5 things to know before the stock market opens on Wednesday

Here are the most important information investors need to start their trading day:

Federal Reserve Chairman Jerome Powell is due to speak at the Brookings Institution today, and investors will be on the lookout for any clues as to whether the central bank will slow or halt interest rate hikes. . After four consecutive 0.75 percentage point increases to rein in high inflation, many are expecting a smaller 0.5 percentage point increase at the Fed meeting next month. A pause in rate hikes, or a pivot, would likely send markets higher. Stock futures were up ahead of Powell’s speech and as the market waited for more economic data expected on Wednesday, including the ADP private payroll report and job vacancies and turnover survey. Staff.

As the electric vehicle market becomes increasingly crowded, Tesla’s dominance in the United States is eroding. The company’s cars accounted for 65% of new electric vehicles registered in the third quarter, up from 71% last year and 79% in 2020, according to S&P Global Mobility. By 2025, the firm predicts that figure will fall to less than 20%. Despite the declines, Tesla’s sales volume is expected to increase further in the coming years as electric vehicles gain popularity. And there is plenty of room for growth. Currently, electric models represent only 5.1% of the more than 10 million vehicles registered in the United States.

Congress leaders are set to pass a tentative agreement for railroad workers ahead of a strike deadline next month. President Joe Biden had called on Congress to intervene after talks between the railroads and four unions stalled over paid sick leave. Biden said he was hesitant to overturn the unions’ vote against the contract, but that a rail closure would “devastate” the economy. The House is expected to pass legislation to pass a deal on Wednesday. Senate Majority Leader Chuck Schumer, a Democrat from New York, also promised quick action in the Senate.

The chief executives of two grocery companies faced a series of questions during a congressional hearing about how their proposed merger could change the competitive landscape and the prices consumers pay at the store. Lawmakers noted that the proposed deal comes at a time when groceries are taking up a bigger chunk of American families’ budgets, with inflation pushing up the prices of everyday items. Kroger and Albertsons executives said merging their businesses would help them lower food prices and stay competitive as the industry undergoes dramatic change. “The best way to compete with mega-stores like Walmart and heavily capitalized online companies like Amazon will be to merge with Kroger,” Albertsons CEO Vivek Sankaran said during the hearing.

Lawyers for crypto lender BlockFi have expressed optimism that the firm is in a good position to save its business. A day after filing for Chapter 11 bankruptcy, BlockFi’s attorneys said in a court hearing on Tuesday that the company plans to reopen withdrawals as part of an effort to ” maximize customer recoveries”. The company’s collapse was precipitated by exposure to Alameda Research, the trading arm of FTX which borrowed hundreds of millions of dollars from BlockFi, and Three Arrows Capital, which filed for bankruptcy protection in July. The exposure to the two companies prompted clients to walk away, but lawyers said it was FTX’s plan to acquire BlockFi that ultimately landed it in bankruptcy proceedings.

– CNBC’s Carmen Reinicke, Michael Wayland, Lora Kolodny, Lori Ann LaRocco, Melissa Repko, Rohan Goswami and MacKenzie Sigalos contributed to this report.

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