Wall Street Stocks Fall as Investors Retreat in September

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Key Takeaways

September so far has produced mediocre returns for investors
Dow Jones, S&P500, and Nasdaq endured their worst week since June

Stocks Decline on Renewed Outlook Fears

The US stock market fell on Friday, logging the whole week in the red as investors reversed their bets on the risky assets due to heightened uncertainty for the outlook of the economy.

The S&P500, one of the three major averages in the US stock market, pulled back by 0.77%, to end Friday’s session at 4,458.58. The benchmark index registered its worst weekly performance since February.

The other two major stock gauges, the Dow Jones Industrial Average and the Nasdaq Composite slipped 0.78%, and 0.87%, respectively. The 30-stock Dow Jones closed Friday’s action down 271.66 points at 34,607.72. The tech-centered Nasdaq Composite settled lower by 132.76 points at 15,115.49.

Collectively, the three major stock benchmarks experienced their worst week since June.

Market participants were largely concerned that the economic growth could be reaching a peak after several reports, including jobs data, indicating a slowdown in the economic recovery. The latest employment report showed that US hiring slowed sharply in August while the Delta variant of the coronavirus kept sweeping across the states.

European Bourses Aim Higher After a Losing Week

Stocks across the European market opened on a strong note on Monday. The pan-continental Stoxx Europe 600 is trading higher by about half a percent in the early hours of the first trading day of the week.

Major indexes in the old continent trade to the upside after last week’s decision by the ECB to introduce a tighter monetary policy framework. Investors on Friday retreated from stocks as risk-averse mood prevailed due to the increased uncertainty over how a reduction in monthly asset purchases will pan out.

The European Central Bank has been supporting eurozone markets, such as banks and businesses, by buying as much as €20bn in bond purchases as a way to fight the negative effect of the pandemic and to save the economy from a downturn.

US Futures Point to an Optimistic Open

Traders and investors are feeling somewhat more confident to place larger bets on the already highly valued stocks on Wall Street. Following a losing week for all three major stock indexes, the market today is poised to open to the upside.

Contracts futures tied to the Dow Jones Industrial Average were up by around half a percent, or nearly 200 points, in pre-market trading. Futures on the S&P500 and the tech-heavy Nasdaq Composite also advanced of the opening bell in New York on Monday.

Cryptocurrencies Seek Direction

Bitcoin today has been trading to the downside as the recent market rally has been flashing signs of exhaustion. The price of bitcoin slipped to a session low of $44,300 and is currently hovering near $44,500 per token.

Over the weekend, major cryptocurrencies traded mostly sideways. The Ethereum coin, ether, was pinned at the area of $3,300 per coin and is now changing hands slightly below that milestone.

What to Expect

This week brings a fairly light economic agenda to the financial markets. Investors will be on the lookout for the latest inflation data for the US. The US consumer price index report, slated for Tuesday, will be key for feeling the pulse of the US economy.