原文標題：
Dow sheds 500 points amid growing risks, on pace for its worst sell-off since
July
原文連結：
https://www.cnbc.com/2021/09/19/stock-market-futures-open-to-close-news.html
發布時間：
PUBLISHED SUN, SEP 19 20216:02 PM EDT
原文內容：
U.S. stocks began the week deeply in the red as investors continued to move
to the sidelines in September amid several emerging risks for the market.
The Dow Jones Industrial average lost 500 points, or 1.4%, set for its
biggest one day drop since July 19. The blue-chip Dow pared back some of the
losses soon after the open when it dropped nearly 600 points. The S&P 500
fell 1.5%. The tech-heavy Nasdaq Composite dropped 1.8%.
There were a number of reasons for the sell-off:
-Investors fear a contagion sweeping financial markets from the troubled China
property market. Hong Kong equities saw a big sell-off during the Asia
trading session on Monday. The benchmark Hang Seng index plunged 4% with
embattled developer China Evergrande Group on the brink of default.
-The Federal Reserve begins a two-day meeting Tuesday and investors are
worried the central bank will signal it’s ready to start pulling away
monetary stimulus amid surging inflation and improvement in the job market.
-Covid cases because of the delta variant remain at January levels as colder
weather approaches in North America.
-September has the worst track record of any month, averaging a 0.4% decline,
according to the Stock Trader’s Almanac. History shows the selling tends to
pick up in the back half of the month.
-Investors are also concerned about brinkmanship in DC as the deadline to
raise the debt ceiling approaches. Congress returned to Washington from
recess rushing to pass funding bills to avoid a government shutdown.
Stocks linked to global growth were down the most Monday. Ford and Carrier
Global lost more than 3%. General Motors and Boeing fell about 2% each. Nucor
steel shed 2.8%
Energy stocks tumbled as WTI crude oil fell 2% on concerns about the global
economy. Occidental Petroleum, Hess and Devon Energy were among the biggest
losers.
Bond prices gained as investors sought safety. The move pushed the 10-year
Treasury yield down by 5 basis points to 1.325%.
Big bank stocks took a hit as the falling rates may crimp profits. Bank of
America and JPMorgan Chase were each down more than 2%.
“We think the mid-cycle transition will end with the rolling correction
finally hitting the S&P 500,” wrote Mike Wilson, Morgan Stanley’s chief
U.S. equity strategist. “We point to downside risk to earnings revisions,
consumer confidence and PMIs.”
Wilson said he believes a “destructive outcome” is looking more likely that
results in a pullback of 20% or more. On Friday, University of Michigan’s
September consumer sentiment index came in at 71, just slightly above the
August level that was the lowest in 9 years.
The Cboe Volatility index, Wall Street’s fear gauge, jumped above the 26
level on Monday, the highest since May.
“We are in an information vacuum at the moment,” said Jamie Cox, managing
partner at Harris Financial Group. “Stalemates in Congress on the debt
ceiling, worries on policy changes or mistakes in monetary policy, and a
litany of proposed tax increases have dampened the mood for investors. When
this occurs, corrections happen.”
Amid Monday’s sell-off, a number of classic defensive stocks provided the
broader market with some support. Walmart, Procter & Gamble and Merck all
traded in the green. Pfizer rose 1.5% after the drugmaker said its Covid
vaccine is safe and appears to generate a robust immune response in kids ages
5 to 11.
Meanwhile, airline stocks jumped higher in unison after news that the U.S.
will ease travel restrictions for foreign visitors who are vaccinated against
Covid. American Airlines rose 2%, while United and Delta both traded about 1%
higher.
Stocks have struggled so far in September in line with historical trends. For
the month, the Dow is off 3.3%. The S&P 500 is lower by 3.2% and the Nasdaq
Composite is lower by 2.9%.
On Friday, the Dow Jones Industrial Average turned in three straight weeks of
losses for the first time since September 2020. The S&P 500 saw its biggest
trading volume Friday since July 19, more than doubling its 30-day average
volume.
Friday coincided with the expiration of stock options, index options, stock
futures and index futures — a quarterly event known as “quadruple witching.
” History shows volatility tends to pick up around this event.
Fed Chair Jerome Powell will hold a press conference Wednesday at the
conclusion of the two-day meeting. Powell has said the so-called tapering
could occur this year, but investors are waiting for more specifics,
particularly after mixed economic data released since Powell’s last comments.
Some investors believe this is just normal market action that can occur in
September.
“The reasons for drop this morning are the same as last week: China concerns
(Evergrande, regulation, COVID), Fed tapering and possible tax hikes, but
nothing new occurred this weekend to justify this mornings’ declines,” Tom
Essaye, founder of Sevens Report, said in a note.
Other risky assets declined on Monday. Bitcoin lost as much as 10% to below
$43,000.
Most commodities were in the red. Gold was among the few assets in the green,
adding 0.5% to $1,760.