Here are the most important news items that investors need to start their trading day:
1. Fretting over the Fed
Stocks are limping into Monday. The three major U.S. averages have all posted at least two straight losing weeks. Last week, higher-than-expected inflation readings fueled investor concerns that the Federal Reserve may wait longer than hoped to start cutting interest rates. All eyes are on the Fed as it kicks off its two-day policy meeting Tuesday. The central bank is expected to leave rates unchanged, and it could provide clues about its future policy decisions. Only a handful of major companies, led by Nike and FedEx, will report earnings this week. Follow live market updates here.
2. Shutdown approaches
Congress is, yet again, tempting a partial government shutdown. Lawmakers have until Friday to pass appropriations bills or let funding lapse for six departments, including Defense, Treasury and State. Congress earlier this month passed bills to fund a handful of other agencies just before they were set to shut down. It’s a busy stretch on Capitol Hill. The rush to avoid a shutdown comes as the Senate considers whether to approve a House-passed bill that aims to force Chinese company ByteDance to sell TikTok.
3. Putin wins another term
Russian President Vladimir Putin secured another six-year term on Sunday, winning roughly 88% of the vote in an election that offered no serious alternatives. A handful of Western leaders described the result, which solidified Putin’s grip on power, as “illegitimate” or a “farce.” The election comes as Putin, 71, pushes on with his invasion of Ukraine more than two years into the offensive.
4. Limited coverage
Novo Nordisk’s popular weight loss drug Wegovy was approved in the U.S. for heart health benefits. But insurers may not expand coverage of the treatment yet, despite that additional use. As some health plans consider whether to cover the drug, they may balk at its monthly price of more than $1,000. But certain state Medicaid programs may be more likely to cover the treatment for cardiovascular use.
5. Tech turmoil
Laid-off tech workers are describing a sense of despair as they try to find work after a brutal stretch for employees in the sector. More than 200 tech companies have laid off more than 50,000 workers so far this year. It follows a 2023 that saw the most job cuts in the tech sector since the dot-com crash in 2001. The workers who lost their jobs now face a competitive market for roles that may pay less than the ones they previously held.
– CNBC’s Brian Evans, Rebecca Picciotto, Natasha Turak, Annika Kim Constantino and Alex Koller contributed to this report.
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