U.S. stock futures faced one of the largest yearly premarket drops as investors were concerned with slowing growth, the spread of the delta variants and the possibility of the Fed tapering. Meanwhile, a “Lehman like” moment seems to be brewing in China, causing even more worries about whether China’s financial community can handle such a challenged.
This week, all eyes are on the Fed. The Federal Reserve’s two-day monetary policy meeting will end on Wednesday, which is when investors will get key updates on monetary policy.
Historically, September tends to be the worst month for markets.
China’s Evergrande conglomerate is still in focus. Shares plunged on debt fears as the struggling company is facing upcoming bond payments this week. Chinese officials are still refusing to bail out the company and investors are worry that China won’t be able to contain the collapse of the development conglomerate and the potential contagion its downfall might bring.
U.S. futures plunged in premarket trading on the concern over slowing growth and tighter monetary policy.
|S&P 500 Futures||4,354.50||-67.25||-1.52%|
U.S. Dollar and Treasuries
The yield on the 10-year Treasury fell six basis points. The dollar strengthened against a basket of major currencies.
|U.S. Dollar Index (DXY):||93.4||+0.21||+0.22%|
|U.S. 1 Year Treasury Bill||0.073%||0.002||0.071%|
|U.S. 2 Year Treasury Note||0.214%||-0.008||0.222%|
|U.S. 5 Year Treasury Note||0.823%||-0.037||0.860%|
|U.S. 10 Year Treasury Note||1.316%||-0.055||1.371%|
|U.S. 20 Year Treasury Bond||1.794%||-0.060||1.854%|
|U.S. 30 Year Treasury Bond||1.848%||-0.057||1.906%|
Stocks To Watch
Shares of SmileDirectClub, a teledentistry company, rose in premarket trading on retail investor interest.
Verastem Oncology announced a partnership with Amgen to conduct a study on VS-6766 in combination with LUMAKRASTM in patients with KRAS G12C-mutant non-small cell lung cancer.
Shares of Zivo Bioscience were up almost 200% in premarket trading, after dropping 16% on Friday as the company filed a shelf registration for a public offering. Retail investors took advantage of the company’s low float – a low number of shares outstanding, which means that the stock is vulnerable to large price swings.
|Zivo Bioscience Inc.||ZIVO||$7.65||+4.850||+173.21%||4.65M|
Commodities To Watch
Oil dropped on concerns over global growth and the strengthening dollar. Gold strengthened.
|WTI Crude Oil||$70.42||-2.15%|
|Brent Crude Oil||$73.95||-1.84%|
Crypto markets are down as they are facing increasing scrutiny by U.S. regulators. The global crypto market cap is $1.96T, an 8.3% decrease over the last 24 hours. Bitcoin’s dominance is currently 42.69%, an increase of 0.42% in the same period.
|Symbol||Price||Chg. %||Market Cap.|