5 things to know before the stock market opens Wednesday, July 6

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

US stock futures were mainly Flat across the board on Wednesday morning, after a late hike the day before. While the Dow closed lower on Tuesday, the S&P 500 closed slightly higher. The Nasdaq, fueled by technology stocks, fared better, rising 1.75% on the day. Energy names were the biggest losers on Tuesday, as investors weighed the potential impact of the economic slowdown on fuel demand. Oil prices also fell, breaking below $100 a barrel for the first time since May.

Investors have plenty of data and reports to sort through on Wednesday as markets weigh a potential recession. At 2 p.m. ET, the Federal Reserve is set to release the minutes of its June 14-15 meeting, giving insight into the central bank’s strategy to raise interest rates in its battle against 40-year high inflation. PMI data is due at 9:45 AM ET. At 10 a.m., both the ISM Services Index and the Job Opportunity and Employment Turnover Survey, or JOLTS, are scheduled to be released.

British Prime Minister Boris Johnson confronts him The biggest political crisis yet. Several officials in his government, including the finance minister and health minister, resigned last day, citing mistrust in his leadership after multiple scandals. A growing number of Johnson’s Conservative colleagues are calling for him to step down as well, although he has shown no indication he would. The turmoil affected the pound, which reached its lowest level since March 2020, when the Covid-19 pandemic was declared.

The bond market seems to have Warning to the US economy. The yield on two-year Treasury bonds jumped higher than the yield on 10-year bonds, inverting what is known as the yield curve. When that happens, it’s usually an indication that a recession is coming soon — or that it has already begun. Revenues also increased early Wednesday morning.

Demand for mortgages decreased Week after week, even with slightly lower prices. Amid some signs of a slowdown in the housing market, prices remain high and supply is tight. The rates are also much higher than during the Covid pandemic. “The buying activity is hampered by ongoing affordability challenges and low inventory,” said Joel Kahn of the Mortgage Bankers Association.

– CNBC’s Tanaya Machel, Holly Eliat, Elliot Smith, Patti Dome and Lisa Rizzolo contributed to this report.

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