5 things to know before the stock market opens Tuesday

Traders on the floor of the NYSE Sept. 30, 2022.

Source: NYSE

Here are the most important news items that investors need to start their trading day:

1. A little relief

The weather was gloomy Monday in New York, but the markets, for a change, were not. Stocks rebounded sharply as investors sought to shake off a brutal September, which brought about new lows for the year. The Dow had its best day since June, and the S&P 500 had its best one since July. Futures looked strong and Treasury yields slipped Tuesday morning, as well. Time will tell whether any of this will last, however. Volatility is more the rule these days, even though the Federal Reserve has telegraphed that it will continue raising rates at an aggressive clip if inflation remains high. Read live market updates here.

Read more from CNBC PRO: Here’s what’s coming next for stocks

2. Crypto warning from the feds

U.S. Treasury Secretary Janet Yellen holds a news conference in the Cash Room at the U.S. Treasury Department in Washington, U.S. July 28, 2022. 

Jonathan Ernst | Reuters

The SEC’s settlement with Kim Kardashian wasn’t the only warning federal authorities made Monday about cryptocurrencies. The Treasury Department’s Financial Stability Oversight Council, in a major report on digital assets, said unregulated cryptocurrencies could pose a threat to the entire U.S. financial system. Treasury Secretary Janet Yellen pushed for stronger enforcement of current laws, as well as for “appropriate” regulation of assets such as stablecoins. “It is vital that government stakeholders collectively work to make progress on these recommendations,” Yellen said.

3. Poshmark sells for $1.2 billion

Rafael Henrique | LightRocket | Getty Images

Kind of new, kind of used, sold for less. Poshmark, the online clothes seller, agreed to be acquired by South Korean internet company Naver for about $1.2 billion in cash. That translates to $17.90 a share. While that’s a premium compared with Poshmark’s closing price Monday of $15.57, it’s still much lower than its $42 debut price when the company went public in January 2021. Back then, e-commerce was all the rage because people were largely stuck at home due to Covid restrictions and fear of catching the virus. People and authorities have since moved on. The deal will help Naver boost its retail operations, while expanding Poshmark’s reach. Shares of Poshmark jumped over 10% in premarket trading Tuesday.

4. Ukraine builds momentum

5. ‘We still have time’

A view of the 74th United Nations General Assembly on September 28, 2019 in New York City.

Kena Betancur | Getty Images News | Getty Images

The United Nations has a warning: The world is on the verge of a recession that will likely hurt developing nations more than others. If it happens, it will largely be due to continued interest rate hikes in developed nations, such as the United States, the UN Conference on Trade and Development said in a report issued Monday. “Interest rate hikes by advanced economies are hitting the most vulnerable hardest,” the report said. “Some 90 developing countries have seen their currencies weaken against the dollar this year.” The strengthening dollar may make the United States a safe haven for investors, but it could drain the life from other nations’ economies, experts have said. The world can still head off a global recession, though, according to the UN. “We still have time to step back from the edge of recession. Nothing is inevitable. We must change course,” UNCTAD Secretary-General Rebeca Grynspan said, advocating for more “pragmatic” economic policies.

Read more: Credit Suisse to remain ‘under pressure’ but analysts wary of Lehman comparison

– CNBC’s Alex Harring, Chelsey Cox, Annie Palmer, Holly Ellyatt and Su-Lin Tan contributed to this report.

Sign up now for the CNBC Investing Club to follow Jim Cramer’s every stock move. Follow the broader market action like a pro on CNBC Pro.

Checkout latest world news below links :
World News || Latest News || U.S. News

Source link

Back to top button