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DJIA Futures: -180 (-0.5%)
SPX Futures: -26 (-0.6%)
NASDAQ Futures: -92 (-0.6%)
Good morning friends!
Futures are dropping as traders add to September’s losses.
Let’s get right to it!
U.S. Treasury yields are falling this morning after hitting multiyear highs over the past few days.
The 2-year yield is down 2 basis points to 5.13% while the 10-year yield is down 4 basis points to 4.49%.
Investors are looking ahead to important economic data for the Fed this week to help determine when the next rate hike may be.
Fed Chair Jerome Powell is scheduled to speak Thursday afternoon and the bank’s preferred inflation gauge, the core PCE price index, will be released Friday morning.
The House is preparing to vote on four funding bills today in order to avoid a government shutdown this weekend.
Those bills include funding for the Departments of Defense, Homeland Security, State and Agriculture.
But even if passed along party lines in the Republican-controlled House, the bills are not expected to be considered in the Democrat-controlled Senate.
Congress has until Saturday night to pass a full funding package or a continuing resolution to extend funding while negotiations continue.
House Speaker Kevin McCarthy has said he wants to pass a short-term deal to fund the government for 45 days but acknowledged he may not have the votes from hard-right Republicans who want steep spending cuts.
Oil prices are down this morning as demand concerns rise due to the high interest rate outlook.
West Texas Intermediate crude futures are down 0.6% at just over $89 bbl with Brent crude futures down 0.6% at under $93 bbl.
Fed officials and other central banks around the world have reiterated plans in recent days to keep monetary policy tight for longer than previously anticipated.
That impacts oil prices because higher rates slow economic growt, which lowers oil demand.
Tesla (TSLA) shares are down 0.9% ahead of the open following a Financial Times report that EV makers that export from China to the EU are set to be investigated.
Brussels’ most senior trade official said the EU will investigate whether Tesla and other EV makers are receiving unfair subsidies.
When asked if the investigation applied to Tesla, he said, “Strictly speaking, it’s not limited only to Chinese brand electrical vehicles, it can be also other producers’ vehicles if they are receiving production-side subsidies.”