Here are the most important news, trends and analysis that investors need to start their trading day:
1. Dow set to rebound after Monday’s sharp decline
A trader works on the floor of the New York Stock Exchange (NYSE) in New York, U.S., on Monday, Sept. 20, 2021.
Michael Nagle | Bloomberg | Getty Images
Dow futures rebounded 300 points Tuesday, one day after the 30-stock average slumped more than double that, exacerbating Wall Street’s September slide. The Dow ended 614 points, or nearly 1.8%, lower in its worst session since July. The Dow was down 971 points at Monday’s low, which had been almost 5.7% below last month’s intraday all-time high. Investor concern about a range of risks, including this week’s Federal Reserve meeting, elevated Covid cases in the U.S., debt ceiling brinkmanship in Washington, and possible financial market contagion from embattled Chinese developer Evergrande. The Nasdaq and S&P 500 on Monday had their worst days since May, sinking 2.2% and 1.7%, respectively. Both were also off more than 5% from their all-time intraday highs from earlier this month.
2. Fed to get new housing data as meeting begins
New townhomes are seen under construction while building material supplies are in high demand in Tampa, Florida, May 5, 2021.
Octavio Jones | Reuters
The Fed gets a read on the real estate market at 8:30 a.m. ET as they begin their two-day September policy meeting. Economists expect August housing starts to increase 1% after a 7% drop in the prior month. Building permits are seen falling 2.1% in August compared to a 2.6% increase in July. Central bankers will put that data into the mix as they consider when to start tapering their massive Covid-era bond purchases. Hotter inflation, which Fed Chairman Jerome Powell sees as temporary, will be weighed against a recovering economy. However, a big disappointment in August job growth could keep the Fed at bay a little longer. Central bankers release their policy statement Wednesday, followed by a Powell news conference.
3. Democrats pair debt ceiling, spending in one bill
Speaker of the House Nancy Pelosi, D-Calif., conducts news conference in the Capitol Visitor Center with House Democrats on achievements including the For The People Act and the agenda for the remainder of the year, on Friday, July 30, 2021.
Tom Williams | CQ-Roll Call, Inc. | Getty Images
Democratic congressional leaders said they will try to pass a bill that both prevents a government shutdown and suspends the U.S. debt limit through the end of 2022. They’re trying to simultaneously dodge two possible crises. Congress faces a Sept. 30 deadline to fund the federal government. Treasury Secretary Janet Yellen has told lawmakers the U.S. will likely not be able to pay its bills sometime in October if lawmakers don’t suspend or raise the debt ceiling. Senate Minority Leader Mitch McConnell, R-Ky., has been trying to force Democrats to use their slim Senate and House majorities to deal with the debt ceiling on their own.
4. Biden to address the U.N. about Covid, climate
U.S. President Joe Biden meets with United Nations Secretary-General Antonio Guterres at the 76th Session of the U.N. General Assembly in New York, September 20, 2021.
Kevin Lamarque | Reuters
Joe Biden on Tuesday planned to use his first address as U.S. president to the U.N. General Assembly to call on allies to cooperate on challenges, including Covid and climate change. Eight months into his presidency, Biden has been out of sync with allies on the chaotic ending to the U.S. war in Afghanistan. He has faced differences over how to go about sharing coronavirus vaccines with the developing world and over pandemic travel restrictions. Biden also finds himself in the midst of a spat with France over a deal to sell Australia submarines.
5. J&J reveals booster data; Uber raises Q3 outlook
A vial of Johnson & Johnson’s Janssen COVID-19 vaccine
Pacific Press | LightRocket | Getty Images
Johnson & Johnson is among stocks on the move in Tuesday’s premarket trading. Shares of J&J rose about 1% after the company said a booster shot of its Covid vaccine is 94% effective in the U.S. when administered two months after the first dose. Six months out from the first shot, a J&J booster appears to be potentially even more protective. Some 14.8 million people in America have received the company’s single-dose vaccine so far.
Uber CEO Dara Khosrowshahi speaks at a product launch event in San Francisco, California on September 26, 2019.
Philip Pacheco | AFP via Getty Images
Shares of Uber rose 5% after the ride-hailing and food delivery firm revised higher its outlook for its third quarter. Uber said it now expects adjusted EBITDA — earnings before interest, taxes, depreciation and amortization — of between a loss of $25 million and a profit of $25 million. Uber previously said it expected adjusted EBITDA for Q3 to be better than a loss of $100 million.
— The Associated Press contributed to this report. Follow all the market action like a pro on CNBC Pro. Get the latest on the pandemic with CNBC’s coronavirus coverage.