The market is expected to start the final week of trading in September with significant losses after stocks slumped on Monday.
111 points, or 0.3%, were lost by the Dow Jones Industrial Average. The Nasdaq Composite dropped 0.2% and the S&P 500 dipped 0.2%.
This month, stocks have struggled as bond yields increased as a result of the Federal Reserve’s indication that interest rates may stay higher for longer. This month, the benchmark 10-year Treasury yield increased by more than 30 basis points to 4.43%. During the typically slow trading month, the market also had to battle with a surge in crude oil prices and a winning streak for the dollar.
The S&P 500 is on course to have its worst month since December after falling more than 4% in September. This will be the index’s second straight losing month. The growth companies took the brunt of the sell-off, sending the tech-heavy Nasdaq Composite down 6% in September. The index is also on track to post its largest monthly loss since December. This month, the blue-chip Dow is down 2% less than usual.
Source (CNBC)