5 things to know before the stock market opens on Thursday

Cleveland Federal Reserve President and CEO Loretta Mester delivers her keynote address at the 2014 Financial Stability Conference in Washington on December 5, 2014.

Gary Cameron | Reuters

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

1. Shares can’t get rid of it

So much for a fresh start in September. US stock markets braced for another sell-off Thursday morning after the August close in a losing streak. Things looked promising for stocks this summer after a terrible first half of the year. Inflation eased, but only slightly – and that made the Fed ready to raise interest rates even more. Currently, the Fed’s benchmark interest rate is in the 2.25% to 2.5% range, but Cleveland Fed President Loretta Mester said Wednesday she sees rates rising significantly to more than 4%. Nor does it expect the central bank to cut interest rates next year. The Fed is expected to raise interest rates by another three-quarters of a point later this month.

2. Nvidia slips after US crackdown

A sign is placed in front of Nvidia’s headquarters on May 10, 2018 in Santa Clara, California.

Justin Sullivan | Getty Images

Nvidia shares fell in off-hours trading after the chip maker said the US government is restricting sales to China over concerns about the company’s products being used by the Chinese military. Nvidia said it expects to lose about $400 million in revenue from China during the current quarter. In recent years, the United States has sought to crack down on China from exploiting American-made technology. Last month, President Joe Biden signed a bipartisan bill aimed at boosting the US chip-making sector in an effort to bolster the country’s competitive strength in its economic struggle with China.

3. Warehouse club swell

A customer stores bottled water at Sam’s Club during a heat wave on July 21, 2022 in Houston, Texas.

Brandon Bell | Getty Images

Even Sam’s Club, a Walmart warehouse chain, isn’t immune to inflation. The company said Wednesday that it has raised entry-level membership fees for Sam’s Club for the first time in nine years. Starting October 17, members will pay $50 annually, up from $45. Warehouse stores have been doing well lately, with inflation-weary shoppers buying in bulk to save on essentials. Walmart’s decision could put pressure on Costco, Sam’s Club competitor, which charges $60 a year for its basic membership. In July, Costco CEO Craig Jelinek told CNBC he didn’t think it was “the right time” to raise the club’s fee — or the price it charges for the popular and inexpensive sausage.

4. FDA Approval of Variable Omicron Enhancers

Britain has become the first country in the world to adopt Moderna’s bivalent Covid-19 vaccine, which targets the original strain of the virus and the newer Omicron variant.

Long visual press | global photo collection | Getty Images

The US Food and Drug Administration (FDA) has approved a new round of Covid-boosted shots targeting the highly pathogenic omicron BA.5 variant. The decision came as children returned to school and many companies pushed their employees back to the office in earnest. Experts expect COVID-19 cases to rise this fall and winter, despite lower death rates. Officials also said that the new boosters – Pfizer are licensed to people 12 and older; Moderna for 18 years and over – must provide lasting protection while keeping hospitalization rates low.

5. Attacks threaten inspection of Ukraine nuclear plant

Ukrainian President Volodymyr Zelensky shakes hands with International Atomic Energy Agency Director General Rafael Mariano Grossi, who will head a planned mission to the Zaporozhye nuclear plant, as Russia’s attack on Ukraine continues, in Kyiv, Ukraine on August 30, 2022.

Ukrainian Presidential Press Service | via Reuters

United Nations inspectors have postponed their inspection of Ukraine’s Zaporizhzhya nuclear power plant amid close fighting between Russian and Ukrainian forces. Ukraine’s state nuclear power company said the plant’s fifth reactor was also shut down due to the nearby bombing. The Russians are occupying the facility, and Ukrainian officials have accused them of trying to spoil the inspectors’ visit. Ukrainian President Volodymyr Zelensky, who welcomed the UN team Wednesday, warned that the plant was vulnerable to nuclear disaster as his forces seek to fend off the invading forces of Russian President Vladimir Putin.

Sarah Maine, Kev Lesswing, Melissa Rybko, Spencer Kimball, and CNBC’s Holly Eliat contributed to this report.

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