US Markets Meltdown: Dow Jones, S&P 500, and Nasdaq Plunge; Sell-Off Uncovered

 

US Markets LIVE, Sept 26, 2023: The US stock market indexes opened lower on Tuesday, as investors worried about the elevated interest rate to stay longer period and the potential impacts of the government shutdown.

Dow Jones opened a gap-down of 144.2 points at the 33862.68 level, while the S&P 500 made a negative opening of 24.56 points at the 4312.88 level. The tech-heavy Nasdaq Composite index also made a lower opening of 90.36 points at 13180.96 level on Tuesday.

 

US Markets Live Updates Today

 

At 11.50 AM EDT, The US stock market indexes have extended their early losses and are trading sharply lower. Dow Jones is trading lower by 325.93 points or 0.96 percent at the 33680.95 level while S&P 500 is trading lower by 52.10 points or 1.20 percent at the 4285.34 level. The tech-heavy Nasdaq Composite index extended early losses and is trading sharply lower by 164.66 points or 1.24 percent at 13106.66 levels. 

 

US Market News

 

The US stock market sentiments were dented, as investors reacted to the Federal Reserve’s hawkish stance in last week’s meeting. One more rate hike in the current year, a higher interest rate for a longer than expected period till inflation cools down to below 2%, and fewer than expected rate cuts in the next year all have demotivated the investors and triggered a selloff in the markets.

Another reason that hit the market sentiments is the potential government shutdown. On Monday, the global rating agency, Moody’s Investors Service warned that “U.S. government shutdown probably wouldn’t hit the economy hard but would be “credit negative” for its debt”. 

On the economic front, new home sales fell in August, while CB Consumer Confidence data came lower in September compared to the previous month and as per expectations. The Richmond Federal Reserve’s manufacturing index rose in September, as compared to August, and came better than expected.

The 10-year Treasury yield is trading inched lower at 4.524%, after closing at 4.537% on Monday, its highest level since October 2007

 

Stocks in News Today

 

The share price of warehouse retailer Costco is trading slightly lower by 0.31% ahead of the quarterly earnings which will be announced after the closing bell.

The organic wholesale food distributor United Natural Foods tanked 22% due to weak guidance, the company beat profit expectations and reported revenue in line with the forecast.

Shares of Alibaba are trading lower by 0.88% as the company is set to list its logistics unit Cainiao on the Hong Kong Stock Exchange.

The big financial institutions such as JP Morgan, Wells Fargo, Goldman Sachs, and Morgan Stanley are all trading lower between 0.6% to 1% after JPMorgan Chase CEO Jamie Dimon warned interest rates may need to rise further to curb inflation.

The elevated Treasury yields at a multiyear high hit the mega-cap growth stocks, the share price of Apple, Microsoft, Meta Platforms, and Amazon are trading lower between 0.6% to 3% 

 

Oil Prices

 

The crude oil prices rebounded and are trading in the green on Tuesday. Earlier on Tuesday both the oil benchmarks traded negatively and were under pressure due to global economic concerns. The stress in China’s property markets and increasing fear of another US interest rate hike have put oil prices under pressure in the last few days.

The US WTI crude is trading higher by 0.55% at $90.17 per barrel while London-based Brent crude oil is trading higher by 0.37% at $92.22 per barrel.

 

US Markets at Close

 

The US stock market indexes fell sharply on Tuesday, as investors worried about rising bond yields and the strengthening dollar index. The weaker-than-expected consumer confidence data also worried investors about the economy.  Dow Jones and S&P 500 fell sharply by 1.14 percent and 1.47 percent respectively, while the tech-heavy Nasdaq composite index was down by 1.57 percent on Tuesday.

 

Also, read  Stock Market Prediction Next Week (25- 29 Sept 2023)

                   Global Stock Market Weekly Analysis (18-22 Sept 2023)

 

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