The S&P and the Dow posted their third consecutive weekly declines, and all three indices posted their second consecutive monthly losses.
In the first nine months of 2022, Wall Street suffered three quarterly declines in a row, the longest losing streak for the S&P and the Nasdaq since 2008 and the Dow’s longest quarterly decline in seven years.
Data showed the core personal consumption expenditures price index rose 0.6% after being unchanged in July. It rose 4.9% year-on-year in August after rising 4.7% in July.
“What we need to see is a decline in inflation on a sequential basis and we’re just not seeing that yet.”said Art Hogan, chief market strategist at B. Riley Wealth.
Fed rate futures showed that traders see a probability of almost 68% chance that the central bank will raise rates by 75 basis points at its November meeting, down from 61% before the inflation data.
The aggressive stance of the Fed on the cost of credit has pushed all three major indices into a bear market and put them in their third straight quarterly decline.
In this context, the Dow Jones Industrial Average was headed for its worst month since the pandemic lows. The S&P 500 has fallen 8.2% so far in September, testing its lowest level since November 2020, Meanwhile he Nasdaq has lost more than 9% for the month.
Among the 11 major sector indices of the S&P 500, consumer discretionary were the most affected, due to the 10.64% drop in Nike Inc.
Source: Ambito
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