Monday. Approximately 2,000 United employees have applied for an exemption from liability for religious or medical reasons. In announcing the exemptions this summer, the Chicago-based airline said tax-exempt employees will be sent on temporary unpaid leave.
4. Lucid begins production of its flagship Air sedan ahead of customer deliveries.
People test the Dream Edition P and Dream Edition R electric vehicles at Lucid Motors’ plant in Casa Grande, Arizona on September 28, 2021.
Caitlin O’Hara | Reuters
Lucid has begun production of its first electric vehicles for customers, with deliveries scheduled for the end of next month. The milestone is critical for the electric vehicle startup, which debuted on the Nasdaq in July through its merger with SPAC. It is considered the leader among Tesla’s competitors. The top version of the Lucid Air Dream Edition will be available at the end of Octoberfollowed by less expensive models. Lucid said it has received over 13,000 bookings. In July, the company told investors it plans to produce 20,000 Lucid Air sedans in 2022, generating more than $ 2.2 billion in revenue. Lucid shares are up 7% premarket.
5. Elon Musk says the US government should avoid regulating cryptocurrencies.
Elon Musk, CEO of Tesla, stands at the Tesla Gigafactory during a press conference. year.
Patrick Plehl | painting alliance | painting alliance | Getty Images
Tesla CEO Elon Musk said the US government should avoid trying to regulate cryptocurrencies. “I think it’s impossible to destroy cryptocurrency, but governments can slow it down,” Musk said Tuesday at Code Conference. Musk, who has frequently tweeted his support for digital coins, was answering a question from New York Times columnist Kara Swisher. Tesla said earlier this year that it bought bitcoins to “maximize the value of our money.”
– The Associated Press and Reuters contributed to this report. Follow all market activities like a pro. CNBC Pro… Get the latest news on the pandemic with CNBC Coronavirus Coverage…