Dow drops 500 points on September’s final day, S&P 500 suffers worst month since March 2020
U.S. stocks pulled back on Thursday as Wall Street wrapped up its worst month of the year on a sour note.
The Dow Jones Industrial Average dropped 546.80 points, or 1.59%, to close at 33,843.92. The broader S&P 500 was down 1.19% to 4,307.54, while the tech-heavy Nasdaq Composite fell 0.4% to 14,448.58.
The weakness for the market came on the final day of what has been a rough month for equities, as rising rates, inflation fears and concerns about the Chinese property market have roiled stocks. The S&P 500 finished September down 4.8% for its worst month since March 2020, when the pandemic caused a major market sell-off. The index also closed 5% below its record high for the first time this year.
The Nasdaq fell 5.3% for its worst month since March 2020, while the Dow dropped 4.3% for its worst month in 2021.
Rising yields, fueled by concerns over inflation and the Federal Reserve’s signals that it will soon begin winding down its pandemic-era asset purchases, are seen as a negative for tech stocks because they make far-off future profits look less attractive to investors.
September’s losses led to a weak third quarter for the market. For the 3-month period, the Dow dropped 1.9%, while the Nasdaq Composite shed 0.4%. The S&P 500 held on to a modest gain and is still up nearly 15% on the year.
October has a reputation for some violent sell-offs but overall is typically the start of better seasonal performance for stocks. The S&P 500 averages a 0.8% gain for the month, according to the Stock Trader’s Almanac.
Investors were also keeping an eye on Washington as Congress passed a bill that would fund the government through early December. The bill would avert a government shutdown but Congress still has not raised the debt ceiling, which Treasury Secretary Janet Yellen says will be reached on Oct. 18.
Reference: CNBC
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