5 things to know before the stock market opens Monday, September 27

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

The Dow Jones collected 614 points last Monday. Then a strong two-day rally on Wednesday and Thursday added 844 points for a weekly gain. The S&P 500 and the Nasdaq also rose last week. All three benchmarks posted declines of more than 1% for a historically difficult September with four days remaining in the month. The Dow Jones and the Nasdaq were more than 2% off their most recent closing highs. The S&P 500 was 1.8% off its last record close.

Bond prices fell on Monday, pushing yields on 10 and 30-year Treasuries to 1.5% and 2%, respectively, levels not seen in months. Yields move inversely with bond prices. August’s durable goods orders, placed before the opening bell, were much stronger than expected. Over the coming week, Federal Reserve Chairman Jerome Powell is scheduled to testify before the Senate on Tuesday and the House on Thursday. Powell also appears on a European Central Bank panel with other central bank executives on Wednesday. The Fed calmed the markets last week by sending signals of no immediate intention to remove extraordinary monetary stimulus policies from the era of the Covid pandemic.

Investors will also be watching Congress this week, as lawmakers try to pass a funding plan in time to avoid a government shutdown on Friday. The debt ceiling should be part of this debate, but policy makers don’t expect it to be resolved at the same time. They say it could weigh on markets for several weeks before Congress raises the debt ceiling. As for the $ 1,000 billion bipartisan infrastructure bill, House Speaker Nancy Pelosi expects it to pass this week. However, the vote could be pushed back from the promised deadline on Monday. The Senate has already passed the measure.

Elon Musk reassured Tesla’s commitment to China, saying the eclectic automaker will continue to expand its investments there. Musk’s comments came in a Q&A-style stream recorded at the World Internet Conference, hosted by the Cyberspace Administration of China. “My frank observation is that China devotes a lot of resources and efforts to the application of the latest digital technologies in different industries, including the automotive industry, making China a global leader in digitization,” said the Tesla CEO in the video. This is the second time this month that Musk has spoken highly of China, which is an important market for Tesla.

Alphabet’s Google is reducing the amount of revenue it keeps when customers buy software from other vendors in its cloud marketplace, as leading tech companies face increasing pressure to reduce their so-called usage rates . The Google Cloud platform is cutting its revenue share to 3% from 20%, according to a person familiar with the matter who asked not to be named in order to talk about internal policies.

Facebook announced Monday morning that it was suspending its work on Instagram for children, after facing a series of backlash from users and lawmakers. “While we believe building ‘Instagram Kids’ is the right thing to do, Instagram and its parent company Facebook will reassess the project at a later date,” the company said in a statement. The children’s app was supposed to give children under the age of 13 access to a new version of the social media photo-sharing service.

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