5 things to know before the stock market opens on 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 investors need to start their trading day:

1. Stocks try to shake off again

US Stock Futures they were headed to a higher open Tuesday after another loss 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 all-time high. The Cboe Volatility Index, also known as the VIX or the “Fear Indicator,” hit on Monday its highest level since mid-June, the last time the markets were in the pits this year. In the world of the Fed, where policymakers are eager to stifle price increases with rate hikes, Cleveland Fed President Loretta Mester said inflation was “unacceptably high.” Meanwhile, Chicago Fed President Charles Evans said he is a bit nervous about how fast and bold the Fed is moving, but noted he is “cautiously optimistic” on the US. can avoid a recession.

2. What is happening in the UK?

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

David Dee Delgado | Reuters

It is a disaster, for one, and may well become Something worse. The government of new UK Prime Minister Liz Truss has launched a debt-financed “leakage” economic package featuring historically massive tax cuts. Meanwhile, the Bank of England has been reluctant to raise rates to combat rising inflation, even as it plans to shrink its balance sheet. The lenders are taking out some mortgage deals, also. The economic plan, which was unveiled on Friday, triggered a sharp sell-off in the UK market as the British pound sank against the dollar. Analysts and experts have said there is no evidence the package boosts the economy. Some have warned of a possible crisis. Former US Treasury Secretary Larry Summers, who warned that inflation would rise during recent stimulus pushes, it was especially hard. “A currency crisis in a reserve currency could well have global consequences. I’m surprised we haven’t heard from the IMF,” she said.

3. Suspicious votes in Ukraine

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

The initiate | via Reuters

4. Biden’s bid to boost competition

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

jonathan ernst | Reuters

5. A Song of Vice and Rye

Hometown Deli, Paulsboro, NJ

Mike Calia | CNBC

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

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

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