Stocks are marginally lower this morning as traders braced for the final week of a volatile September. The retreat is being led by tech stocks, and comes asTreasury yields pushed higher. The 10-year Treasury yield increased on economic optimism and inflation fears, briefly topping 1.5% on Monday. That’s the highest since June and up from 1.30% at the end of August.
The deadline in the debt ceiling showdown in Washington approaches, with a government shutdown possible on Friday, Oct. 1. Democrats have disagreements within their party as well over a $1.2T infrastructure bill and a $3.5T reconciliation bill. A temporary spending bill would need to pass Thursday night. Congress has raised the debt ceiling more than a dozen times in the last 20 years, with the last major face-off coming in 2011 between the GOP and the Obama administration.
Polestar, the Swedish high-end electric vehicle company, has signed a deal to go public at a $20 billion valuation, via a merger with a SPAC backed by the Gores Group and Guggenheim Capital. Polestar is owned by Volvo Cars and Volvo’s Chinese parent, Geely. Polestar has two models on the road, and it wants to launch three more by 2024. It delivered approximately 10,000 vehicles in 2020. Almost unbelievably, its valuation is conservative for an EV company.