Here are the top news, trends and analysis that investors need to start their trading day:
1. Dow set to jump after picking up a four-day losing streak
Traders work on the floor of the New York Stock Exchange (NYSE), September 21, 2021.
Brendan McDermid | Reuters
Dow futures rose More than 200 points Thursday, one day after 30 average stock and on a larger scale Standard & Poor’s 500 Breaking loss lines four sessions. The Nasdaq It rose for the second day in a row. All three stock criteria 1% added As investors looked at the problems faced by the Chinese real estate giant Chinese Evergrande Group And take a break in sending signals from Federal Reserve He has no immediate intention to remove US monetary stimulus policies. Wednesday’s gains put a dent in Monday’s low and September’s low, which has historically been a tough month on Wall Street. The Dow is down nearly 4% from last month’s record close. The S&P 500 and Nasdaq are down about 3% from their last record close earlier this month.
2. China is preparing for the possible demise of Evergrande, says the Wall Street Journal
Residential buildings at Life in Venice’s Real Estate and Tourism Development in Qidong, Jiangsu Province, China, on Tuesday, September 21, 2021.
Kelay Shane | Bloomberg | Getty Images
Chinese authorities have asked local officials to prepare for a possible collapse of debt-laden Evergrande, The Wall Street Journal reported Thursday. Local officials described the signals from Chinese authorities as “preparing for a potential storm,” and said the government told them they should only intervene at the last minute to prevent spillovers from Evergrande’s demise, according to the newspaper. The major developer paid off local bonds on Wednesday. However, it is not clear whether the company will pay the interest due Thursday on its overseas bonds.
3. Initial jobless claims are rising instead of declining as expected
Career fair in Louisville, Kentucky, on June 23, 2021.
Luke Sharett/Bloomberg via Getty Images
The US government’s weekly look at the initial Unemployment claims It unexpectedly rose to 351,000. Economists had expected a drop in new claims for the week ending September 18 to 320,000 – near the lows of the Covid pandemic. The previous week was revised up to 335,000.
After its two-day September meeting, the Federal Reserve on Wednesday presented its quarterly economic forecast. Officials see the country’s unemployment rate fall to 4.8% this year from the current 5.2%. June’s estimate for the year-end rate was 4.5%.
4. The Federal Reserve lowered its forecast for economic growth, and increased its forecast for inflation
The Marriner S. Eccles Federal Reserve Building is located in Washington, D.C., United States, on Tuesday, August 18, 2020.
Erin Scott | Bloomberg via Getty Images
Federal Reserve forecast It also lowered growth figures in the US, raised inflation expectations and pushed the timing of interest rate hikes. The FOMC now sees GDP rising just 5.9% this year. Core inflation is expected to rise by 3.7% this year. Against this background, the Federal Reserve left interest rates near zero unchanged on Wednesday afternoon. But most members now see the first rate hike in 2022. The Fed has not offered a timetable for reducing its bond purchases. However, Fed Chairman Jerome Powell During his post-meeting press conference, he said that if the recovery continues on the right track, “the tapering process that ends in the middle of next year is likely to be appropriate.”
5. CDC Votes Pfizer COVID Enhancers for Older, Frail Americans
A nurse reaches for a vial of the Pfizer-BioNTech Covid-19 vaccine at the vaccine pop-up clinic in the Arleta neighborhood of Los Angeles, California, August 23, 2021.
Robin Beck | AFP | Getty Images
The CDC may vote Thursday on the Food and Drug Administration licensing decision a Pfizer Covid Booster dose for people 65 and older as well as other frail Americans six months after they have completed their first two doses. If the CDC approves, booster shots for those groups can begin immediately. But that wouldn’t go so far as to push the Biden administration to deliver the reinforcements to the general public early this week.
– CNBC channel Jesse Pound Contribute to this report. Follow all market movements like a pro CNBC Pro. Get the latest epidemic news with CNBC’s coronavirus coverage.
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