Here are the most important news items that investors need to start their trading day:
1. Investors look for October rebound
Investors are hoping this month ends up better than the last one. The first trading week of October starts after U.S. equities saw their worst month of the year in September. The Dow Jones Industrial Average fell 3.5% for the month, while the S&P 500 and the Nasdaq Composite dropped 4.9% and 5.8%, respectively. Markets avoided one potential negative as Congress prevented a government shutdown over the weekend. Multiple labor market data points are due this week, including the September jobs report on Friday. Follow live market updates here.
2. Congress dodges a shutdown
Lawmakers avoided a shutdown with little time to spare before funding would have lapsed Sunday, which would have jeopardized a range of federal jobs, benefits and services, and dragged on the economy. The spending measure will keep the government running for 45 days. After he signed the bill, President Joe Biden said Congress has "plenty of time" to pass funding legislation before another shutdown looms. But pitfalls await. Lawmakers this weekend did not resolve disputes over additional defense funding for Ukraine or drastic budget cuts sought by hardline conservatives. House Speaker Kevin McCarthy, R-Calif., also faces threats to his leadership from the right flank of his caucus.
3. Student loan payments resume
The start of the month means as many as 40 million Americans now owe federal student loan payments for the first time since 2020. Typical borrowers will owe hundreds of dollars a month — by one estimate, adding up to $7 billion to $8 billion reallocated to the payments every month. While the long-term effect on the economy is unclear, households around the country will feel the crunch from payments restarting. Many borrowers plan to delay purchases of big-ticket or discretionary items, which could take a bite out of sales at retailers like Macy's, whose CEO mentioned the resumption of payments as a risk in August.
4. Apple plans fix for overheating phones
Apple will roll out a software update to fix an issue that has caused its new iPhone 15 models to overheat. In a statement, the company told CNBC it "identified a few conditions which can cause iPhone to run warmer than expected." Higher background activity after phone setup, a bug in the iOS 17 software and updates to third-party apps have all contributed to the problem, Apple said. The company said it is "in the process of rolling out" fixes to the issues.
5. California's next senator
California Gov. Gavin Newsom has chosen Laphonza Butler to fill the Senate seat of Dianne Feinstein, who died Friday at age 90 after the longest tenure of any California senator. Butler, who will become the third Black woman to serve in the Senate, currently leads EMILY's List, an organization that works to elect Democratic women to Congress. Butler will represent a state that on its own boasts one of the largest economies in the world. The former head of SEIU Local 15, California's largest union, will join Congress at a time when Hollywood has joined in a wave of several high-profile strikes.
– CNBC's Alex Harring, Kevin Breuninger, Amanda Macias, Rebecca Picciotto, Annie Nova, Kif Leswing and NBC News contributed to this report.
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