September 25 Market Update
The S&P 500 rose 0.5 percent in late morning trading in New York, hovering around 3,261. The NASDAQ climbed 108 points to 10,780 while the Dow Jones gained 68 points to 26,883.
The S&P 500 is now down almost 7% in September, but is up more than 5% for the quarter. The tech-heavy NASDAQ is up more than 7% for the quarter, but is now down more than 12% for the month.
Mega-cap tech stocks that powered this year’s unlikely rally in equity markets are now weighing on market indices.
Contributing to tech weakness is a Department of Justice proposal that would curb longstanding legal protections for Internet companies.
A breakdown in negotiations over additional stimulus relief is also hampering market performance, though Democrats signaled yesterday they would bring a $2.4 trillion proposal.
An uptick in U.S. coronavirus cases along with the risk of a rising wave of cases in Europe is also weighing on markets. The U.S. reported more than 44,000 new cases yesterday.
New orders for durable goods rose 0.4% in August, as the economy rebounded from the shutdown, although economists had expected a stronger number.
Yields on 10-year Treasury notes ticked lower to 0.657%.
Chinese shares slid as Evergrande, one of the country’s largest real estate developers, plummeted under liquidity fears.
The VIX index, the market’s “fear gauge” fell 1% to 28.2.
Any opinions are those of Burke Koonce and not necessarily those of Raymond James. There is no guarantee that these statements, opinions or forecasts provided herein will prove to be correct. Any information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendation. Burke Koonce is a financial advisor at Raymond James & Associates, Inc., member New York Stock Exchange, member SIPC. www.raymondjames.com/burkekoonce