5 issues to know earlier than the inventory market opens Monday, July 26

Here are the key news, trends, and analysis investors need to start their trading day:

1. Dow futures reduced heavy overnight losses after Friday’s records

Trader on the New York Stock Exchange, July 20, 2021.

Source: NYSE

Dow futures fell about 150 points on Monday, halving overnight losses as stocks tumbled in Hong Kong and China on concerns over government crackdown on education and real estate.

A big week ago for tech stocks on Wall Street Dow Jones industry average Closed for the first time on Friday over 35,000. Four days full of winnings of Last Monday’s slump of more than 2% was more than obliterated as increased concerns about an increase in Covid cases due to the Delta variant briefly hit the market. That S&P 500 and Nasdaq also closed at record highs on Friday.

The Fed’s two-day July meeting is slated to begin on Tuesday. Investors will be looking for signals about when central bankers may start tightening monetary policy and how they view rising inflation. That 10-year government bond yield ticked below Monday to around 1.25%. The yield, which is contrary to the price, hit a 5½-month low of almost 1.13% last week.

2. Asian stocks fueling Chinese regulatory concerns, US talks

A person wearing a protective mask walks past the sign for Hong Kong Exchanges & Clearing Ltd. (HKEX) on display at the Exchange Square complex in Hong Kong, China on Wednesday August 19, 2020.

Roy Liu | Bloomberg via Getty Images

Hong Kong Hang Seng Inventory list more than 4% fueled over night. Mainland Chinese stocks also fell Shanghai composite and Shenzhen component each decreased by over 2%.

Lots of Chinese education stocks with listings in Hong Kong and the US lost about half of their value after Beijing announced new rules on Friday that exclude for-profit tutoring in core subjects to ease financial pressure on families. Chinese regulators also took steps on Friday to clean up irregularities in the real estate market.

Contribute to uncertainty, a meeting of high-level Chinese and US officials, got off to a bumpy start. During talks with US Secretary of State Wendy Sherman on Monday, Chinese Vice Secretary of State Xie Feng said relations between the two nations were in a “state” and urged America to “change its highly misguided mindset.”

3. Bitcoin is trading to a six-week high of nearly $ 40,000

An illustration showing physical imitation banknotes and coins of the cryptocurrency Bitcoin.

Ozan Kose | AFP via Getty Images

Bitcoin rose on Monday to its highest level since mid-June, Trade up to nearly $ 40,000before pulling some back to under $ 39,000. Traders hoped Last week’s positive comments from cryptocurrency enthusiasts, including Tesla CEO Elon Musk and Twitter CEO Jack Dorsey, would get Bitcoin back on track. Bitcoin hit an all-time high of nearly $ 65,000 in mid-April. On June 22nd, Bitcoin briefly went negative for the year, dropping below $ 29,000. The inventors will see how Bitcoin’s wild ride can affect Tesla’s quarterly results. Musk’s Tesla, who owns the crypto on its corporate balance sheet, should report Monday after the bell.

4. The Delta variant leads to an increase in Covid cases in all 50 states and DC

The intensive care nurse Emily Boucher, who works in the intensive care unit at Johnston Memorial Hospital, takes care of Covid patient Hannah Church (25), who was first diagnosed with the coronavirus on May 30, June 16, 2021 in Abingdon, VA.

Kathernine Frey | The Washington Post | Getty Images

Covid cases are on the rise in all 50 states and the District of Columbia, as the Delta variant is spreading rapidly in the United States. Cases hit a 15-month low in late June before infections began to rise. Vaccination rates peaked in April and have declined significantly in recent months. The Chief Medical Advisor to the White House, Dr. Anthony Fauci said Sunday that Americans have weakened immune systems could end up needing a booster for Covid vaccines. Fauci told CNN that health officials are considering revising mask guidelines for vaccinated people in the US

5. Senators say they are entering into a bipartisan infrastructure deal

U.S. President Joe Biden speaks to the press after meeting with the Senate Democrats to support his infrastructure and business investment goals during a Democratic lunch at the U.S. Capitol on July 13, 2021 in Washington, DC, July 14, 2021 to win.

Andrew Caballero-Reynolds | AFP | Getty Images

Senators are running for the conclusion of a bipartisan infrastructure agreement already on Monday, when pressure increased from all sides to show progress with the president Joe Biden‘s top priority. Leading Republican Negotiator, Ohio Sen. Rob Portman, said the two sides came to an agreement “around 90% of the way there”. A top Democrat, Sen. Mark Warner of Virginia said he hoped a final bill would be ready by Monday afternoon. The White House wants a bipartisan agreement for this first phase of infrastructure. But as the talks drag on, concerned Democrats, who have little control over the House and Senate, could leave Republicans behind and try to go it alone.

– Reuters and The Associated Press contributed to this report. Follow the entire market like a pro CNBC Pro. Find out about the pandemic with CNBC’s coronavirus coverage.