Wednesday, 29 September 2021 -
A potential government shutdown and continuous concerns about recovery cause US stocks losing an upward momentum. Nasdaq down.
The S&P 500 rose 0.2%
Dow Jones up 0.3%, or 90 points
Nasdaq was down 0.2%
Gainers
Consumer staples and utilities
Sempra Energy, Tyson Foods, Conagra Brands and Nextera Energy drove the market up.
While word on Wall Street suggests that higher rates are still far from causing damage to equities, the 10-year Treasury trades above 1.5%.
Goldman Sachs (NYSE:GS) stated on the case: "Without any change to the P/E, the 10-year UST yield would need to rise above 2.3% for relative equity valuations to rank above the long-term average.
Tech sector continues to struggle, while Energy stocks were flat and oil prices lost balance on data that shows weekly U.S. crude supplies surprisingly rose.
According to the Energy Information Administration, crude stockpiles rose by 4.58 million barrels in the week to September 24 beating the forecasts for a drop of 2.2 million.
President Biden will be called to sign avoiding a government shutdown on Friday, as a vote on a funding bill will be taken by Senators on the Capitol Hill on either Wednesday or Friday, which, before reaching President’s Biden office, will be passed on to the House of Representatives.
Pending home sales advanced 8.1% from a month earlier in August, rebounding from two months of declines.
(Written and edited by: The Decision Maker)