5 Things to Know Before the Stock Market Opens Wednesday

Here are five key things investors need to know to kick off the trading day:

The already strained U.S.-China relationship is facing renewed pressure as President Trump considers imposing a cooking oil embargo on Beijing as retaliation for its continued refusal to purchase U.S. soybeans. This latest development threatens to further destabilize already volatile markets and add another layer of uncertainty to the global economic outlook.

Key takeaways:

• Trump, via a Truth Social post, labeled China’s soybean snub an “Economically Hostile Act,” hinting at a potential embargo on “all business with China…having to do with Cooking Oil.” The move appears aimed at leveraging U.S. agricultural exports to force concessions on broader trade issues.
• China, previously the largest importer of U.S. soybeans, has halted purchases since May, applying pressure in response to U.S. trade policies. This has created a glut of soybeans in the U.S., impacting farmers and agricultural commodity markets.
• The White House has amplified its criticism of China, floating the threat of a new 100% tariff, adding fuel to the fire after China tightened export restrictions on rare earth materials – critical components for various technology and manufacturing industries.
• U.S. Trade Representative Jamieson Greer indicated that the implementation of these higher tariffs hinges on China’s future actions. Treasury Secretary Scott Bessent accused China of attempting to “pull everybody else down with them,” suggesting a deepening distrust and potential for further retaliatory measures.
• Market reaction has been predictably turbulent, with stocks experiencing significant volatility as investors grapple with the evolving trade dynamic. The S&P 500 closed in negative territory following Trump’s statement, underscoring the market’s sensitivity to trade-related news.

Analysis: This potential cooking oil embargo represents a significant escalation in the trade war. While soybeans have been a primary target, extending the conflict to cooking oil introduces a new layer of complexity. China relies on cooking oil imports, and an embargo could trigger inflation within the country and force it to seek alternative suppliers, potentially reshaping global agricultural trade. Furthermore, the rare earth element restrictions imposed by China underscore the vulnerabilities in global supply chains, particularly for technology-dependent industries. The situation requires careful monitoring as both sides assess their options and the potential repercussions of further actions.

The government shutdown is now in its fifteenth day, with increasingly visible consequences across various sectors. While the Trump administration claims that layoffs target “Democrat Agencies,” the effects are clearly impacting bipartisan initiatives and essential services.

At the Treasury Department, a significant portion of the workforce has received reduction-in-force notices, including the entire staff of the Community Development Financial Institutions Fund, a program with bipartisan support aimed at supporting underserved communities.

The shutdown’s impact is also being felt at airports, where air traffic controllers are distributing leaflets urging the public to pressure Congress to reopen the government. Some airports are refusing to play a video from Homeland Security Secretary Kristi Noem, who blames Democrats for the shutdown, highlighting the growing tensions and public dissatisfaction.

Boeing is poised to achieve its highest annual plane delivery count since 2018, according to September’s figures. The company reported delivering 55 aircraft last month, bringing the year-to-date total to 440. This positive momentum signals a recovery after facing significant safety and production challenges.

Boeing executives are now focused on increasing the production rate of the 737 Max, which is a key driver of revenue and profitability. Stabilizing production processes and addressing concerns surrounding safety are crucial for sustaining this growth trajectory.

In addition, Boeing secured antitrust approval from European Union regulators for its $4.7 billion acquisition of Spirit AeroSystems. To address competition concerns, the company has agreed to divest some of Spirit’s operations. This acquisition is expected to strengthen Boeing’s supply chain and improve its manufacturing capabilities.

The Department of Justice (DOJ) has seized approximately $15 billion worth of Bitcoin from cryptocurrency wallets associated with Chen Zhi, who is accused of orchestrating a large-scale “pig butchering” fraud operation based in Cambodia. Chen Zhi, who remains at large, faces charges of wire fraud conspiracy and money laundering conspiracy.

This marks the largest forfeiture action ever pursued by the DOJ, underscoring the increasing focus on combating cryptocurrency-related crime. The operation highlights the sophistication of international fraud schemes and the challenges in tracking and recovering illicit digital assets. The implications for the cryptocurrency market and regulatory oversight are significant.

Recent survey results from JPMorgan reveal a stark contrast in how Americans across different income brackets perceive the current economic climate.