Inflation and the prospect of higher interest rates are prompting investors to dump government bonds and reposition their stock portfolios. The Fed meeting last week indicated a willingness to respond to growing inflationary pressures by lifting borrowing costs as soon as next year, as well as tapering bond buying as soon as November. Combined with surging prices for oil and other commodities, the rhetoric was enough to send bond yields flying, with the 10-year Treasury climbing 20 basis points over the last week alone.
Inflation and tapering aren't the only forces spooking investors. Debt ceiling drama is intensifying in Washington ahead of a Thursday night deadline, with the risk of a partial shutdown starting Friday morning. Nearly two weeks later, on Oct. 18, the government will run out of money to meet its obligations to debtholders, according to Treasury Secretary Janet Yellen.
Investors today will be eyeing the public debut of Warby Parker, which will hit the New York Stock Exchange via a direct listing (a cheaper, but less common way of going public). The company is known for its affordable eyeglasses that are sold online and through its network of 145 stores. Last night, the NYSE assigned a reference price of $40 to Warby's 111.5M outstanding shares, giving it a valuation of around $4.6B