[ad_1]
Traders work on the floor of the New York Stock Exchange.
NYSE
The Dow Jones Industrial Average retreated on Friday as investors followed the latest news about a potential government shutdown and looked to the end of what has been a tough month.
The blue-chip average lost 258 points, or 0.8%, led down by Travelers Companies and Walmart. The S&P 500 dropped 0.3%, while the Nasdaq Composite added 0.1%.
The Dow and S&P 500 were higher earlier in the day, as traders cheered data showing inflation may be easing. At session highs, the Dow had climbed more than 225 points, or 0.7%, while the S&P 500 added 0.8%. The Nasdaq Climbed had rallied around 1.4% at its best point in the session.
The latest reading of the personal consumption expenditures price index, which is the Federal Reserve’s preferred inflation metric, came Friday morning. So-called core PCE, which strips out volatile food and energy prices, rose 0.1% in August and 3.9% annually. Economists polled by Dow Jones expected that the core PCE would advance 0.2% on a monthly basis and 3.9% year over year.
But investor concerns about the potential for a government shutdown weighed on the market later in the session. House GOP leaders failed to pass a short-term spending bill on Friday, bolstering fears that federal lawmakers wouldn’t reach an agreement on time.
“The market will also need to deal with what appears to be a likely government shutdown,” said Chris Fasciano, portfolio manager at Commonwealth Financial Network. “How long it lasts and how it effects short-term economic data, consumer confidence and interest rates will be amongst key topics for investors to pay attention to.”
The market is expected to see sharp losses for the trading month and quarter, both of conclude with Friday’s close.
The S&P 500 is set to finish the month down 5% and the quarter lower by 3.8%. The Nasdaq Composite is off 6% in September, and down 4.3% for the quarter. Both are on track to post their worst months this year. The Dow is on track for a 3.7% decline this month and a 2.8% fall for the quarter.
“Stocks have declined too much and too fast during this seasonally volatile time of the year driven by a long list of worries,” said Carol Schleif, CIO of the BMO Family Office. “The market only a few months ago was worry free amid the belief that the Fed could engineer a soft landing, and now the market’s worry closet door is wide open as investors raise questions about the economic outlook.”
The Dow and S&P 500 are set to end the week down 1.6% and 1%, respectively. The Nasdaq Composite should finish 0.2% lower.
[ad_2]
Source link