5 things to know before the markets open

The United States is seeking to restrict Chinese companies’ access to American cloud services and the minutes of the Federal Reserve’s latest meeting could provide clues as to how it will handle upcoming rate hike decisions. Here’s what investors need to know today.

1. US Seeks to Restrict Chinese Access to Cloud Computing

The Biden administration is reportedly preparing to propose new rules limiting Chinese companies’ access to U.S. cloud services, a move that would require companies like Amazon (AMZN) and Microsoft (MSFT) to seek government clearance before proceeding. provide cloud computing that uses artificial intelligence (AI). The proposal comes after China said this week it would impose export restrictions on metals used in chipmaking. Microsoft shares traded down 0.8% in premarket trading, while Amazon shares fell 0.5%.

2. Fed meeting minutes could provide insight into rate hike pause

Investors will get a glimpse of the Federal Open Market Committee’s discussions of its decision to suspend interest rate hikes when at 2 p.m. ET the Federal Reserve releases the minutes of its June meeting. The minutes may provide additional insight into how the Fed will act on interest rates at its next meeting on July 26. Also today, factory orders data will be released at 10 a.m. ET.

3. Meta-platforms will launch rival “threads” on Twitter this week

Facebook’s parent company Meta Platforms (META) is expected to unveil a Twitter rival called “Threads” on Thursday, launched under the umbrella of its photo social media site Instagram. The launch follows new Twitter rules that limit the number of posts a user can see, part of changes that have baffled advertisers and led to a 40% drop in ad revenue. Shares of Meta Platforms traded down 0.4% in premarket trading.

4. Rivian shares rise after reporting better-than-expected production

Shares of Rivian Automotive (RIVN) rose after reporting vehicle production above estimates, producing 13,992 vehicles in the quarter ending June 30, better than the 12,562 vehicles analysts had expected. The results come after rival Tesla (TSLA) also said it exceeded estimates for second-quarter deliveries. Rivian shares rose more than 3% in premarket trading, while Tesla shares fell 0.7%.

5. Teamsters union says UPS has “walked away” from labor negotiations

The Teamsters union said United Parcel Service (UPS) had “withdrawn” from negotiations over a new contract, citing the possibility that its 340,000 workers at the parcel delivery company could go on strike. The Teamsters union said UPS’s latest offer in negotiations was unanimously rejected by the bargaining committee, ahead of the July 31 contract expiry date. UPS shares fell 1.5% in premarket trading.