5 things to know before the market opens on Wednesday October 6



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Here are the most important news, trends and analysis investors need to start their trading day:

1. Stock Futures Crash As October’s Wild Swings Continue

Traders work on the floor of the New York Stock Exchange (NYSE) on October 4, 2021 in New York City.

Spencer Platt | Getty Images

Dow futures fell more than 300 points, or nearly 1%, on Wednesday as October has so far lived up to its reputation for extreme volatility. The S&P 500 and Nasdaq futures contracts each fell more than 1% in pre-market trading. On Tuesday, the Dow Jones Industrial Average, S&P 500 and Nasdaq all climbed around 1% in a rebound from the decline in the previous session. Wall Street entered the new month on Friday after a difficult September with a strong recovery. Many market strategists have pointed out that while October can be tricky, the fourth quarter has historically been a predominantly strong period for stocks. The Nasdaq was 6% off its all-time September 7 close. The S&P 500 was 4.2% from its record close on September 2. The Dow Jones was 3.7% from its August 16.

2. The 10-year Treasury yield exceeds 1.55% before employment data

Rising bond yields on Wednesday put pressure on tech stocks, with Apple, Microsoft and Amazon all falling more than 1% each in pre-market. The 10-year Treasury yield topped 1.55% ahead of the first of three major jobs reports. Ahead of the opening bell Wednesday, ADP releases its September preview on private sector employment at 8:15 a.m.ET. Economists expected US businesses to create 425,000 new jobs during the month from 347,000 in August. The Labor Department is issuing weekly jobless claims Thursday morning, a day before September’s big jobs report.

3. Oil prices at their highest for almost 7 years fuel inflation concerns

Working oil pumps against a sunset sky.

Imaginima | E + | Getty Images

U.S. oil prices retreated slightly from nearly seven-year highs on Wednesday, on course to break a four-game winning streak. West Texas Intermediate crude, however, gained 1.7% on Tuesday, settling at $ 78.93 a barrel after peaking near $ 80 in session. WTI gained nearly 65% ​​in 2021, adding price pressure in the United States at a time when the Federal Reserve tries to assess the persistence of higher inflation as policymakers consider starting to cut prices. extraordinary monetary stimulus measures of the Covid era.

4. Biden concedes the $ 3.5 trillion budget bill will have to be smaller

U.S. President Joe Biden delivers remarks on infrastructure investments at the International Union of Operating Engineers Local 324 Training Center in Howell, Michigan on October 5, 2021.

Jonathan Ernst | Reuters

President Joe Biden conceded that the final version of a $ 3.5 trillion package of social and environmental initiatives with only Democrat backing will need to be considerably smaller. In virtual meetings with House Democrats this week, Biden said he reluctantly saw a price between $ 1.9 trillion and $ 2.3 trillion, a Democrat familiar with the sessions said on Tuesday. Senior Democrat Senator Joe Manchin wants a bill closer to $ 1.5 trillion. For the passage, Democrats need every 50-50 Senate vote and all but three in the House.

5. Democrats Consider Filing Amendment To Raise Debt Ceiling

Biden said Democrats are considering changing Senate filibuster rules to quickly pass an increase in the debt ceiling needed to avert a devastating credit default. The deadline set by the Treasury Department is October 18. Getting rid of the filibuster would lower the typical 60 vote threshold for the move to 50. With Vice President Kamala Harris breaking any tie, a simple majority would suffice for the move. Republicans want Democrats to use the reconciliation process they aim to use for the money bill, to act on the debt ceiling.

– The Associated Press and Reuters contributed to this report. Follow all market actions like a pro on CNBC Pro. Get the latest pandemic news with CNBC’s coronavirus coverage.

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