5 things to know before the stock market opens Wednesday, June 21

Here are the most important news items that investors need to start their trading day:

1. After the rally, a rut

Last week’s rally is but a memory at this point. Stocks fell Tuesday after closing out last week’s otherwise positive frame with a Friday dud. Investors haven’t had much to work with since the data deluge last week that accompanied the Federal Reserve’s decision to hold rates steady after more than a year of hikes. On Wednesday, however, they should get more material as Fed Chairman Jerome Powell heads to Capitol Hill to testify in front of the House Financial Services Committee. That’s scheduled to begin at 10 am ET. Follow live market updates.

2. Modi in America

Indian Prime Minister Narendra Modi waves to supporters as he arrives at the Lotte New York Palace hotel in New York City, June 20, 2023.

Mike Segar | Reuters

Indian Prime Minister Narendra Modi is visiting the United States this week, meeting with a variety of officials and executives. On Tuesday, he met with Tesla CEO Elon Musk in New York. He will head to Washginton later, as he is set to be honored with a state dinner Thursday at the White House. There he’ll be joined by industry leaders such as Apple CEO Tim Cook, Google CEO Sundar Pichai, Microsoft CEO Satya Nadella and FedEx CEO Raj Subramaniam. There are plans in the works to have Modi meet with tech leaders Friday, as well, CNBC’s Seema Mody reported. Modi’s trip to the U.S. comes at a pivotal time. India has apparently passed China as the world’s most populous nation, while the Chinese economy is stagnating and U.S. companies look to gain a foothold with Modi’s government.

3. Biden labels Xi a dictator

U.S. President Joe Biden meets Chinese President Xi Jinping on the sidelines of the G-20 leaders’ summit in Bali, Indonesia, on Nov. 14, 2022.

Kevin Lamarque | Reuters

President Joe Biden called his Chinese counterpart, Xi Jinping, a dictator, triggering an angry response from China. Biden made the remark at a campaign fundraiser in California, as he sought to rally support for his 2024 reelection bid. But, political red meat aside, he made the comment at a diplomatically sensitive time as the U.S. and China look to ease economic and geopolitical tensions between the countries. Secretary of State Antony Blinken had just wrapped what was seen as a productive visit to China, where he met with Xi, who has in recent months consolidated even more power in his office. A spokesperson for China’s Ministry for Foreign Affairs called Biden’s remark “ridiculously absurd and irresponsible.” (CNBC’s new documentary, “China’s Corporate Spy War,” premieres at 10 p.m. ET on Wednesday. Check out a sneak peek.)

4. The next wave in the ESG fight

Rep. Andy Barr, R-Ky., speaks during a signing ceremony for a resolution that disapproves of a rule related to the “Prudence and Loyalty in Selecting Plan Investments and Exercising Shareholder Rights, in the U.S. Capitol on Thursday, March 9, 2023.

Tom Williams | CQ-Roll Call, Inc. | Getty Images

House Republicans are gearing up for their next offensive against environmental, social and governance issues in investing. Rep. Andy Barr, R-Ky., is set to unveil a new bill intended to limit investing in ESG funds, which opponents have dubbed “woke.” ESG defenders say the strategy allows people to make money while investing in the social good. But Republicans and conservative Democrats say investment funds should only focus on maximizing returns for people. “Environmental, social and governance investing has become a cancer and a fraud within our capital markets, steering retail investors, sometimes unwittingly, into lower-performing, less diversified and higher-fee funds,” Barr told CNBC’s Emily Wilkins. The lawmaker’s bill could be part of a larger House GOP to target ESG investing next month.