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5 things to know before the stock market opens Tuesday

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

1. Stress and confusion

Investors are looking for clarity after a few days of dramatic turns. Monday was a mess as markets tried to figure out the ramifications of the Signature Bank and Silicon Valley Bank shutdowns. The Dow finished down, marking its fifth straight losing day, while the Nasdaq managed to squeak out a slight win. Regional bank stocks took a huge hit as the government’s actions to limit the fallout from Silicon Valley Bank and Signature failed, at least for the moment, to reassure investors and depositors alike. First Republic, for instance, fell a whopping 62% on Monday. Yet, those stocks could be in store for a rebound Tuesday. Follow live markets updates.

2. Where do rates go from here?

Federal Reserve Chair Jerome H. Powell testifies before a House Financial Services hearing on “The Federal Reserve’s Semi-Annual Monetary Policy Report” on Capitol Hill in Washington, U.S., March 8, 2023. 

Kevin Lamarque | Reuters

The Federal Reserve is still on track to raise its benchmark interest rate by a quarter point next week, despite the second- and third-biggest bank failures in history. As of Monday, even with the turmoil in the market, especially among regional banks, traders saw an 85% probability that the rate hike would still happen as the central bank tries to cool inflation. Goldman Sachs stood out as the contrarian voice, however, arguing that Fed Chairman Jerome Powell and crew will hold off for now on a rate increase. “We think Fed officials are likely to prioritize financial stability for now, viewing it as the immediate problem and high inflation as a medium-term problem,” Goldman said in a note to clients. The Fed’s next policy-setting meeting is scheduled for March 21-22.

3. Eyes on CPI

A shopper browses meat department at a Los Angeles supermarket on Feb. 13, 2023 in Los Angeles.

Mario Tama | Getty Images News | Getty Images

4. Special delivery

Travelers wait for an Uber rideshare vehicle at Los Angeles International Airport (LAX) on February 8, 2023 in Los Angeles, California. 

Mario Tama | Getty Images

Shares of Uber, Lyft and DoorDash all jumped in off-hours trading after a California appeals court allowed such companies to treat their drivers as independent contractors and not employees. The decision upheld a measure called Proposition 22, which California voters approved in November 2020 after a costly campaign on which ride-share and delivery companies spent more than $180 million. Monday’s ruling overturned a lower court’s rejection of Proposition 22, which was contested by a group of rideshare drivers. The measure exempts Uber and others from following several compensation laws.

5. Ukraine-Russia grain deal extended

Local residents of the village of Bohorodychne walk on a destroyed bridge over the Siversky Donets to retrieve bread from the other bank, in Bohorodychne, Donetsk Oblast, on March 10, 2023, amid Russia’s military invasion on Ukraine. (Photo by ANATOLII STEPANOV / AFP) (Photo by ANATOLII STEPANOV/AFP via Getty Images)

Anatolii Stepanov | Afp | Getty Images

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