A trader works on the floor of the New York Stock Exchange (NYSE), New York, August 3, 2022.
Andrew Kelly | Reuters
Here are the most important news investors need to start their trading day:
1. Stocks seek momentum
US stock markets were on track to open higher on Monday morning after three straight weeks of gains for the S&P 500, which is recovering from its worst first half in more than 50 years. The Nasdaq also posted a winning week as investors digested the latest jobs report, which was much stronger than expected, as well as the possibility of future rate hikes from the Federal Reserve, which is in inflation-fighting mode. Markets will also get a fresh reading on inflation this week: The latest consumer price index is due out on Wednesday, and economists expect it to show a slight slowdown in the red-hot inflation rate. Follow live stock market updates here.
2. The Senate approves the climate and health package
U.S. Vice President Kamala Harris smiles during her speech at the NAACP National Convention in Atlantic City, New Jersey, U.S., on July 18, 2022.
Hannah Beier | Reuters
Senate Democrats, relying on Vice President Kamala Harris’ tie-breaking vote amid unanimous Republican opposition, eventually approved a reconciliation package that includes provisions to fight climate change and strengthen health care. The $430 billion bill ended up being much smaller than the president’s Joe Biden and Democratic leaders were looking, but the party is touting it as a big win ahead of this fall’s midterm elections. The party in power tends to lose seats in Congress during a president’s first term, and with inflation rampant and Biden’s approval ratings on the edge, Democrats are in danger of ceding control of both chambers. The House is scheduled to vote on the legislation and send it to Biden later this week. Read the NBC News report here.
3. Fed governor sees more rate hikes
Federal Reserve Bank Governor Michelle Bowman makes her first public remarks as federal policymaker at an American Bankers Association conference in San Diego, California on February 11, 2019.
Ann Sapphire | Reuters
The Fed is fresh off its second straight hike of three-quarters of a point, but expects more to come, according to Fed Governor Michelle Bowman. “My view is that increases of a similar size should be on the table until we see inflation come down in a consistent, meaningful and lasting way,” he said. comments over the weekend. Bowman, a voting member of the central bank’s Federal Open Market Committee on rates, said high inflation is a bigger threat to the economy than slowing growth. If prices continue to rise as they have in recent months, he said, “it could lead to further economic easing, with the risk of a prolonged period of economic weakness coupled with high inflation, as we experienced in the 1970s.” .
4. Big loss for SoftBank
SoftBank founder Masayoshi Son said there is “confusion in the world” and markets due to a number of factors, including Russia’s invasion of Ukraine, high inflation and moves by the central bank to raise interest rates. These factors have contributed to a record annual loss at SoftBank’s Vision Fund.
Kentaro Takahashi | Bloomberg | Getty Images
High interest rates have hit risky tech stocks this year, and SoftBank’s technology-focused Vision Fund is feel the pinch The Japanese conglomerate said on Monday that the Vision Fund posted a loss of 2.93 trillion yen ($21.68 billion) in the most recent quarter, the fund’s second-biggest quarterly loss. Overall, the company posted a record quarterly loss after turning a profit in the same quarter a year earlier. SoftBank founder Masayoshi Son had already warned in the spring that the company would be more “conservative” with its investments after a massive loss in the previous fiscal year.
5. China conducts new military exercises near Taiwan
Video screenshot shows a missile launched by the rocket force of the Chinese People’s Liberation Army’s Eastern Theater Command, targeting designated maritime areas east of Taiwan Island, on the 4th August 2022.
Xinhua News Agency | Xinhua News Agency | Getty Images
China is not done with its aggressive exercises near Taiwan. China’s military said on Monday it would conduct new air and sea actions near the self-ruled island, which China claims as its own. China’s military had just finished several days of exercises, the largest ever, according to Reuters, protesting House Speaker Nancy Pelosi’s visit to Taiwan. The exercises included the launch of 11 short-range ballistic missiles, while warships, fighter jets and drones made various maneuvers around the island.
– CNBC’s Yun Li, Jeff Cox and Arjun Khrapal contributed to this report.
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