As the market is expected to begin the final trading week of September with significant losses, stock futures moved down on Monday.
The Dow Jones Industrial Average’s futures decreased 45 points, or 0.1%. Futures for the Nasdaq 100 and S&P 500 both decreased by 0.1%.
This month, stocks have struggled as bond yields increased as a result of the Federal Reserve’s indication that interest rates will stay higher for longer. The benchmark 10-year Treasury yield has climbed more than 30 basis points this month to 4.43%. The market also dealt with a rebound in crude oil and a winning run in the dollar during the traditionally slow trading month.
The S&P 500 has fallen 4.2% in September, on pace for its second straight losing month and its worst month since December. The tech-heavy Nasdaq Composite is down 5.9% in September as growth stocks bore the brunt of the sell-off, also headed for its biggest monthly loss since December. The blue-chip Dow is off by a more modest 2.2%. this month.
“Once again, the move in rates has proven to be too much too fast for equity markets to handle,” said Adam Turnquist, chief technical strategist at LPL Financial. ”The recent breakout raises the question of how high yields will go — an important question that could continue to weigh on risk sentiment.”
Source (CNBC)
