Daily Stock Market News

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


Traders work on the floor of the New York Stock Exchange (NYSE) in New York, September 26, 2022.

Brendan McDermid | Reuters

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

1. Stocks try to shake it off, again

U.S. stock futures were headed for a higher open Tuesday following yet another rout the day before. Stocks are on a five-day losing streak, and the blue-chip Dow Jones industrial average is in a bear market, having fallen more than 20% from its record high. The Cboe Volatility Index, also known as the VIX or the “fear gauge,” on Monday hit its highest level since the middle of June, the last time markets were in the pits this year. In Fed world, where policy makers are keen to squelch price increases with rate hikes, Cleveland Fed President Loretta Mester said inflation was “unacceptably high.” Chicago Fed President Charles Evans, meanwhile, said he’s a little nervous about how fast and boldly the Fed is moving, but noted he’s “cautiously optimistic” the U.S. can avoid a recession.

2. What’s going on in the UK?

British Prime Minister Liz Truss, who took office in September, has announced a sweeping program of economic reforms.

David Dee Delgado | Reuters

It’s a mess, for one, and it may well become something worse. New UK Prime Minister Liz Truss’s government rolled out a debt-funded “trickle down” economic package that features historically massive tax cuts. The Bank of England, meanwhile, has been reluctant to raise rates to battle surging inflation, even as it plans to scale back its balance sheet. Lenders are pulling some mortgage deals, as well. The economic plan, which became known Friday, triggered a steep market selloff in the UK, while the pound tanked against the dollar. Analysts and experts have said there’s no evidence the package would boost the economy. Some have warned of a potential crisis. Former U.S. Treasury Secretary Larry Summers, who warned that inflation would surge during recent stimulus pushes, was especially harsh. “A currency crisis in a reserve currency could well have global consequences. I am surprised that we have heard nothing from the IMF,” he said.

3. Suspicious votes in Ukraine

Drone footage shows long queues of vehicles on the way to exit Russia on its border with Georgia, in Verkhny Lars, Russia, September 26, 2022, in this still image obtained from a video.

The Insider | via Reuters

4. Biden’s bid to boost competition

U.S. President Joe Biden, seated between Defense Secretary Lloyd Austin and Secretary of Health and Human Services (HHS) Xavier Becerra, delivers remarks at a meeting of the White House Competition Council in the State Dining Room of the White House in Washington, September 26, 2022.

Jonathan Ernst | Reuters

5. A song of vice and rye

Hometown Deli, Paulsboro, N.J.

Mike Calia | CNBC

“The pastrami must be amazing.” With those words in a letter to investors, hedge fund honcho David Einhorn kicked off a period of public fascination with the so-called $100 million New Jersey deli and the publicly traded shell company that owned it. The saga, which CNBC chronicled over the months after Einhorn’s letter, took its most drastic turn yet Monday. Federal prosecutors said they had charged three men with a stock manipulation and fraud scam, dating back to 2014, that centered around the shop, the now-closed Your Hometown Deli in Paulsboro. The SEC also sued the men over the alleged scheme. After the news about the indictments broke, Einhorn weighed in again. “I guess the pastrami wasn’t so great,” he tweeted. “I never really got a chance to try it.”

– CNBC’s Jesse Pound, Elliot Smith, Holly Ellyatt, Chelsey Cox and Dan Mangan 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.





Read More: 5 things to know before the stock market opens Tuesday, September 27

You might also like
A note to our visitors

This website has updated its privacy policy in compliance with changes to European Union data protection law, for all members globally. We’ve also updated our Privacy Policy to give you more information about your rights and responsibilities with respect to your privacy and personal information. Please read this to review the updates about which cookies we use and what information we collect on our site. By continuing to use this site, you are agreeing to our updated privacy policy.