Here are the most important news, trends and analysis that investors need to start their trading day:
1. Stock futures plummet after comments by Fed chief Powell
Traders on the floor of the New York Stock Exchange.
Source: NYSE
US stock futures fell on Thursday after Federal Reserve Chairman Jerome Powell told NPR’s “Morning Edition” that Covid’s economic stimulus and vaccines have allowed the US economy to recover faster than expected and that central banks may at some point be able to withdraw emergency support.
Sales at the end of the day reversed gains and dragged the S&P 500 down 0.6% on Wednesday. The Dow Jones Industrial Average fell in the closing seconds of Wednesday’s session. Nasdaq fell 2% after a slightly higher opening gave way to a day of sales. Technology stocks have declined despite the 10-year Treasury yield remaining below the recent 14-month high, as the high-growth name market continues to rotate. Nasdaq closed with a record for the last time in February. The Dow and S&P 500 last closed at record highs last week.
The Department of Labor is due to report its weekly analysis of unemployment insurance claims at 8:30 am Eastern time, one hour before the stock market opens. Economists expect 735,000 new claims for unemployment insurance last week. That would be a drop of 35,000 from the previous week, which saw an unexpected jump, even as many states relaxed Covid’s mitigation restrictions on companies.
2. AstraZeneca reviews data on Covid vaccine with lower efficacy rate
A healthcare professional is preparing to inject a vaccine against AstraZeneca coronavirus disease (COVID-19).
Eloisa Lopez
AstraZeneca released updated figures for the Covid vaccine from its last testing stage in the U.S. and Latin America after US health officials earlier this week questioned the accuracy of the preliminary data. The UK-based drug giant now says its vaccine is 76% effective at protecting against symptomatic cases of viruses. A statement released on Monday reported an 79% effectiveness rate. AstraZeneca reiterated that its two-dose regimen was “well tolerated” among the participants and no safety concerns were identified.
3. Biden to hold first presidential press conference
US President Joe Biden replaces his face mask after an Equal Pay Day event at the South Court Auditorium in the Eisenhower Executive Office Building on March 24, 2021 in Washington, DC.
Chip Somodevilla | Getty Images
The White House announced on Thursday that it is dedicating another $ 10 billion to try to increase vaccination rates in low-income, minority and rural communities. More than 25% of the entire US population received at least one dose of vaccine, including 14% who were fully vaccinated. The Pfizer and Moderna vaccines require two injections, while the Johnson & Johnson vaccine is just one injection.
Against the backdrop of rising Covid cases in many states and more than 30 million infections in the United States, President Joe Biden is due to hold his first presidential press conference. It should aim for an increase in vaccines, encouraging signs in the economy and the benefits that Americans will receive from the latest comprehensive stimulus package. He must also tackle a wide range of issues, from US-Mexico border security to gun control after the mass shootings in Colorado and Georgia.
4. Oil prices fall as Covid’s concerns overcome Suez Canal outages
Cropped satellite images captured on March 23, 2021 show the container ship Ever Given blocking the Suez Canal in Egypt.
Planet Labs
Oil prices fell on Thursday, with resurgence of concerns about fuel demand, along with concerns about the setback in the global fight against Covid. American benchmark oil prices West Texas Intermediate and international Brent fell by about 2%, a day after they rose almost 6% in navigation disruptions caused by the stranding of a giant container ship on the Suez Canal, an important route of oil trade. It may take weeks to clean up, according to the CEO of a Dutch company that is helping with rescue efforts.
5. Legislators should pressure technology CEOs on discourse and disinformation
Facebook CEO Mark Zuckerberg testified before the Judicial Subcommittee of the Competition, Commercial and Administrative Law Chamber during a hearing on “Online Platforms and Market Power” at the Rayburn House office building in Capitol Hill, Washington, DC , July 29, 2020.
Mandel Ngan | Pool via Reuters
Big Tech leaders on Thursday are expected to testify in a virtual Chamber hearing on efforts to prevent their platforms from spreading falsehoods and inciting violence. Facebook CEO Mark Zuckerberg, Twitter CEO Jack Dorsey and Alphabet CEO Sundar Pichai, whose company owns Google and YouTube, will face further pressure after the January 6 uprising on the United States Capitol and the increased misinformation about the Covid vaccine. There is growing support in Congress for the imposition of new restrictions on legal protections related to speeches posted online.
– The Associated Press and Reuters contributed to this report. Get the latest pandemic news with CNBC coronavirus blog.