FILE PHOTO: A Wall Street sign stands outside the New York Stock Exchange in New York on October 28, 2013. Reuters / Carlo Allegri
September 29, 2021
By Devik Jain and Amber Warrick
(Reuters) – Rising defense stocks and Boeing ground lost the Dow and S&P 500 indices on Wednesday, the worst sell-off on Wall Street this year due to inflation and rising Treasury yields. helped to recover.
Eight of the 11 key S&P sectors made progress, with health care, consumer-oriented foods, utilities and real estate growing between 0.7% and 1.6%.
Concerns over economic growth and the prospect of a government shutdown have left investors stuck in relatively stable territory.
Federal Reserve Chairman Jerome Powell also warned of medium-term economic uncertainty, warning that inflation is likely to rise this year.
The Dow Jones Industrial Average and the benchmark S&P 500 also rose, with Boeing’s share price rising 3.3%.
Boeing said last month that a successful 737 MAX test flight to China’s aviation regulators gave airplane makers hopes to lift the two-year grounding this year.
The Nasdaq lags behind its peers as major tech stocks like Alphabet Inc. and Facebook remain under pressure from relatively high Treasury yields. Yields may continue to rise this year as inflation is expected to rise.
Bob Shea, CEO of Trim Tabs Asset Management in New York, said:
“We will have short-term volatility on highly fragmented government laxity. After all, they are usually forced to do the right thing, but the oversight is usually for the market. This is an unpleasant and volatile period.”
Unless the Democratic Party passes a bill for a new fiscal year beginning Friday, the US Congress has only two days left before the federal government shuts down most of its activities.
JPMorgan Chase & Co CEO Jamie Dimon also warned that a US credit default would be a “potentially catastrophic” event.
The S&P 500 index is related to China’s Evergrande defaults, potentially diluting faster than expected due to higher corporate taxes and federal cloud investor sentiment, which typically results in a weak month in the season. , ready to break the 7 month streak.
At 12:27 p.m. (Eastern Standard Time), the Dow Jones Industrial Average was up 34,402.29, up 102.30 points (0.30%), the S&P 500 was up 4,359.53, 6.90 points (0.16%), and the Nasdaq Composite Index was up 37.51. digit (0.26). ) has fallen. %, 14,509.17.
Dollar Tree Inc., among other moves, rose 15% after discount stores increased their share buyback plans to a total of $2.5 billion.
On the NYSE, the going forward problem is outpacing the downside problem with a 1.42 to 1 ratio. On the Nasdaq, the number of issues exceeds advances in a ratio of 1.13:1.
The S&P index recorded three new 52-week highs and two new lows, while the Nasdaq recorded 21 new highs and 108 new lows.
(Reporting by Devik Jain in Bangalore, Edited by Soumya Deb Chakraborty and Maju Samuel)