Here are the most important news, trends and analysis investors need to start their trading day:
1. Dow Futures Cut Losses Overnight After Friday Highs
Traders on the New York Stock Exchange, July 20, 2021.
Dow futures fell slightly on Monday, reducing much of the overnight losses by nearly 300 points, as Hong Kong and China stocks plunged amid concerns over the Chinese government’s crackdown in the education and real estate sectors.
Ahead of a big week for tech stocks on Wall Street, the Dow Jones Industrial Average closed above 35,000 on Friday for the first time. Four consecutive days of more than canceled gains, last Monday’s more than 2% drop as high concerns about spikes in Covid cases due to the delta variant briefly hit the market. The S&P 500 and Nasdaq also closed at record highs on Friday.
The two-day Fed meeting in July is scheduled to begin on Tuesday. Investors will be looking for signals on when central bankers may start to tighten monetary policy and how they feel about rising inflation. The 10-year Treasury yield fell to around 1.25% on Monday. The yield, which moves inversely to price, hit a 5.5-month low at nearly 1.13% last week.
2. Stocks in Asia Collapse on Chinese Regulatory Concerns and US Talks
A person wearing a protective mask walks past the signage for Hong Kong Exchanges & Clearing Ltd. (HKEX) displayed at the Exchange Square complex in Hong Kong, China on Wednesday August 19, 2020.
Roy Liu | Bloomberg via Getty Images
Hong Kong’s Hang Seng stock index fell more than 4% overnight. Mainland Chinese stocks also fell, with the Shanghai and Shenzhen composite components each falling more than 2%.
Many Chinese education stocks, listed in Hong Kong and the United States, lost about half of their value after Beijing on Friday announced new rules banning for-profit tutoring in basic school subjects in order to ” alleviate financial pressures on families. Chinese regulators also took steps to correct irregularities in the property market on Friday.
Adding to the uncertainty, a meeting of senior Chinese and US officials got off to a rocky start. In talks with US Under Secretary of State Wendy Sherman on Monday, Chinese Vice Foreign Minister Xie Feng said relations between the two countries were “at an impasse” and urged America to ” change his highly erroneous state of mind “.
3. Bitcoin is trading up to almost $ 40,000 for a six week high
An illustration showing physical imitations of cryptocurrency bitcoin banknotes and coins.
Ozan Kosé | TBEN via Getty Images
Bitcoin surged Monday to its highest level since mid-June, flirting at $ 40,000 before falling back below $ 39,000. Traders were hoping that last week’s positive feedback from cryptocurrency enthusiasts, including Tesla CEO Elon Musk and Twitter CEO Jack Dorsey, would put bitcoin back on the right track. Bitcoin hit a record high of nearly $ 65,000 in mid-April. On June 22, bitcoin briefly turned negative for the year, falling below $ 29,000. Inventors will see how the bitcoin race can impact Tesla’s quarterly results. Musk’s Tesla, who holds the crypto in his company’s balance sheet, is expected to report earnings after Monday’s closing bell.
4. Delta variant leads to spike in Covid cases in all 50 states and DC
Critical care nurse Emily Boucher, who works in the intensive care unit at Johnston Memorial Hospital, cares for covid patient Hannah Church, 25, who was first diagnosed with the coronavirus on the 30th. May, June 16, 2021 in Abingdon, Va.
Catherine Frey | The Washington Post | Getty Images
Covid cases are on the rise in all 50 states and the District of Columbia as the delta variant spreads rapidly across the United States. Cases hit a 15-month low in late June before infections began to rise. Immunization rates peaked in April and have declined significantly in recent months. White House chief medical adviser Dr Anthony Fauci said on Sunday that Americans with compromised immune systems may end up needing booster shots against Covid. Fauci told TBEN that health officials are considering revising mask guidelines for people vaccinated in the United States.
5. Senators say they strike bipartisan infrastructure deal
US President Joe Biden addresses the press after meeting with the Senate Democratic Caucus to strengthen support for its infrastructure and economic investment goals during the Democratic Luncheon on the Capitol Hill July 13, 2021 in Washington, DC, July 14, 2021.
Andrew Caballero-Reynolds | TBEN | Getty Images
Senators are rushing to strike a bipartisan infrastructure deal as early as Monday, as pressure mounts from all sides to show progress on President Joe Biden’s top priority. Senior Republican negotiator Senator Rob Portman of Ohio said the two sides were “about 90% of the way” on a deal. Senior Democrat Senator Mark Warner of Virginia said he hoped a final bill would be ready Monday afternoon. The White House wants a bipartite agreement for this first phase of infrastructure. But as talks drag on, anxious Democrats, who have limited control of the House and Senate, could leave Republicans behind and try to go it alone.
– Reuters and The The Bharat Express News contributed to this report. Follow all market actions like a pro on TBEN Pro. Get the latest pandemic news with TBEN’s coronavirus coverage.