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S&P 500 Ends Lower as China-led Global Growth Worries Persist; Fed Eyed

Stock MarketsSep 21, 2021 04:06PM ET
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© Reuters.

By Yasin Ebrahim

Investing.com – The S&P 500 slipped Tuesday, as an intraday rebound faded amid slowing global growth worries and difficulties in China ahead of the Federal Reserve monetary policy decision due Wednesday.  

The S&P 500 fell 0.1%, the Dow Jones Industrial Average slipped 0.15%, or 50 points, the Nasdaq added 0.2%.

Cyclical sectors including energy and consumer discretionary recovered some losses from Monday’s rout, but gains were kept in check by concerns about a potential economic crisis in China, and the wider implications for global growth, as beleaguered real estate giant Evergrande is unlikely to receive a government bail out.

“We believe Beijing would only be compelled to step in if there is a far-reaching contagion causing multiple major developers to fail and posing systemic risks to the economy,” the rating agency said in a note dated Sept 20.

EOG Resources (NYSE:EOG), Marathon Petroleum (NYSE:MPC), and ConocoPhillips (NYSE:COP) led the energy sector higher. ConocoPhillips receive an added boost after Shell (LON:RDSa) said it would sell its Permian Basin assets to the company for $9.5 billion in cash.

Health care stocks were also above the flatline as most vaccine stocks climbed following reports that Washington will mandate that all teachers and school staff must be fully vaccinated against Covid-19 by Nov. 1.

Pfizer (NYSE:PFE) ended lower, while BioNTech (NASDAQ:BNTX) rose 1%, and Moderna (NASDAQ:MRNA) was up 2%. Johnson & Johnson (NYSE:JNJ) pared some gains despite releasing positive vaccine results showing that a second dose of its coronavirus vaccine boosts protection for moderate-to-severe Covid-19 to 94%.

Tech struggled to join in the broader market rebound as investors appeared wary of dip-buying in tech following a selloff a day earlier.

Google-parent Alphabet (NASDAQ:GOOGL), Apple (NASDAQ:AAPL), Facebook (NASDAQ:FB), Amazon (NASDAQ:AMZN) and Microsoft (NASDAQ:MSFT), were mostly flat.  

Uber Technologies (NYSE:UBER) jumped nearly 12% after the ride-sharing company upgraded its forecast, estimating a potential maiden adjusted profit in third quarter.

The company guided third-quarter gross booking to between $22.8 billion and $23.2 billion up from a prior forecast of between $22 billion to $24 billion.

The tentative rebound on Wall Street comes just as the Federal Reserve kicked off its two-day meeting.

Ahead of the meeting, the Fed’s plan to trim its $120 billion monthly bond purchase program has dominated investor attention, but some say believe the taper has been priced in.

“I think that tapering is priced into the market at this point,” Darren Schuringa, CEO of ASYMmetric ETFs said in an interview with Investing.com on Tuesday. "But higher interest rates are going to be problematic for the consumer and for the economy going forward."

Beyond the taper, however, the central bank’s projections on a first rate hike, currently expected in 2023, could surprise markets.

“If the Fed does signal an earlier rate hike [in 2022], that would be a negative shock to the equity markets, but I don't expect that,” Schuringa added.

S&P 500 Ends Lower as China-led Global Growth Worries Persist; Fed Eyed
 

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Comments (10)
Sol Wein
Sol Wein Sep 22, 2021 8:39AM ET
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Its not china you need to worry about, its the US.
Madi Azibayev
Madi Azibayev Sep 21, 2021 9:38PM ET
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I thought we were okay just few hours ago hehehe🤪
Paul Browning
Paul Browning Sep 21, 2021 9:11PM ET
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The Dow and NDX are forming nice tops. The real story is we bounced high in the last 45 min yesterday anf then resumed a downward pattern. Another meaningful drop tomorrow and I think we're finally taking a long delayed sharp drop.
Jason Lee
Jason Lee Sep 21, 2021 8:55PM ET
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Hedgies trying to find any reasons to short till tomorrow
Aleksandar Balimezov
Aleksandar Balimezov Sep 21, 2021 6:51PM ET
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i don't know what will say this man next day, but i see chart of S&P500 analyse and see that this broke trendline. will go down for sure. price action and trend lines never lies
New Jazenevd
New Jazenevd Sep 21, 2021 6:34PM ET
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Powell will not say anything new tomorrow and market will go higher after this, while article writers will be busy explaining why the market went up because Powell said this and did not say that.
Oliver DiTwister
Oliver DiTwister Sep 21, 2021 5:34PM ET
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No tapering will be announced because of china crisis!! And than the opposite will happen all will crash down because of fears
Louis Lipps
Louis Lipps Sep 21, 2021 5:08PM ET
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Taper is priced in?  We'll see about that if they announce a taper tomorrow.
md noornobi
md noornobi Sep 21, 2021 4:40PM ET
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md noor nobi
Rasall aile
Rasall aile Sep 21, 2021 4:23PM ET
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hi sir
Barış Kaya
Barış Kaya Sep 21, 2021 4:23PM ET
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Musa Suraju
Musa Suraju Sep 21, 2021 4:23PM ET
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hi please guys am new here in this application and pls i need your help pls 🙏🙏. how can i invest in to it
 
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