Here are the most important news, trends and analysis that investors need to start their trading day:
1. Stocks set to open higher as Wall Street attempts another rally
Traders work on the floor of the New York Stock Exchange.
U.S. stock futures rose on Thursday after a failed rebound attempt the previous day as the Dow Jones Industrial Average, S&P 500 and Nasdaq all fell at the close. Throughout the past week, the S&P 500 has seen its worst weekly performance since March 2020, the month the Covid pandemic was declared. Growing concern on Wall Street about a recession following the Federal Reserve’s increased fight against inflation has gutted stocks, with the S&P 500 confirming earlier this month that a bear market had begun in early January. .
2. Powell is back on Capitol Hill after saying a recession is possible
Federal Reserve Chairman Jerome Powell reacts during testimony before a Senate Banking, Housing, and Urban Affairs Committee hearing on the ‘Semi-Annual Report on Monetary Policy to Congress’, on Capitol Hill in Washington, DC , USA, June 22, 2022.
Elizabeth Frantz | Reuters
Fed Chairman Jerome Powell returns to Capitol Hill Thursday for the second day of his semiannual monetary policy testimony. He is appearing before the House Financial Services Committee, a day after he told the Senate Banking Committee on Wednesday that the central bank had the “determination” to rein in inflation that has soared to 40-year highs. Powell also told senators on Wednesday that he believed the economy was strong now, but a recession could come.
- Money fleeing equities due to recession fears has recently been piling up in bonds, driving up prices and lowering yields. The 10-year Treasury yield fell Thursday to just over 3.1%, its lowest level in nearly two weeks. The benchmark yield topped 2011 highs near 3.5% last week after the Fed’s biggest interest rate hike since 1994 and a first rally in equities.
3. United plans to temporarily cut flights from Newark airport
A United Airlines passenger plane lands at Newark Liberty International Airport in Newark, New Jersey on January 19, 2022.
Tayfun Coskun | Anadolu Agency | Getty Images
United Airlines will announce on Thursday a temporary reduction of about 50 daily domestic departures from its airport hub in Newark, New Jersey, starting July 1, to address congestion and as concerns grow over cancellations. Summer cuts account for 12% of United’s 425 daily flights to Newark, one of three major airports near New York. The airline told Reuters the changes would not result in the carrier exiting the markets. Meanwhile, American Airlines plans to drop service to four US cities in September, including Dubuque, Iowa, which will lose scheduled commercial air service altogether.
4. Big Oil summoned to White House for emergency gas price meeting
U.S. President Joe Biden delivers remarks on efforts to reduce high gas prices in the South Court Auditorium of the Eisenhower Executive Office Building June 22, 2022 in Washington, DC.
jim watson | AFP | Getty Images
Major U.S. oil refiners will meet with U.S. Energy Secretary Jennifer Granholm and other Biden administration officials on Thursday on how to slash record gasoline prices, which are squeezing U.S. consumers. The emergency meeting comes a day after President Joe Biden called for a federal gas tax holiday that looked dead upon his arrival on Capitol Hill. The rally also follows weeks of Biden bashing Big Oil for reaping huge profits from a fuel supply crisis exacerbated by Russia’s invasion of Ukraine.
5. Russian Currency Hits 7-Year Highs, Just Months After Crash
A Russian ruble coin is pictured in front of Saint Basil’s Cathedral in central Moscow on April 28, 2022.
Alexander Nemenov AFP | Getty Images
The Russian ruble hit its highest level since May 2015, with 53.4 rubles bought for $1 on Thursday, an increase of about 2% from the previous session. It’s a world away from the Russian currency’s plunge to 139 to the dollar in early March, when the United States and European Union began applying unprecedented sanctions on Moscow in response to its invasion of Ukraine. . The Kremlin called the recent surge in the ruble “proof” that Western sanctions don’t work.
—CNBC Peter Schacknow, Tanaya Machel, Sarah Min, pippa stevens, Jeff CoxSam Meredith and Natasha Tourak as well as Reuters contributed to this report.
— Register now for the CNBC Investing Club to follow Jim Cramer’s every stock market move. Follow the evolution of the market like a pro on CNBC Pro.