Stocks Mourn Worst Day Since March
Date
9/26/2023 7:19:17 PM
(MENAFN- Baystreet.ca) Stocks Mourn Worst Day Since March
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The Dow Jones Industrial Average fell Tuesday after the latest home sales and consumer confidence reports stoked concern over the state of the U.S. economy.
The blue-chip withered 388 points, or 1.1%, to conclude Tuesday at 33,618.88, in its worst day since March. The 30-stock index closed below its 200-day moving average for the first time since May.
The S&P 500 index faltered 63.91 points, or 1.5%, to 4,273.53.
The nasdaq index slipped 207.71 points, or 1.6%, to 13,063.61.
Amazon shares fell 4% - the most of the mega-cap tech stocks - after the Federal Trade Commission filed an antitrust lawsuit, saying the online retailer keeps prices artificially high and hurts rivals.
JPMorgan Chase CEO Jamie Dimon warned interest rates may need to rise further to tamp down inflation, comments that added to bearish sentiment Tuesday. Bank stocks declined, with Wells Fargo shares dropped about 2%, while Morgan Stanley fell 1%.
Those moves would add to the market's losses for the month. The NASDAQ Composite is down more than 6% in September, while the S&P 500 was off more than 5% and Dow lost more than 3%.
August new home sales missed expectations. Homes under contract totaled 675,000 for the month, down 8.7% from July, according to the Commerce Department. Economists polled by Dow Jones anticipated a total of 695,000, which would have represented a 2.7% fall from unrevised July totals.
The Conference Board's consumer confidence index fell to 103 in September, down from 108.7 in August. Economists were anticipating 105.5, according to consensus estimates from Dow Jones. The expectations index tumbled to 73.7, below the level that observers associate with recessions.
Investors this week are also grappling with negotiations in Washington, as lawmakers hope to avert a government shutdown that could take place as early as Oct. 1 if Congress doesn't agree on a spending bill.
Still, upcoming seasonal market tumult could present a window for investors. Though October is known as the“jinx month” because of the 1929 and 1987 crashes, it also has a reputation as a“bear killer,” according to the“Stock Trader's Almanac.”
Prices for the 10-year Treasury fell back, raising yields to 4.55% from Monday's 4.54%. Treasury prices and yields move in opposite directions.
Oil prices gained 93 cents to $90.59 U.S. a barrel.
Gold prices cratered 18 dollars to $1,918.60.
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