Bad Month
On Thursday, the Dow Jones Industrial Average fell as Wall Street sought to end a tough red month.
After gaining at the opening bell, the Dow fell more than 1%. The S&P 500 fell 0.5%, while the Nasdaq Composite rose 0.2%. The market’s weakness occurred on the last day of what has been a difficult month for stocks. The Dow was down more than 3% in September, while the S&P 500 was down about 4%, and the Nasdaq was down more than 4%.
September lived up to its reputation as a tough month for investors, causing stock portfolios to bleed, although not too significantly.
Stocks were beaten down on Thursday by concerns about inflation and supply chain difficulties. Bed Bath & Beyond’s shares dropped more than 20% in early trading after the firm stated supply chain issues affected its second-quarter performance, and the news hurt other retail companies too. Walgreens Boots Alliance dropped more than 2%.
However, tech stocks rose as the Nasdaq attempted to end a four-day losing streak. The recent rise in the 10-year Treasury yield, which went over 1.567% earlier this week, has hurt tech companies. Rising rates are regarded as a negative for tech companies because they make future cash flows less appealing to investors. The rise was spurred by inflation fears and the Federal Reserve’s hints that it would soon begin winding down its asset purchases.
The market had a mediocre third quarter due to September’s losses. Do you think October will be a better month for stocks?
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.
