Finance

S&P 500 down more than 2% as growth worries rise

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Folks sporting face masks stroll by the New York Inventory Trade (NYSE) throughout the outbreak of the coronavirus illness (COVID-19) in New York Metropolis, New York, U.S., July 19, 2021. REUTERS/Andrew Kelly

  • All eyes on Fed’s coverage assembly later this week
  • Main airways combined as U.S. relaxes journey guidelines
  • Indexes down: Dow 2.6%, S&P 500 2.7%, Nasdaq 3.2%

Sept 20 (Reuters) – U.S. shares fell on Monday, with the Nasdaq down greater than 3%, as worries mounted over the tempo of financial progress and a doable spillover from China Evergrande’s troubles.

Buyers have been additionally nervous forward of the Federal Reserve’s coverage assembly this week.

Microsoft Corp , Google-owner Alphabet Inc , Amazon.com Inc , Apple Inc , Fb Inc and Tesla Inc have been among the many largest drags on the S&P 500.

However all the 11 main S&P 500 sectors have been decrease, with economically delicate teams like vitality down probably the most.

The banking sub-index shed greater than 4%, monitoring U.S. Treasury yields as worries in regards to the default of Evergrande appeared to have an effect on the broader market.

The S&P 500 is down about 4.8% from its intra-day file excessive hit on Sept. 2 and is on monitor to snap a seven-month profitable streak.

“Right now, the market is down due to the Chinese language actual property contagion menace, regardless of loads of good headlines lately on COVID,” mentioned Jake Dollarhide, CEO of Longbow Asset Administration in Tulsa, Oklahoma.

“We’re due for a correction,” he mentioned. “It is just like the market is addicted to purchasing the dip. Each time it goes down 5% or 6%, all this liquidity jumps in to prop us again up.”

Wednesday will deliver the outcomes of the Fed’s coverage assembly, the place the central financial institution is anticipated to put the groundwork for a tapering, though the consensus is for an precise announcement to be delayed till the November or December conferences.

The Dow Jones Industrial Common fell 900.25 factors, or 2.6%, to 33,684.63, the S&P 500 misplaced 117.85 factors, or 2.66%, to 4,315.14 and the Nasdaq Composite dropped 477.75 factors, or 3.18%, to 14,566.22.

As of Monday afternoon, simply over half of the shares within the S&P 500 have been down 10% or extra from their 52-week highs, together with 93 shares down greater than 20%, in accordance with Refinitiv knowledge.

Strategists at Morgan Stanley mentioned they anticipated a ten% correction within the S&P 500 because the Fed begins to unwind its financial assist, including that indicators of stalling financial progress might deepen it to twenty%.

The CBOE volatility index , generally known as Wall Avenue’s concern gauge, hit its highest stage in over 4 months.

Most airline carriers have been down simply barely after the US introduced it’ll chill out journey restrictions in November on passengers from China, India, Britain and lots of different European international locations who’ve acquired COVID-19 vaccines.

Declining points outnumbered advancing ones on the NYSE by a 8.68-to-1 ratio; on Nasdaq, a 6.04-to-1 ratio favored decliners.

The S&P 500 posted no new 52-week highs and three new lows; the Nasdaq Composite recorded 20 new highs and 178 new lows.

Reporting by Caroline Valetkevitch in New York and Devik Jain and Sagarika Jaisinghani in Bengaluru; extra reporting by Noel Randewich in San Francisco; Modifying by Sriraj Kalluvila and Lisa Shumaker

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