Here are the top news, trends, and analysis investors need to start their trading day:
1. Wall Street looks stable after the comeback rally; GameStop pops
A view of the New York Stock Exchange building on Wall Street in downtown Manhattan in New York City.
Roy Rochlin | Getty Images Entertainment | Getty Images
US stock futures rose modestly on Tuesday, a day after the Dow recovered a large portion of its 3.5% decline from last week due to the shift in the Federal Reserve’s rate hike schedule. The 30-share average rose 586 points, or nearly 1.8%, earlier in the week. The S&P 500 gained 1.4%, within 1% of its record high. The Nasdaq was Monday’s relative underperformer, up 0.8%.
SELINSGROVE, PENNSYLVANIA, UNITED STATES – 01/27/2021: A woman walks past the GameStop store in the Susquehanna Valley Mall. An online group rocketed GameStop (GME) and AMC Entertainment Holdings Inc. (AMC) shares to suppress short sellers.
Photo by Paul Weaver / SOPA Images / LightRocket via Getty Images
GameStop shares rose 9% in the premarket after the video game retailer and Original Meme stock completed a previously announced sale of 5 million common shares that raised more than $ 1.1 billion. GameStop said it will use the proceeds for general corporate purposes, as well as investing in growth initiatives and maintaining a strong balance sheet.
2. Fed Chairman Powell will testify before the House of Representatives
Federal Reserve Chairman Jerome Powell speaks at a virtual press conference in Tiskilwa, Illinois on December 16, 2020.
Daniel Acker | Bloomberg | Getty Images
10-year government bond yields have rebounded since last week’s Fed-driven surge and brief decline to Monday’s February low. The 10-year yield ticked lower on Tuesday to around 1.47%. Fed chair Jerome Powell is going to a House panel this afternoon, and investors will be looking for more clues to policymakers’ rising inflation outlook and clues to two rate hikes in 2023.
In prepared testimony, Powell said the economy was growing but facing ongoing threats from the Covid pandemic. He also noted that inflation has risen noticeably, but the repeated price pressures will be temporary. The Fed has kept short-term lending rates near zero while buying at least $ 120 billion worth of bonds every month.
3. Bitcoin falls again, breaking below the important $ 30,000 level
This illustration from May 19, 2021 shows the virtual currency Bitcoin in front of a stock chart.
Given Ruvic | Reuters
Bitcoin fell more than 8% on Tuesday and was trading below $ 30,000. China’s renewed crackdown on the cryptocurrency industry has wiped nearly $ 300 billion in value from the entire digital currency market since Friday. As Beijing expanded its shutdown of Bitcoin mining operations, China’s central bank urged financial institutions not to offer any services related to crypto activities. Bitcoin is down more than 50% from its all-time high in April near $ 65,000.
4. EU opens antitrust investigation into Google’s advertising unit
A logo outside the Google Store Chelsea in New York, May 28, 2021.
Victor J. Blue | Bloomberg | Getty Images
The European Commission on Tuesday launched a new antitrust investigation into Alphabet’s Google to investigate whether the tech giant prefers its own online display ad technology services. As part of the investigation, the EU executive will assess the restrictions that Google places on the access of advertisers, publishers and other third parties to access data on user identity and behavior. Earlier this month, the French competition authority fined Google $ 262 million for abusing its market power in online advertising.
5. NYC Democrats will vote in Tuesday’s mayoral election
Mayoral candidates Eric Adams (L) and Andrew Yang
New York City Democratic voters go to the polls Tuesday to vote for their party’s mayoral candidate. Eight candidates – including the former presidential candidate Andrew Yang and the alleged top candidate Eric Adams – hope to replace the Democratic mayor Bill de Blasio, who can no longer run due to term restrictions. Tuesday’s Democratic primary, the winner of which is heavily favored against the GOP candidate in the November general election, is the first time the city has used a ranked selection. Voters will list their preferences in order for up to five candidates. Official results are not announced for weeks.
– NBC News contributed to this report. Follow the whole market like a pro on CNBC Pro. Get the latest on the pandemic with coronavirus coverage from CNBC.