- US stocks are trading lower: risk aversion takes its toll on values.
- Deteriorating consumer sentiment and falling new home sales are reigniting fears about the health of the U.S. economy.
- US stock indices were generally down more than 1% on Tuesday.
The Standard & Poor’s stock index (S&P 500) fell in Tuesday’s session, falling 64 points and closing at $4,273.53. The Dow Jones Industrials Index (DJIA) fell 388 points and closed the day with losses of 1.14%, at $33,618.88. The Nasdaq Composite Index also lost almost 208 points, closing -1.57% at $13,063.61.
The DJIA posted its worst single-day drop since March, while the S&P posted its lowest close since early June.
Sales of new homes in the US missed expectations, with a decrease of 8.7% compared to July.
American consumer confidence also fell: the Conference Board’s consumer confidence index stood at 103 points in September, almost six points lower than the 108.7 in August.
The decline in economic health indicators of the US economy caused the eleven sectors of the S&P 500 to close in the red on Tuesday.
September is on track to reinforce its reputation as a bad month for stocks: the S&P 500 loses almost 7% for the month, while the DJIA and Nasdaq move away from the month’s opening prices by 5% and 3% , respectively.
The Federal Reserve (Fed) expects fewer rate cuts next year than markets originally expected, and Fed officials have harassed investors with hawkish comments that could lead the Fed to raise rates. rates even higher than expected by the markets.
Adding fuel to the short fire, the US continues to face investor jitters as the US government heads towards a possible administration shutdown, and rumors of a possible bipartisan deal do little to calm investor nerves. market.
S&P 500 Technical Outlook
The S&P 500 is falling on Tuesday, sliding to $4,272.00, a far cry from last week’s high of $4,460.00, and is down 7.25% from the late July high near $4,600.00.
Daily candlesticks show the S&P 500 sliding towards the 200-day SMA in the $4,200.00 area, and there is little long-term technical support if stocks continue to sell off.
The S&P 500’s last significant low is well below the current price action, near $3,800.00 in March.
SP500 Daily Chart
SP500 technical levels
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
