Futures Inch Lower
US stock futures are showing a slight decline as the market gears up for a new month after a turbulent August. As of 08:59 GMT (04:59 EST), futures saw a dip: 123 points or 0.3%, 21 points or 0.4%, and 72 points or 0.4%. Notably, Wall Street was closed on Monday for Labor Day, and despite a challenging start, August wrapped up on a high note with a 2.3% increase. This marked the fourth consecutive month of gains despite initial recession fears. The 30-stock and tech-heavy indices also posted gains, indicating a resilient market performance.
Harris Voices Opposition to US Steel-Nippon Steel Deal
Kamala Harris has expressed her intention to block Japan's Nippon Steel's $14.9 billion bid for U.S. Steel. Speaking in Pennsylvania, a pivotal state for the upcoming 2024 elections, she emphasized that U.S. Steel should remain under American ownership. This position is backed by both President Joe Biden and former President Donald Trump, highlighting a rare bipartisan consensus. The United Steelworkers union supports this stance, citing potential risks to national security and domestic jobs. Despite the pushback, both companies advocate for the takeover, believing it would strengthen the U.S. steel sector.
Tesla Planning Six-Seat Model Y in China
Tesla is strategizing to launch a six-seat variant of its Model Y in China by late 2025. This is part of a broader initiative to revitalize its top-selling electric vehicle amidst escalating competition from local EV manufacturers. Tesla has advised its suppliers to prepare for increased production at its Shanghai factory, which may soon expand its operations. The new Model Y aims to capitalize on the growing demand, as evidenced by a significant 6% rise in Model 3 deliveries in the first half of the year. August marked Tesla's best sales month in China this year, with a remarkable 37% increase from July.
Brazil's President Backs X Ban
Brazilian President Luiz Inácio Lula da Silva supports the Supreme Court's decision to ban Elon Musk's X platform, citing non-compliance with hate-speech regulations. This move has sparked controversy, with Musk labeling a Supreme Court Justice as a "dictator" and investors, including Bill Ackman, expressing concerns over Brazil's market stability. Additionally, the court has frozen bank accounts linked to Musk's Starlink, following unpaid fines.
Crude Prices Show Mixed Trends
Crude oil prices are experiencing mixed movements as traders assess various factors. While futures dropped 0.1% to $77.42 per barrel, WTI futures slightly increased by 0.2% to $74.17. This fluctuation is attributed to China's economic slowdown, reflected by a six-month low in its purchasing managers' index, which may reduce crude demand. However, supply disruptions in Libya are providing some price support, as production and exports have been halted.
