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U.S. stock markets fell sharply lower on Tuesday following the release of several weak economic data. Market participants remained highly concerned that the Fed’s decision of pursuing higher interest rate for longer period may result in economic downturn in near future. All three major stock indexes ended in negative territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) tumbled 1.1% or 388 points to close at 33,618.88. Notably, 28 components of the 30-stock index ended in negative territory, while 12 ended in positive territory. At its intraday low, the blue-chip index was down more than 183 points.
The tech-heavy Nasdaq Composite finished at 13,063.61, plunging 1.6% due to weak performance of large-cap technology stocks. The major loser of the index was Cintas Corp. (CTAS - Free Report) . Shares of the company plummeted 5.3%. Cintas currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The S&P 500 plummeted 1.5% to end at 4,273.53. The broad-market closed below its crucial support base of 4,300 for the first time since Jun 9. Moreover, the index fell below the key support base of 100-day moving average on Sep 21 for the first time since March and continued to trade there. This indicates possibility of more decline for the index.
All 11 broad sectors of the benchmark ended in negative territory. The Consumer Discretionary Select Sector SPDR (XLY), the Technology Select Sector SPDR (XLK), the Utilities Select Sector SPDR (XLU), the Industrials Select Sector SPDR (XLI), the Materials Select Sector SPDR (XLB), the Financials Select Sector SPDR (XLF), the Communication Services Select Sector SPDR (XLC) and the Health Care Select Sector SPDR (XLV) tanked 1.8%, 1.8%, 3%, 1.5%, 1.4%, 1.3%, 1.1% and 1.8%, respectively.
The fear-gauge CBOE Volatility Index (VIX) was up 12.1% to 18.94. A total of 10.2 billion shares were traded on Tuesday, inline with the last 20-session average. Decliners outnumbered advancers on the NYSE by a 5.9-to-1 ratio. On Nasdaq, a 2.1-to-1 ratio favored declining issues.
Weak Economic Data
The Conference Board reported that the index for consumer confidence in September came in at 103, missing the consensus estimate of 105.5. The metric for August was revised upward to 108.7 from 106.1 reported earlier. September marked the second consecutive month of index’s decline and the largest monthly decline for the index since December 2020.
The Present Situation Index—based on consumers’ assessment of current business and labor market conditions—rose marginally to 147.1 in September from 146.7 in August. The Expectations Index—based on consumers’ short-term outlook for income, business, and labor market conditions—declined to 73.7 in September, after falling to 83.3 in August. Notably, any reading of the Expectations Index below 80, historically signals a recession within the next year.
According to Dana Peterson, the chief economist at The Conference Board, “Expectations for the next six months tumbled back below the recession threshold of 80, reflecting less confidence about future business conditions, job availability, and incomes."
Peterson also said, "Consumers may be hearing more bad news about corporate earnings, while job openings are narrowing, and interest rates continue to rise — making big-ticket items more expensive."
The Department of Commerce reported that new single-family home sales in August came in at 675,000 units, lagging the consensus estimate of 701,000 units. July’s data was revised upward to 739,000 units from 714,000 units reported earlier.
The S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index, covering all nine U.S. census divisions, reported 1.0% annual change in July, up from a 0% change in the previous month.
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Stock Market News for Sep 27, 2023
U.S. stock markets fell sharply lower on Tuesday following the release of several weak economic data. Market participants remained highly concerned that the Fed’s decision of pursuing higher interest rate for longer period may result in economic downturn in near future. All three major stock indexes ended in negative territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) tumbled 1.1% or 388 points to close at 33,618.88. Notably, 28 components of the 30-stock index ended in negative territory, while 12 ended in positive territory. At its intraday low, the blue-chip index was down more than 183 points.
The tech-heavy Nasdaq Composite finished at 13,063.61, plunging 1.6% due to weak performance of large-cap technology stocks. The major loser of the index was Cintas Corp. (CTAS - Free Report) . Shares of the company plummeted 5.3%. Cintas currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The S&P 500 plummeted 1.5% to end at 4,273.53. The broad-market closed below its crucial support base of 4,300 for the first time since Jun 9. Moreover, the index fell below the key support base of 100-day moving average on Sep 21 for the first time since March and continued to trade there. This indicates possibility of more decline for the index.
All 11 broad sectors of the benchmark ended in negative territory. The Consumer Discretionary Select Sector SPDR (XLY), the Technology Select Sector SPDR (XLK), the Utilities Select Sector SPDR (XLU), the Industrials Select Sector SPDR (XLI), the Materials Select Sector SPDR (XLB), the Financials Select Sector SPDR (XLF), the Communication Services Select Sector SPDR (XLC) and the Health Care Select Sector SPDR (XLV) tanked 1.8%, 1.8%, 3%, 1.5%, 1.4%, 1.3%, 1.1% and 1.8%, respectively.
The fear-gauge CBOE Volatility Index (VIX) was up 12.1% to 18.94. A total of 10.2 billion shares were traded on Tuesday, inline with the last 20-session average. Decliners outnumbered advancers on the NYSE by a 5.9-to-1 ratio. On Nasdaq, a 2.1-to-1 ratio favored declining issues.
Weak Economic Data
The Conference Board reported that the index for consumer confidence in September came in at 103, missing the consensus estimate of 105.5. The metric for August was revised upward to 108.7 from 106.1 reported earlier. September marked the second consecutive month of index’s decline and the largest monthly decline for the index since December 2020.
The Present Situation Index—based on consumers’ assessment of current business and labor market conditions—rose marginally to 147.1 in September from 146.7 in August. The Expectations Index—based on consumers’ short-term outlook for income, business, and labor market conditions—declined to 73.7 in September, after falling to 83.3 in August. Notably, any reading of the Expectations Index below 80, historically signals a recession within the next year.
According to Dana Peterson, the chief economist at The Conference Board, “Expectations for the next six months tumbled back below the recession threshold of 80, reflecting less confidence about future business conditions, job availability, and incomes."
Peterson also said, "Consumers may be hearing more bad news about corporate earnings, while job openings are narrowing, and interest rates continue to rise — making big-ticket items more expensive."
The Department of Commerce reported that new single-family home sales in August came in at 675,000 units, lagging the consensus estimate of 701,000 units. July’s data was revised upward to 739,000 units from 714,000 units reported earlier.
The S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index, covering all nine U.S. census divisions, reported 1.0% annual change in July, up from a 0% change in the previous month.