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The Dow and the S&P 500 recovered grounds on Wednesday after a major sell-off in the previous session and closed in the positive territory. However, the rise in the Treasury yields continued to put pressure on technology and other growth stocks, pushing the Nasdaq into the red.
The S&P 500 rose 6.83 points, or 0.2%, to close at 4,359.46 on Wednesday. Seven of the 11 major sectors of the broader index closed in the green, led by a 1.3% gain in the utilities sectors, while the energy sector closed unchanged. The Nasdaq Composite Index closed at 14,512.44, after declining 34.24 points, or 0.2%.
On Wednesday, the fear-gauge CBOE Volatility Index (VIX) decreased nearly 3%, to close at 22.56. Advancing issues outnumbered declining ones on the NYSE by a 1.26-to-1 ratio. A total of 11.42 billion shares were traded yesterday, higher than the last 20-session average of 10.45 billion.
Technology Sector Struggles as Treasury Yield Rise
On Wednesday, the U.S. Treasury yields upheld momentum, with the 10-year yield hitting a seventh straight day high since June, rising to 1.538%. Investors have been selling off technology and growth-related stocks that are interest-rate sensitive, as the Federal Reserve hinted plans to recede accommodative policy that was used to help the economy cope up with the pandemic.
Investors also kept a close watch on news from Washington where the Senate Republicans and Democrats have been stalemate over the debt ceiling needed to prevent a government shutdown. Congress needs to approve government funding by Oct 1 to avoid a shutdown and need to raise the debt limit by Oct 18, as per U.S. Treasury Secretary Janet Yellen. Additionally, the House also remains divided over the progress of Biden’s infrastructure bill passed earlier by the Senate, and the larger tax and social spending package.
Pending Home Sales Surge in August
On Wednesday, the National Association of Realtors reported that pending home sales increased 8.1% in August, outpacing the consensus estimate of 0.4% and a rebound from July’s upwardly revised 2% rise. Sales of existing single-family homes, condos, and co-ops across all the four major U.S. regions have witnessed month-over-month growth in contract activity.
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Stock Market News for Sep 30, 2021
The Dow and the S&P 500 recovered grounds on Wednesday after a major sell-off in the previous session and closed in the positive territory. However, the rise in the Treasury yields continued to put pressure on technology and other growth stocks, pushing the Nasdaq into the red.
How Did the Benchmarks Perform?
The Dow Jones Industrial Average (DJI) rose 90.73 points, or 0.3%, to close at 34,390.72, with The Boeing Company (BA - Free Report) leading, closing 3.2% higher. Boeing carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The S&P 500 rose 6.83 points, or 0.2%, to close at 4,359.46 on Wednesday. Seven of the 11 major sectors of the broader index closed in the green, led by a 1.3% gain in the utilities sectors, while the energy sector closed unchanged. The Nasdaq Composite Index closed at 14,512.44, after declining 34.24 points, or 0.2%.
On Wednesday, the fear-gauge CBOE Volatility Index (VIX) decreased nearly 3%, to close at 22.56. Advancing issues outnumbered declining ones on the NYSE by a 1.26-to-1 ratio. A total of 11.42 billion shares were traded yesterday, higher than the last 20-session average of 10.45 billion.
Technology Sector Struggles as Treasury Yield Rise
On Wednesday, the U.S. Treasury yields upheld momentum, with the 10-year yield hitting a seventh straight day high since June, rising to 1.538%. Investors have been selling off technology and growth-related stocks that are interest-rate sensitive, as the Federal Reserve hinted plans to recede accommodative policy that was used to help the economy cope up with the pandemic.
Investors also kept a close watch on news from Washington where the Senate Republicans and Democrats have been stalemate over the debt ceiling needed to prevent a government shutdown. Congress needs to approve government funding by Oct 1 to avoid a shutdown and need to raise the debt limit by Oct 18, as per U.S. Treasury Secretary Janet Yellen. Additionally, the House also remains divided over the progress of Biden’s infrastructure bill passed earlier by the Senate, and the larger tax and social spending package.
Pending Home Sales Surge in August
On Wednesday, the National Association of Realtors reported that pending home sales increased 8.1% in August, outpacing the consensus estimate of 0.4% and a rebound from July’s upwardly revised 2% rise. Sales of existing single-family homes, condos, and co-ops across all the four major U.S. regions have witnessed month-over-month growth in contract activity.