Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Wall Street closes rollercoaster week sharply lower

Stock MarketsSep 17, 2021 06:25PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: A street sign for Wall Street is seen outside of the New York Stock Exchange (NYSE) in New York City, New York, U.S., June 28, 2021. REUTERS/Andrew Kelly/File Photo

By Stephen Culp

NEW YORK (Reuters) - U.S. stocks ended sharply lower in a broad sell-off on Friday, ending a week buffeted by strong economic data, corporate tax hike worries, the Delta COVID variant, and possible shifts in the U.S. Federal Reserve's timeline for tapering asset purchases.

All three major U.S. stock indexes lost ground, with the Nasdaq Composite Index's weighed down as rising U.S. Treasury yields pressured market-leading growth stocks.

They also posted weekly losses, with the S&P index suffering its biggest two-week drop since February.

"The market is struggling with prospects for tighter fiscal policy due to tax increases, and tighter monetary policy due to Fed tapering," said David Carter, chief investment officer at Lenox Wealth Advisors in New York.

"Equity markets are also a little softer due to today's weak Consumer Sentiment data," Carter added. "It's triggering concerns that the Delta variant could slow economic growth."

A potential hike in corporate taxes could eat into earnings also weigh on markets, with leading Democrats seeking to raise the top tax rate on corporations to 26.5% from the current 21%.

While consumer sentiment steadied this month it remains depressed, according to a University of Michigan report, as Americans postpone purchases while inflation remains high.

Inflation is likely to be a major issue next week, when the Federal Open Markets Committee holds its two-day monetary policy meeting. Market participants will be watching closely for changes in nuance which could signal a shift in the Fed's tapering timeline.

"It has been a week of mixed economic data and we are focused clearly on what will come out of the Fed meeting next week," said Bill Northey, senior investment director at U.S. Bank Wealth Management in Helena, Montana.

The Dow Jones Industrial Average fell 166.44 points, or 0.48%, to 34,584.88; the S&P 500 lost 40.76 points, or 0.91%, at 4,432.99; and the Nasdaq Composite dropped 137.96 points, or 0.91%, to 15,043.97.

The S&P 500 ended below its 50-day moving average, which in recent history has proven a rather sturdy support level.

(For graphic on S&P 500 flirts with 50-day moving average - https://fingfx.thomsonreuters.com/gfx/mkt/mopankqmbva/Pasted%20image%201631892826338.png)

Of the 11 major sectors in the S&P 500, all but healthcare ended in the red, with materials and utilities suffering the biggest percentage drops.

COVID vaccine manufacturers Pfizer Inc (NYSE:PFE) and Moderna (NASDAQ:MRNA) Inc dropped 1.3% and 2.4%, respectively, as U.S. health officials moved the debate over booster doses to a panel of independent experts.

U.S. Steel Corp shed 8.0% after it unveiled a $3 billion mini-mill investment plan.

Robinhood Markets Inc (NASDAQ:HOOD) rose 1.0% after Cathie Wood's ARK Invest bought $14.7 million worth of shares in the trading platform.

Volume and volatility spiked toward the end of the session due to "triple witching," which is the quarterly, simultaneous expiration of stock options, stock index futures, and stock index options contracts.

Volume on U.S. exchanges was 15.51 billion shares, compared with the 9.70 billion average over the last 20 trading days.

Declining issues outnumbered advancing ones on the NYSE by a 1.97-to-1 ratio; on Nasdaq, a 1.00-to-1 ratio favored advancers.

The S&P 500 posted seven new 52-week highs and two new lows; the Nasdaq Composite recorded 67 new highs and 82 new lows.

Wall Street closes rollercoaster week sharply lower
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (10)
jason xx
jason xx Sep 18, 2021 3:20PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Get ready for Taper. Fed will announce at meeting now that the spotlight is on thier double dipping. Powell owning 2.5 million dollars worth of the exact same bonds the FED is buying. Can't make this stuff up...
Semih Unalan
Semih Unalan Sep 17, 2021 4:48PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Fake fall to shake off poor bears
Todd Gray
Todd Gray Sep 17, 2021 2:35PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Bidens pushing booster shots, whenIsraeli scientists just proved conclusively that natural immunity is 13x more effective than vaccines. Israeli leaders listen to honest science. Liberals smear honest science.
Mike Wellons
Mike Wellons Sep 17, 2021 2:35PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
4 million people that tried the natural immunity route, died. Get your head out of the sand and pay attention.
jason xx
jason xx Sep 17, 2021 2:35PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Mike Wellons lol hilarious and much more decisive than what I was going to say
Todd Gray
Todd Gray Sep 17, 2021 2:30PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Next weeks news. Nasdaq gains as investors rotate into tech growth stocks.
Ivan Ivan
Ivan Ivan Sep 17, 2021 2:30PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
What a joke. NASDAQ will go down further. The 3rd pandemic wave is about to and so it's definitely isn't best time for the tech growth stocks.
James Edwards
James Edwards Sep 17, 2021 2:01PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Title correction: "Biden approval sees massive drop in approval during first half year in office, and Kamala has lowest approval of any VP in recent history, even in push polling despite 24/7 North Korea-style propaganda in their favor by MSM"....meanwhile high inflation, high tax, reckless spending, and handed over Afghanistan to the Taliban after 20 years and trillions of taxpayer dollars.
James Edwards
James Edwards Sep 17, 2021 2:01PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
And let's not forget that COVID cases are rising faster now AFTER 350+ million americans (and 5 billion people globally) have been vaccinated than before...this time with vaccine -resistant variants being selective spread by vaccinated people.
Chris Fran
Chris Fran Sep 17, 2021 2:01PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
lol... you need help... psycho help.. lol
Ivan Ivan
Ivan Ivan Sep 17, 2021 1:59PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Sell bigtech and covid farma, buy oil, natural gas and smallcap. Got it.
Pratt Man
Pratt Man Sep 17, 2021 1:19PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Republicans are 100% giving working families a tax cut. when guys like trump pay nothing, or hedge fund managers pay 7% on 1.2 billion.
James Edwards
James Edwards Sep 17, 2021 1:19PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Biden has been in office for 50+ years (or 120 years per his own recollection), but it is Trump's fault for the tax codes created during those years? And just fyi, Trump pays more in tax in a single year than you have probably paid in your entire life. There is a reason that socialists like AOC become millionaires after a few years in office and attend $30,000 per plate galas while pretending to be woke by wearing a "tax the rich" dress that costs more than you make in a year.
Chris Fran
Chris Fran Sep 17, 2021 1:19PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
BS... Trump doesn't pay more taxes more than I do in a lifetime. his real losses over the decade ensures that he keeps on deduction his income. learn accounting.. but not at Trump U
Michael Redden
Michael Redden Sep 17, 2021 1:19PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
remember a time when the only issue in the world was trumps tax records? The world was a wayyy better place,Trump > biden
Trevor Roberts
LimitUp Sep 17, 2021 12:53PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
If they raise taxes that would round things out nicely, dont want to leave anything out.
Michael Angelo
Michael Angelo Sep 17, 2021 12:21PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Like to check the companies from the investment managers advise in tbe articles. Don't have a clue or at least the company doesn't seem very profitable. Please research on this.
Jimmy Joseph
Jimmy Joseph Sep 17, 2021 12:13PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Tax back in news after two days
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email