Thursday, 30 September 2021 –
Last day of the month at Wall Street. September was hit by supply chain and inflation, with Dow Jones and Nasdaq suffering their worst month so far in 2021.
Stocks drop on Thursday in the final session of September and the third quarter, with stocks extending a weeks-long streak of volatility as concerns over inflation, the economic backdrop and debates in Washington over a host of measures weighed on equities.
The S&P 500 slumped Thursday to snap a seven-month win streak as progress by lawmakers to avoid a government shutdown failed to stoke investor appetite to buy the dip.
The S&P 500 fell 1.2%
The Dow Jones fell 1.6%, or 547 points
The Nasdaq was down 0.44%.
In the case of the S&P the index fell by more than 4.5% in September for its first monthly decline since January. Main reasons for this performance is, scepticism about:
Fiscal and monetary policy
Inflation
Regulations in China
The ongoing pandemic
Still though, the S&P 500 remained up by about 15% for the year-to-date through Thursday's close.
Cyclical stocks, down during Thursday's session, led the way higher in September as investors bet on higher inflation and rising rates. A jump in crude oil prices helped make the energy sector by far the best performer in the S&P 500.
Financial stocks also outperformed, with rising Treasury yields serving as a tailwind to bank profitability.
A short-term appropriations bill that would allow the government running through December 3rd, was passed by the Senate and House of Representatives on Thursday.
Economic data shows a third-weekly rise in jobless claims. Fears of a slowing recovery in the job market.
Jobless claims rose to 362,000, up by 11,000, contradicting economists’ expectations for a fall to 330,000, in the week ended September 25.
On the broader market, investor sentiment is still challenged as tech lost its intraday gains.
Apple, Microsoft, Amazon.com, Facebook, and Alphabet, the so-called Fab 5, which make up for about 25% of the S&P 500, were lower.
(Written and edited by: The Decision Maker)