These are the stocks posting the largest moves before the bell.Market Insiderread more
U.S. stock futures pointed to a higher open on Monday as Treasury yields rebounded to quell fears of a possible recession.US Marketsread more
The Business Roundtable, a group of CEOs of nearly 200 major U.S. corporations, gave a new definition of the "purpose of a corporation."Marketsread more
Trump said he doesn't see a recession after the bond market spooked investors and the Dow suffered its worst day of the year last week.Marketsread more
Bianco Research's James Bianco suggests Wall Street is desperately looking for a signal that a 50 basis point cut is coming next month.Trading Nationread more
U.S. Commerce Secretary Wilbur Ross said the U.S. will extend a reprieve given to Huawei that permits the Chinese firm to buy supplies from U.S. companies.Politicsread more
Dow to jump; Trump defends economy; Huawei hopes for US reprieve; Trump and Apple's Tim Cook meet; president ties Hong Kong protests to China trade disputeMarketsread more
The U.K. prime minister prepares to meet his German and French counterparts this week.Europe Politicsread more
Amazon is raising seller fees for thousands of small and medium-sized businesses in France because of a new digital tax passed by the French government.Technologyread more
Ahead of the deadline, U.S. President Donald Trump told reporters that Huawei was a national security threat.Technologyread more
Target is launching its biggest brand yet, Good & Gather. Target expects the grocery label will be a multibillion-dollar brand by the end of 2020.Retailread more
Even if the U.S. government fails to raise the debt ceiling in a timely manner and defaults on its debt, Treasury yields are unlikely to rise much, Capital Economics said.
"We would expect U.S. Treasury yields to jump following any default, with the 10-year swiftly topping 3 percent, but not to soar above 4 percent," Jessica Hinds and Julian Jessop, economists at Capital Economics, said in a note.
The 10-year Treasury yield is currently at 2.683 percent, up slightly from 2.65 percent on October 1, when the U.S. government shutdown began, according to Reuters data. Credit default swaps insuring against a sovereign default of 10-year U.S. bonds have spiked by more than 50 percent since late September.
Any default is likely to be temporary, the Capital Economics analysts noted. "Market participants would probably continue to draw some distinction between Treasury securities where payments are falling due shortly and those whose servicing is unlikely to be affected by a short-lived default," the note said.
Shorter-term Treasury bills have reacted much more sharply to the government impasse, with yields rising to 0.3220 percent from around 0.0837 percent on October 1, according to Reuters data.
They also expect reassuring moves by rating agencies and regulators and a possible change in tone from major foreign holders of U.S. debt, such as China, could limit bond price declines. U.S. yields should also be capped by an extended period of near-zero interest rates and purchases by the Federal Reserve, they said.
Not everyone is sanguine on the possible market reaction to a default.
"It's more complicated than saying people would get their money back eventually," said Geoffrey Lunt, senior product specialist for fixed income at HSBC. "If it was a company, you would be very concerned indeed, even if you think they will eventually pay," he noted.
"There are institutions and individuals who rely on those coupons being paid. I appreciate there are contingencies," on prioritizing certain payments, he said. "But I'm not sure just saying, well, you'll get your money back eventually, is the same as saying there's no issue at all."
(Read more: Debt default damage already unfolding)
In a recent note, Nomura said it also didn't believe the market would take a default, however temporary, in its stride. "The consequences of this scenario would most likely be extreme and just the sheer fact of getting closer to it may have serious market implications, even if the risk seems remote," it said, although it noted it believes this scenario is unlikely.
"If we approach the point where the debt limit becomes binding without a clear path to raising it, money markets could be disrupted as institutions hoard cash to cover event risk and in general markets as investors reposition portfolios toward safe assets causing an imminent inflection point in risk markets," Nomura said. "A U.S. default on interest and principal would limit the infusion of cash flows into the market, potentially triggering contagion," it said.
"A drawn out delay of payments could echo a 'Lehman-like' event in the sense that money markets would be so extremely affected."
(Read more: How a US debt default could hit your finances)
To be sure, Capital Economics does have some caveats to its view. It doesn't expect a default to spur significant, paradoxical, safe-haven demand for Treasurys. While the 2011 budget standoff resulted in safe-haven Treasury demand, the euro zone was still in crisis then, it noted. "Many investors could, and surely would, turn to alternative safe havens."
In addition, "having defaulted once, the U.S. government might find it had to pay a higher yield on its debt than otherwise for the foreseeable future," the note said.
—CNBC.Com's Leslie Shaffer; Follow her on Twitter