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U.S. stocks ended sharply lower on Tuesday after giving up early gains as economic uncertainties dented investor confidence despite data showing signs of easing inflation. All the three major indexes ended in negative territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) shed 0.8% or 292.06 points to end at 34,577.77 points.
The S&P 500 dropped 0.6% or 25.68 points to close at 4,443.05 points. Energy and financial stocks were the worst performers.
The Energy Select Sector SPDR (XLE) declined 1.4%, while the Financials Select Sector SPDR (XLF) shed 1.3%. All the 11 sectors of the benchmark index closed in negative territory.
The tech-heavy Nasdaq declined 0.5% or 67.82 points to end at 15,037.76 points, recording its fifth straight session of losses.
The fear-gauge CBOE Volatility Index (VIX) was up 0.46% to 19.46. A total of 10.07 billion shares were traded on Tuesday, higher than the last 20-session average of 9.38 billion. Decliners outnumbered advancers on the NYSE by a 2.25-to-1 ratio. On Nasdaq, a 2.40-to-1 ratio favored declining issues.
Investors Worry about Economic Recovery
Stocks once again took a hit on Tuesday after bouncing back from last week’s lows on Monday, as investors’ confidence continued to be low. Stocks initially moved higher following the U.S. government report that showed rise in cost of living slowed in August.
While data still showed a jump in inflation, the reading came in less than expected. This sent stocks on a rally but investors could not hold on to the momentum as economic uncertainties continued to dent their confidence.
This saw stock averages turning lower within an hour into trading. Shares related to the economic reopening suffered the most, with all the three indexes turning red.
Investors are now looking forward to Fed’s two-day policy meeting next week to get a clearer picture about its plans of tapering its monthly asset purchases. The Fed is also closely monitoring key economic metrics like inflation data before it takes a call on when to taper its easy monetary policy.
Economic Data
The consumer-price index (CPI) increased 0.3% in August against expectations of a 0.4% rise. The core CPI, which excludes volatile food and energy prices, rose a meager 0.1%. On a year-over-year basis, CPI rose 5.3% compared to jump of 5.5% in July. Moreover, the year-over-year change in core CPI declined to 4% from July’s jump of 4.3%.
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Stock Market News for Sep 15, 2021
U.S. stocks ended sharply lower on Tuesday after giving up early gains as economic uncertainties dented investor confidence despite data showing signs of easing inflation. All the three major indexes ended in negative territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) shed 0.8% or 292.06 points to end at 34,577.77 points.
The S&P 500 dropped 0.6% or 25.68 points to close at 4,443.05 points. Energy and financial stocks were the worst performers.
The Energy Select Sector SPDR (XLE) declined 1.4%, while the Financials Select Sector SPDR (XLF) shed 1.3%. All the 11 sectors of the benchmark index closed in negative territory.
Shares of Bank of America Corporation (BAC - Free Report) declined 2.7%. Bank of America carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
The tech-heavy Nasdaq declined 0.5% or 67.82 points to end at 15,037.76 points, recording its fifth straight session of losses.
The fear-gauge CBOE Volatility Index (VIX) was up 0.46% to 19.46. A total of 10.07 billion shares were traded on Tuesday, higher than the last 20-session average of 9.38 billion. Decliners outnumbered advancers on the NYSE by a 2.25-to-1 ratio. On Nasdaq, a 2.40-to-1 ratio favored declining issues.
Investors Worry about Economic Recovery
Stocks once again took a hit on Tuesday after bouncing back from last week’s lows on Monday, as investors’ confidence continued to be low. Stocks initially moved higher following the U.S. government report that showed rise in cost of living slowed in August.
While data still showed a jump in inflation, the reading came in less than expected. This sent stocks on a rally but investors could not hold on to the momentum as economic uncertainties continued to dent their confidence.
This saw stock averages turning lower within an hour into trading. Shares related to the economic reopening suffered the most, with all the three indexes turning red.
Investors are now looking forward to Fed’s two-day policy meeting next week to get a clearer picture about its plans of tapering its monthly asset purchases. The Fed is also closely monitoring key economic metrics like inflation data before it takes a call on when to taper its easy monetary policy.
Economic Data
The consumer-price index (CPI) increased 0.3% in August against expectations of a 0.4% rise. The core CPI, which excludes volatile food and energy prices, rose a meager 0.1%. On a year-over-year basis, CPI rose 5.3% compared to jump of 5.5% in July. Moreover, the year-over-year change in core CPI declined to 4% from July’s jump of 4.3%.