5 things to know before the stock market opens on Thursday, September 1

Loretta Mester, President and CEO of the Cleveland Federal Reserve, delivers a keynote address at the 2014 Financial Stability Conference on December 5, 2014 in Washington.

Gary Cameron | Reuters

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

1. Stocks cannot be shaken

That’s all for the new start in September. US stock markets geared up for another sell-off on Thursday morning after ending August with a losing streak. After a terrible first half, stocks looked promising this summer. Inflation eased, but only marginally. The Federal Reserve is ready to raise interest rates further. Currently, the Fed’s benchmark interest rate ranges from 2.25% to 2.5%, but Cleveland Fed President Loretta Mester said Wednesday that he expects rates to rise significantly to above 4%. said. Also, she doesn’t expect the central bank to cut rates next year. The Fed is expected to raise rates by another 3/4 point later this month.

2. Nvidia Falls Under U.S. Repression

A sign in front of Nvidia headquarters in Santa Clara, California, May 10, 2018.

Justin Sullivan | Getty Images

Nvidia shares fell in after-hours trading after the chip maker said the US government was restricting sales to China over concerns that the Chinese military would use its products. Nvidia said it expects to lose about $400 million in revenue from China this quarter. In recent years, the United States has tried to crack down on China’s misuse of American technology. Last month, President Joe Biden signed into law a bipartisan bill aimed at boosting the U.S. chip-making sector to make America more competitive in its economic battle with China.

3. Warehouse club inflation

A customer stocks up on bottled water at Sam’s Club on July 21, 2022 in the heat wave in Houston, Texas.

Brandon Bell | Getty Images

Even Walmart’s warehouse chain, Sam’s Club, is immune to inflation. The company announced Wednesday that it will raise entry-level membership fees for Sam’s Club for the first time in nine years. Beginning October 17th, membership will increase from $45 to $50 annually. Warehouse stores are doing well these days as inflation-sick shoppers buy in bulk to save on essentials. Walmart’s decision could put pressure on Sam’s Club rival Costco. He said he didn’t think it was “the right time” to raise membership fees, or the price of famously cheap hot dogs.

4. FDA Approves Omicron Variant Booster

The UK has become the first country in the world to approve Moderna’s bivalent Covid-19 vaccine. It covers both the original strain of the virus and new Omicron variants.

Long Visual Press | Universal Images Group | Getty Images

The FDA has approved a new round of Covid booster shots targeting the highly contagious Omicron BA.5 variant. The decision comes at a time when children are returning to school and many businesses are urging employees to return to the office in earnest. Experts expect Covid cases to rise this fall and winter, even though death rates are declining.Officials also said new boosters from Pfizer would be approved for those over the age of 12. It states that For those 18 and older, Moderna should provide more lasting protection with lower hospitalization rates.

5. Attack threatens inspection of Ukrainian nuclear power plant

Ukrainian President Volodymyr Zelensky shakes hands with International Atomic Energy Agency (IAEA) Director General Rafael Mariano Grossi, who is leading the planned mission to the Zaporizhia nuclear power plant, in Kyiv, Ukraine, August 30, 2022.

Press Office of the President of Ukraine | via Reuters

A UN inspectorate has postponed an inspection of Ukraine’s Zaporizhia nuclear power plant amid fighting between Russian and Ukrainian forces nearby. Ukraine’s state-owned nuclear power company said a nearby shelling had also shut down the plant’s fifth reactor. The facility has been occupied by Russians, who Ukrainian officials have accused of trying to undermine the visit of inspectors. Ukrainian President Volodymir Zelensky, who welcomed the UN team on Wednesday, warned that the plant is vulnerable to a nuclear catastrophe as his forces seek to repel the invading forces of Russian President Vladimir Putin. .

— CNBC’s Sarah Min, Kif Leswing, Melissa Repko, Spencer Kimball, and Holly Ellyatt contributed to this report.

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