Wall Street sets course for monthly losses, worst quarter since COVID outbreak

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NEW YORK (Businesshala) – Wall Street oscillated on Thursday, as investors spent the last day of a quarter filled with concerns over the Delta COVID version and inflationary fears, in Washington to fund the government and halt the shutdown. In view of the ongoing efforts for

FILE PHOTO: A Wall St. Street sign is seen near the New York Stock Exchange (NYSE) in New York City, US, September 17, 2019. Businesshala/Brendan McDermid/File photo

The S&P 500 and the Dow were in negative territory, with the blue-chip Dow down about 1%, while the tech-laden Nasdaq was higher that day.

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By mid-afternoon there was damage on the news that the Senate approved a stopgap spending bill to keep the US government running.

All three major US stock indexes are on track to show 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 and Nasdaq are set to show modest gains in the July to September period, while the Dow is headed for a modest quarterly loss.

For the month, all three indexes are on course to post their worst quarterly losses since the September-October period last year, which has historically been the weakest and most volatile time of the year for the stock market.

The tug-of-war between growth and price persisted throughout the month and into the quarter. The S&P Growth Index fell nearly 5% in September, yet is on course to post a quarterly profit of more than 2%, while the value has dropped about 3% this month, but for the July-to-September period is almost 1% is down.

“There has certainly been a sea change this month in particular, because there have been some incidents,” said Tim Griskey, chief investment strategist at Inverness Council in New York.

“The rise in interest rates has caused a rotation of growth stocks, linked to an increase in inflation expectations, and in fact the Fed raised their near-term expectations for inflation at their last meeting,” Griskey said. of it.”

More precisely, at the sector level, the FAANG group of momentum stocks is set to show a monthly decline of nearly 4% and a quarterly decline of more than 3%.

Additionally, the transportation stock, widely viewed as a barometer of economic health, is on track to post a monthly loss of more than 3% and a quarterly decline of nearly 5%.

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 credit limit issue has had a negative impact on stock prices,” Grisky said. “In the short term, politics affects traders and those looking for an edge.”

The Dow Jones Industrial Average fell 320.19 points, or 0.93%, to 34,070.53, the S&P 500 fell 16.26 points, or 0.37%, to 4,343.2 and the Nasdaq Composite rose 57.74 points, or 0.4%, to 14,570.18.

Among key sectors in the S&P 500, communications services were gaining the highest percentage, while consumer staples were at the bottom.

A decline in issues leading to a 1.56-to-1 ratio on the NYSE; On the Nasdaq, a 1.17-to-1 ratio favored advances.

The S&P 500 posted four new 52-week highs and two new lows; The Nasdaq Composite posted 35 new highs and 137 new lows.

Reporting by Stephen Culp; Additional reporting by Devik Jain in Bengaluru; Editing by Lisa Shumaker

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