The S&P 500 closed out a weak September as Treasury yields surged toward their highest levels in years. The Dow Jones Industrial Average led the monthly decline while the Nasdaq Composite bucked the trend, and investors are now looking ahead to Friday's jobs report and the Federal Reserve's late-October rate decision.
The S&P 500 dropped 0.3% in regular trading Wednesday. The Dow lost more than 440 points, or 0.9%, while the Nasdaq Composite advanced 0.2%, outperforming both benchmarks on the day.
September closes out a weak month for the S&P 500
September, historically a weak month for stocks, was no exception this year. The S&P 500 dropped 0.5% over the month. The Dow lost 4.3%, while the Nasdaq bucked the trend and gained 1.9%.
For the third quarter as a whole, the S&P 500 and the Nasdaq each advanced about 2%. The Dow lost 2.7% over the same stretch. Futures pointed to a steadier open Thursday: futures tied to the Dow added 60 points, and S&P 500 and Nasdaq-100 futures each gained 0.1%.
Treasury yields climb as the Fed decision looms
Investors are weighing a softer inflation picture against still-elevated Treasury yields and uncertainty over the Federal Reserve's next rate decision, which is scheduled for the end of October. The 10-year Treasury yield breached 5.3% on Wednesday, trading near its 2007 highs. The 30-year yield surpassed 5.6%, its highest level since 2002.
Yet the inflation data came in cooler than expected. The personal consumption expenditures price index for August rose 3.4% over the prior 12 months, below the Dow Jones consensus call for 3.7%. According to Tracie McMillion, head of global asset allocation strategy at Wells Fargo Investment Institute: "While those factors remain headwinds, corporate earnings have continued to show resilience."
Investors are now looking ahead to a fresh round of earnings reports. On Thursday, markets will digest initial jobless claims, followed by Friday's September jobs report. Nike is due to report earnings after the bell.
Source: CNBC
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