Stocks Finish Mixed, Energy Rallies, Nasdaq Composite Drops
Monday, 27 September 2021 -
Cyclical stocks end higher while stocks of technology slip, leaving major U.S. indexes in a mixed performance.
Dow Jones: +0.2% or -71.37 points, to 3,4869
S&P 500: -0.3% or -12.37 points, to 4443.11
Nasdaq Composite: -0.5% or -77.73 points, to 14969.97
Treasury yields and bank stocks up. The benchmark 10-year U.S. Treasury briefly topped 1.5% for the first time since June.
Why the rise in yields? Several factors:
Optimism about the economic outlook
The potential for tighter monetary policy
Solid consumer demand
Cyclical stocks, including:
Casinos and retailers
Tech and other growth stocks. Some investors note that cyclical stocks rally despite rising interests rate, is a proof that the economy is on a path to sustainable growth.
European stock markets, except Stoxx 600, closed with gains on Monday after preliminary official results of Germany's general elections were revealed.
Social Democratic Party (SPD) won the most parliamentary seats in national elections, while Angela Merkel’s conservative CDU/CSU bloc came in second, according to preliminary results.
Germans voted Sunday in a very tight election to elect a new parliament and determine who will succeed Merkel as the country’s next chancellor.
The STOXX Europe 600, which includes around 90% of the market capitalization of the European market in 17 countries, was marginally down by 0.87, or 0.19%, closing at 462.4.
London's FTSE 100 gained 12 points, or 0.17%, to 7,063, while Germany's DAX 30 added 42 points, or 0.27%, to 15,574.
France's CAC 40 was up 12.5 points, or 0.19%, to end the day at 6,651 points. Italy's Borsa Italiana FTSE MIB 30 climbed 163.4 points, or 0.63%, to close at 26,132.
Spain's IBEX 35 was the best performer of the day after soaring 1.46%, or 130 points, to 9,003.
In Asia, major benchmarks were mixed Monday.
The Shanghai Composite Index slipped 0.8%,
Hong Kong’s Hang Seng Index edged up less than 0.1%.
(Written and edited by: The Decision Maker)