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S&P 500 Stumbles on Cautious Sentiment Even as Government Set to Avoid Shutdown

Stock MarketsSep 30, 2021 03:46PM ET
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© Reuters.

By Yasin Ebrahim

Investing.com – The S&P 500 slumped Thursday as investors remained wary of making big bets on stocks even as the government is set to avoid shutdown.   

The S&P 500 fell 0.5%, the Dow Jones Industrial Average fell 1%, or 348 points, the Nasdaq was up 0.2%.

The House backed a short-term appropriations bill, passed earlier in the Senate, to keep the government running through Dec. 3 President Joe Biden is expected to sign the bill  and avoid a government shutdown.

But the drama on Capitol Hill will renew as lawmakers remain at stalemate over the plans to raise the debt ceiling to prevent the U.S. defaulting on its obligations by Oct. 18. 

As well as uncertainty over developments in Washington, economic data showing a third-weekly rise in jobless claims stoked fears about a slowing recovery in the job market and weighed on sentiment.

In the week ended Sept. 25, jobless claims rose by 11,000 to 362,000, missing economists' expectations for a fall to 330,000.

Cyclical stocks - those that moved in tandem with the economy - were the worst performing as financial, industrials and energy traded in the red. 

Energy, which is set to end the month positive, was also dragged lower by falling oil prices following data on Wednesday showing an increase in US crude oil stocks as production normalized. 

"US crude oil production grew by another 500,000 barrels per day week-on-week to reach 11.1 million barrels per day, which can be seen as a normalisation following the hurricane-related outages," Commerzbank (DE:CBKG) said. 

Against the backdrop of ongoing political drama, investor sentiment continues to be challenged and weighed on the broader market as tech gave up some on its intraday gains.

Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), Amazon.com (NASDAQ:AMZN), Facebook (NASDAQ:FB) and Alphabet (NASDAQ:GOOGL) the so-called  Fab 5, which make up for about 25% of the S&P 500, were mixed.

The struggles in tech come even as the appreciation in Treasury yields took a breather, though the 10-year yield continued to trend above 1.5%.

On the earnings front, Bed, Bath, & Beyond, Inc. (BBBY) fell 21% after reporting second-quarter earnings of $0.04 that fell well short of Wall Street expectations.

CarMax (NYSE:KMX), meanwhile, also reported quarterly results that fell short on the bottom line, sending its shares 11% lower.

S&P 500 Stumbles on Cautious Sentiment Even as Government Set to Avoid Shutdown
 

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Comments (4)
Mitchel Pioneer
Mitchel Pioneer Sep 30, 2021 4:14PM ET
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Mark your calendars, the laughingstock of the financial world almost set a closing low.  Can't wait for fraudulent Friday.
Marco cuevas
Marco cuevas Sep 30, 2021 4:05PM ET
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Just another september in the wacky market.
Keith Wilson
Keith Wilson Sep 30, 2021 3:55PM ET
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Lol sell programs kicking in the final half hour of trading is as sure as the sun rising in the east
Mitchel Pioneer
Mitchel Pioneer Sep 30, 2021 3:35PM ET
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More losses criminally whisked out of the system "in late trade," as the biggest investment joke in the world once again "rallies" in the final hour.  Truly, the laughingstock of the financial world.
Keith Wilson
Keith Wilson Sep 30, 2021 3:35PM ET
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Yep. Rinse and repeat
 
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