U.S. stocks suffer their biggest monthly decline since March 2020 | Financial Markets News

Investors are paying close attention to factors such as the global energy crunch, the US debt ceiling debate, and the Fed’s plan to reduce some of the economic support related to the pandemic.

Volatility continues to disrupt financial markets, and the US stock market recorded its biggest monthly sell-off since March 2020.

Even after confirming that the House of Representatives passed a nine-week spending bill to avoid a US government shutdown, the stock market was still lower on Thursday. For traders, this is just one of a series of risks. As people are increasingly worried about slowing economic growth, rising inflation, supply chain bottlenecks, global energy tightening, and regulatory risks from China, investors are also preparing for the end of the Fed’s stimulus measures.

The political debate in Washington has the potential to push the United States into default and force President Joe Biden to reduce the spending agenda. Democratic Senator Joe Manchin hopes to cut social spending plans by more than half, to $1.5 trillion. House Speaker Nancy Pelosi is advancing a vote on the bipartisan infrastructure bill, although progressive Democrats say they have enough numbers to stop it until the Senate agrees on a broader tax and spending plan.

Tom Mantione, managing director of UBS Private Wealth Management, said: “We have not forgotten the old saying that the market climbs the wall of worry.” “Worries about China, the pandemic, debt ceiling and tax legislation are currently It’s putting pressure on investors, but it’s important to understand what issues may cause structural changes and what causes short-term volatility that investors can take advantage of.”

The S&P 500 index closed at its lowest level since July, extending its September decline to nearly 5%. Economically sensitive companies such as industry and finance performed the worst on Thursday. The decline almost erased the index’s gains this quarter.

The S&P 500 index’s near-record technical continuity has caused some bulls to worry that a major correction is already late.

Ryan Detrick, chief market strategist at LPL Financial, said: “The S&P 500 has exceeded its 200-day moving average for 317 consecutive trading days, which is one of the longest consecutive rises in history. “What we get is that, given that we have not called back for a long time, there may be a 5-7% callback at any time.”

Elsewhere, oil prices closed up nearly 10% on turbulent trading days. During this period, China is said to have ordered its top energy companies to ensure energy supplies at all costs in the event of shortages, prompting the White House to reiterate its concerns about price increases.

Here are some events worth watching this week:

• University Michigan sentiment, ISM manufacturing, U.S. construction spending, spending/personal income, Friday

Some major trends in the market:

stock

• As of 4 pm New York time, the S&P 500 Index fell 1.2%
• The Nasdaq 100 Index drops 0.4%
• The Dow Jones Industrial Average fell 1.6%
• MSCI World Index drops 0.6%

currency

• Bloomberg Dollar Spot Index fell 0.2%
• The euro fell 0.1% to 1.1581 US dollars
• British pound rose 0.4% to $1.3475
• The yen rose 0.6% to 111.29 against the dollar

Bond

• The 10-year U.S. Treasury bond yield is almost unchanged at 1.52%
• German 10-year government bond yields rose by 1 basis point to -0.20%
• U.K. 10-year government bond yields rose 3 basis points to 1.02%

commodity

• West Texas Intermediate crude oil rose 0.2% to $75.01 per barrel
• Gold futures rose 2% to $1,756.70 per ounce