Wall St. wallows as S&P 500 posts worst month, quarter since pandemic outbreak

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Wall St. wallows as S&P 500 posts worst month, quarter since pandemic outbreak

On Thursday, all three key indices of Wall St. had wrapped up the session sharply lower with trade-sensitive Dow leading the tally of declines, while Wall Street bellwether S&P 500 had posted the worst monthly percentage decline since the onset of pandemic outbreak, winding up a turbulent month alongside quarter consistently being harrowed by lingering concerns related to a rapid rise in delta cases, inflation worries, US Fed’s decision to resume taper-talks alongside a ratting battle over budgetary policy in the Capitol Hill.

On top of that, having been faced off with a broad-based sell-off wave on Thursday, benchmark S&P 500 had snapped up a seven-month winning streak, while tech-heavy Nasdaq and S&P 500 had witnessed their largest monthly percentage declines since March 2020.

In point of fact, a rise in US initial jobless claims last week with California and Texas bearing the heaviest brunt, had tormented investors’ morale about a plausible slowdown in economic recovery over Q3, 2021, while fanning up the flames further, US Treasury’s Yellen had reiterated that the impacts of a failure from US Fed to lift its cap on Government borrowing, without which the US Govt.

would run out of fresh liquidities by October 18, would be devastating and irreversible, accelerating a broader sell-off wave across US capital markets.

Wall St. teeters as S&P 500 posts worst monthly decline

Citing statistics, in the day’s Wall St.

closing bell, trade-sensitive Dow dwindled 1.59 per cent to 33,843.92 and benchmark S&P 500 shed 1.19 per cent to 4,307.54, while tech-heavy Nasdaq was nudged 0.44 per cent lower to wind down the session at 14,448.58.

Over the month, Dow took a tattering header of 4.16 per cent and S&P 500 declined as much as 4.79 per cent, as Nasdaq dealt with a hefty blow of 5.62 per cent. On the ‘July to September’ quarter, Dow had lost 2.28 per cent and S&P 500 shed 0.29 per cent, while Nasdaq fell 0.50 per cent.

Meanwhile, referring to a growing rancour over US Federal Reserve’s decision to lift a cap on Government borrowing, an investment strategy analyst at Baird in Louisville, Kentucky, Ross Mayfield, said, “The market’s been resilient, but the risk tied up in the policy headlines over the debt ceiling, the chaos around these spending bills is weighing on the markets a bit as the quarter comes to a head.

In a larger context it’s been pretty mild. We’re coming on the heels of seven ‘up’ months and volatility’s been fairly muted despite the headline risks, not to mention COVID-19 and tapering. The market had to take a pause, and a pause is necessary and probably to be expected”.