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* S&P 500 breaks seven-month winning streak
* S&P 500, Nasdaq see biggest monthly decline since March 2020
* Index down: Dow 1.59%, S&P 1.19%, Nasdaq 0.44% (update with closing price)
NEW YORK, Sept 30 (Businesshala) – Wall Street fell sharply lower on Thursday and the S&P 500 posted its worst month since the start of the global health crisis, a month and quarter after the COVID-19, Inflation fears and budget tussle in Washington
The US Senate and House approved a stopgap spending bill to keep the government running late in the session, but after a brief market rally, shares resumed their decline, even as the day Pulled the Nasdaq into the red for most of the year.
“The market has been resilient, but the risk in policy headlines around debt limits, the chaos surrounding these spending bills is impacting the market,” said investment strategy analyst Ross Mayfield. Baird in Louisville, Kentucky.
“In a larger context it has been very mild. We are coming on the heels of seven ‘up’ months and volatility is pretty muted despite headline risks, not to mention COVID-19 and tapering off,” Mayfield Said. “The market had to take a break, and a break is necessary and probably to be expected.”
All three major US stock indexes had their worst quarterly performance since the early months of 2020, when the COVID-19 pandemic brought the global economy to its knees.
The S&P posted marginal gains in the July-September period, while the Nasdaq and the Dow posted quarterly losses.
For the month, the S&P and Nasdaq suffered their biggest percentage declines since March 2020, while the Dow saw its biggest monthly percentage decline since October.
The tug-of-war between growth and price persisted throughout the month and into the quarter. The S&P Growth Index fell 5.8% in September, but posted a 1.7% gain in the quarter. The value declined by 3.5% in September and 1.4% in the July-September period.
“It’s no surprise because we’ve seen yields remain more stable, you’ve seen better price performance,” Mayfield said. “We expect yields to remain high through the end of the year and with that will be cyclical and price performance.”
On the economic front, initial jobless claims rose unexpectedly high for the third straight week. Market participants now look to consumer spending, inflation and factory activity data for signs of economic health and for clues about the US Federal Reserve reducing its asset purchases and raising key interest rates.
Fed Chair Jerome Powell, along with Treasury Secretary Janet Yellen, testified before the US House Committee on Financial Services, even as an imminent deadline for funding the government on Capitol Hill and a possible shutdown and credit default The altercation continued due to the threat of
The Dow Jones Industrial Average fell 546.8 points, or 1.59%, to 33,843.92, the S&P 500 fell 51.92 points, or 1.19%, to 4,307.54, and the Nasdaq Composite fell 63.86 points, or 0.44%, to 14,448.58.
All 11 key sectors of the S&P 500 ended the session in the red, with industry and consumer staples showing the biggest percentage declines.
reducing issues leading to a 1.74-to-1 ratio on the NYSE; On the Nasdaq, a 1.14-to-1 ratio favored the decline.
The S&P 500 posted four new 52-week highs and four new lows; The Nasdaq Composite posted 39 new highs and 150 new lows.
Volume on US exchanges stood at 12.88 billion shares, compared to an average of 10.61 billion over the past 20 trading days.