This website collects cookies to deliver better user experience. Cookie Policy
Accept
Sign In
The Wall Street Publication
  • Home
  • Trending
  • U.S
  • World
  • Politics
  • Business
    • Business
    • Economy
    • Real Estate
    • Markets
    • Personal Finance
  • Tech
  • Lifestyle
    • Lifestyle
    • Style
    • Arts
  • Health
  • Sports
  • Entertainment
Reading: Stocks Fall, but S&P Ekes Out a Quarterly Gain
Share
The Wall Street PublicationThe Wall Street Publication
Font ResizerAa
Search
  • Home
  • Trending
  • U.S
  • World
  • Politics
  • Business
    • Business
    • Economy
    • Real Estate
    • Markets
    • Personal Finance
  • Tech
  • Lifestyle
    • Lifestyle
    • Style
    • Arts
  • Health
  • Sports
  • Entertainment
Have an existing account? Sign In
Follow US
© 2024 The Wall Street Publication. All Rights Reserved.
The Wall Street Publication > Blog > Markets > Stocks Fall, but S&P Ekes Out a Quarterly Gain
Markets

Stocks Fall, but S&P Ekes Out a Quarterly Gain

Editorial Board Published September 30, 2021
Share
Stocks Fall, but S&P Ekes Out a Quarterly Gain
SHARE

A selloff in shares of cyclical companies drove major indexes lower Thursday, capping a tumultuous September that marked the S&P 500’s worst month since March 2020.

Contents
Investors have sold off shares of large technology companies.Quarterly Markets Review

All three major U.S. indexes finished the day lower after a choppy session. Stocks jumped to start the day, but then quickly wobbled and turned negative, with losses accelerating in the final minutes of trading. The Dow Jones Industrial Average fell 546.80 points, or 1.6%, to end at 33843.92, weighed down by losses in companies ranging from machinery giant Caterpillar to home-improvement retailer Home Depot.

The S&P 500 lost 51.92 points, or 1.2%, to finish at 4307.54. The Nasdaq Composite edged down 63.86 points, or 0.4%, to 14448.58.

After a long stretch of gains for the U.S. stock market this year, September was the month when percolating investor anxiety finally came to a head, forcing all three major indexes lower. The S&P 500 tumbled 4.8% in September, its largest monthly decline since March 2020, when the coronavirus pandemic spurred a selloff. The Dow Jones Industrial Average slid 4.3% for September, while the Nasdaq fell 5.3%.

Despite the slump, the S&P 500 managed to eke out a 0.2% gain for the quarter to notch its sixth consecutive quarter of gains. The Nasdaq and Dow, meanwhile, ended the period lower, marking their first quarterly losses since the first three months of 2020.

Investors have navigated more uncertainties lately, including concerns that higher inflation—driven in part by supply-chain issues—will stick around longer than expected. Also dogging markets recently were fears of contagion from debt-laden property developer China Evergrande Group, as well as data that has shown that U.S. economic growth is starting to slow.

Continuing wrangling in Washington has weighed on investors’ minds, too. Congress on Thursday passed a bill extending government funding through Dec. 3.

The combination of all of those factors was enough to knock the U.S. stock market off its monthslong winning streak in September. The S&P 500 is now down 5.1% from its closing record last reached Sept. 2. The index also closed Thursday below its 100-day moving average for the first time since November 2020.

“We’ve entered a slightly more difficult, more wonky stage of the recovery, and there’s a number of headwinds emerging against the upward march we’ve seen since last year,” said Sebastian Mackay, a multiasset fund manager at Invesco. 

Last week, the Federal Reserve signaled it would start to reduce bond buying as soon as November and possibly begin to raise interest rates next year. The expectation for interest-rate increases and higher inflation—also reflected in rising oil and commodities prices—has led some investors to sell government bonds, whose yields have been near historically low levels.

The selloff cooled Thursday, with the yield on the benchmark 10-year Treasury note ticking down to 1.528% from 1.540% Wednesday. Yields and prices move inversely.

Many money managers expect that volatility in the stock market won’t necessarily abate with the start of a new quarter Friday. But with yields still trading at historically low levels, many concede that few places outside of the stock market can provide consistent, desirable gains. Even with the September slump, the S&P 500 is still up about 15% year-to-date.

“People realize that the only asset with real expected returns are equities. The market kind of seems to grind higher on this there-is-no-alternative environment,” said Edward Park, chief investment officer at U.K. investment firm Brooks Macdonald. “That won’t last if central banks make it clear they are raising rates regardless of the growth backdrop.”

Investors have sold off shares of large technology companies.

Photo: brendan mcdermid/Reuters

Looking ahead to the fourth quarter, some strategists and investors said they expect cyclical and small-cap stocks to outperform, especially if rising bond yields damp the shine of growth stocks. Shares of growth companies, including large tech stocks, tend to perform better in low-yielding environments because investors have more incentive to buy shares and await higher profits in the future.

“We see a repeat of history with another strong fourth quarter being led by small-caps and value, like last year,” said Ryan Detrick, chief market strategist at LPL Financial.

On Thursday, however, many growth stocks were the ones to outperform, while financials, industrials and consumer-staples stocks suffered. Netflix gained $11.28, or 1.9%, to end at $610.34, while Advanced Micro Devices jumped by $2.55, or 2.5%, to finish at $102.90.

Shares of companies ranging from Alaska Air Group to building-materials supplier Martin Marietta Materials, in contrast, pulled back, with both losing more than 3%.

In corporate news, shares of Virgin Galactic Holdings gained $2.74, or 12%, to end at $25.30 after the top U.S. aviation safety regulator said it had cleared the company to operate space flights, again. Shares of ​​ Bed Bath & Beyond fell by $4.93, or 22%, to $17.27 after the retailer lowered its guidance for the year as it reported slower traffic into its stores due to the Delta variant and supply-chain challenges.

Futures for Brent crude, the benchmark in international energy markets, fell 0.2% for the day to $78.52 a barrel.

Overseas, the pan-continental Stoxx Europe 600 ended nearly flat and notched a 3.4% decline for the month. The index finished higher for the quarter.

Indexes in Asia closed with a mixed performance. China’s Shanghai Composite added 0.9% for the day and notched a 0.7% gain for the month. Hong Kong’s Hang Seng declined 0.4% in daily trading, extending its monthly losses to 5%. Concerns over Chinese growth and the resilience of its property sector have weighed on global sentiment this quarter. 

Write to Caitlin McCabe at [email protected] and Caitlin Ostroff at [email protected].

Quarterly Markets Review

Copyright ©2021 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

TAGGED:MarketsPAIDWall Street Publication
Share This Article
Twitter Email Copy Link Print
Previous Article Dr. Dre, Snoop Dogg, Eminem, Mary J. Blige, Kendrick Lamar to perform at Super Bowl halftime show Dr. Dre, Snoop Dogg, Eminem, Mary J. Blige, Kendrick Lamar to perform at Super Bowl halftime show
Next Article Electronic Arts Says CFO, COO Blake Jorgensen Plans to Leave Electronic Arts Says CFO, COO Blake Jorgensen Plans to Leave

Editor's Pick

Alyssa Farah Griffin: ‘The View’ Co-Host is Pregnant With Child #1!

Alyssa Farah Griffin: ‘The View’ Co-Host is Pregnant With Child #1!

Studying Time: 3 minutes The View co-host Alyssa Farah Griffin is pregnant! On ‘The View,’ Alyssa Farah Griffin breaks the…

By Editorial Board 3 Min Read
Melissa Rycroft Admits to Actually “Struggling” in Wake of DUI Arrest
Melissa Rycroft Admits to Actually “Struggling” in Wake of DUI Arrest

Studying Time: 3 minutes Melissa Rycroft is in a darkish place proper…

4 Min Read
Man fatally shot throughout argument over lady at gathering at Tuscaloosa storage unit; suspect jailed
Man fatally shot throughout argument over lady at gathering at Tuscaloosa storage unit; suspect jailed

One individual was killed and a number of other others injured in…

2 Min Read

Oponion

Exxon Pledges to Reduce Carbon Emissions From Operations to ‘Net Zero’

Exxon Pledges to Reduce Carbon Emissions From Operations to ‘Net Zero’

Exxon Mobil Corp. XOM 1.68% said it has set a…

January 18, 2022

White Home, American Airways will launch aircraft crash victims checklist

Aviation skilled Captain Mike Coffield breaks…

January 31, 2025

10 Greatest 5-Inch Inseam Shorts for 2025 | Fashion

We independently consider all advisable services.…

July 22, 2025

Why Your Pants Really feel Off (Even when They Technically Match) | Fashion

We independently consider all advisable services.…

July 9, 2025

Exxon Mobil’s Gusher of Cash Means Harder Decisions Ahead

Capital allocation discussions between Exxon Mobil…

February 1, 2022

You Might Also Like

Shares fall as US-China commerce struggle reignites after Trump threatens tariff hike
Markets

Shares fall as US-China commerce struggle reignites after Trump threatens tariff hike

Home Majority Chief Steve Scalise responds to Chuck Schumer’s shutdown feedback, JD Vance’s viral submit and the toll of the…

6 Min Read
Jamie Dimon warns of main market threat in subsequent few years
Markets

Jamie Dimon warns of main market threat in subsequent few years

CPA and market analyst Dan Geltrude joins ‘Mornings with Maria’ to interrupt down the record-setting rally fueled by synthetic intelligence,…

4 Min Read
Meme inventory mania 2.0
Markets

Meme inventory mania 2.0

Pacer ETFs President Sean O’Hara discusses the advantages of ETFs and lays out his favourite investments on ‘The Claman Countdown.’…

4 Min Read
Traders have fun Japan’s ‘Iron Lady’ election win
Markets

Traders have fun Japan’s ‘Iron Lady’ election win

Federated Hermes CIO Stephen Auth weighs in on Japan's first elected feminine prime minister and provides an concept on what…

3 Min Read
The Wall Street Publication

About Us

The Wall Street Publication, a distinguished part of the Enspirers News Group, stands as a beacon of excellence in journalism. Committed to delivering unfiltered global news, we pride ourselves on our trusted coverage of Politics, Business, Technology, and more.

Company

  • About Us
  • Newsroom Policies & Standards
  • Diversity & Inclusion
  • Careers
  • Media & Community Relations
  • WP Creative Group
  • Accessibility Statement

Contact

  • Contact Us
  • Contact Customer Care
  • Advertise
  • Licensing & Syndication
  • Request a Correction
  • Contact the Newsroom
  • Send a News Tip
  • Report a Vulnerability

Term of Use

  • Digital Products Terms of Sale
  • Terms of Service
  • Privacy Policy
  • Cookie Settings
  • Submissions & Discussion Policy
  • RSS Terms of Service
  • Ad Choices

© 2024 The Wall Street Publication. All Rights Reserved.

Welcome Back!

Sign in to your account

Lost your password?