Dow -388.00 at 33618.84, Nasdaq -207.71 at 13063.61, S&P -63.91 at 4273.53
The major indices all fell more than 1.0% today, erasing yesterday’s modest rebound right out of the gate. The negative bias was due in part to ongoing worries about higher interest rates.
The 10-yr note yield climbed another two basis points today to 4.56%, after hitting 4.48% at this morning’s low.
Concerns about higher rates were stoked by JPMorgan Chase CEO, Jamie Dimon, who told the Times of India that he is not sure the world is prepared for 7%, and Minneapolis Fed President Kashkari (FOMC voter), who said, according to Bloomberg, that he thinks another rate hike before year-end would likely be needed if the economy is stronger than expected.
Seasonality was cited as another potential factor contributing to the negative price action. September, historically, has been the worst month of the year for the S&P 500. With today’s losses, the S&P 500, Nasdaq, and Russell 2000 are now down 5.2%, 6.9%, and 7.2%, respectively, this month.
Mega caps ( I was wrong on GOOGL and AMZN) and semiconductor stocks paced broad-based losses, but it was the rate-sensitive utilities sector (-3.1%) that saw the biggest decline today.
The index charts are getting messy and only SPX and NDX have not yet broken their respective 200-day moving averages.
See you in the morning.