The US stock market ended the month of August lower amid growing fears of a global recession. What is interesting to note is the emerging new trend in the market. US stock markets are still struggling to find stability and direction. Although U.S. stock markets started the week with some early success on Monday and Tuesday, they gave up those gains and ended the day lower on both days. This trend looked set to continue this morning as the indices opened firmly higher only to turn negative an hour later. US stock market updateUS stock market update.
The S&P 500, Nasdaq Composite, and Dow 30 closed down 4.82%, 6.73%, and 3.97%, respectively, over the past month. The S&P 500 is now down nearly 8% from its recent highs of August 16.
U.S. stocks fell on Wednesday, hitting their lowest levels in a week and failing to hold on to early gains for the third week in a row. Some of the weaker sectors were apparel, housing related retail, electrical, aerospace, manufacturing, industrial metals and chemicals. Outperformers included Media & Entertainment, Food, Investment Banks, Stocks, Software, Internet and Chinese Internet Companies. Although META and NFLX posted significant gains, FANMAG was mixed.
Markets around the world remained volatile due to growing fears of a global recession. The Fed’s Powell has already warned of more pain for the economy as a result of rate hikes to tame inflation. Investor sentiment was dampened by growing concerns about a slowdown in global growth in the context of tightening financial conditions.
Stocks tend to underperform in September, as shown by past stock market data. Going forward, it remains to be seen how the US CPI numbers will come in for the month of August and how much the Fed will raise rates at its September FOMC meeting. Today Best US stock market update.
The true impact of rate hikes on the economy may still be several quarters away, and until then stock market volatility may be high. Today US stock market update.