The Dow New York Stock Exchange ended lower last night (Sept. 30) as investors worried that controversy in Congress over raising the U.S. government’s debt ceiling was fading. This could result in the US defaulting on its debts for the first time in history. The concerns resulted in a wide sell-off in a wide range of stocks, especially industrial stocks that plunged sharply.
The Dow Jones Industrial Average closed at 33,843.92, down 546.80, or -1.59%. The S&P 500 closed at 4,307.54, down 51.92, or -1.19%. The Nasdaq closed at 14,448.58, down -63.86, or -0.44.
All three major indices hit record lows in September. This has been negative factors from the Federal Reserve (Fed) tends to cut the limit on the quantitative easing (QE) bond purchase program and raise interest rates faster than expected, controversy in Congress over the Increase US debt ceiling, Congress may approve corporate income tax hikes including concerns about inflation. and the risks from the spread of the COVID-19 virus Delta species
Throughout the month of Sept. The Dow fell 4.3 percent, the S&P 500 slid 4.8 percent and the Nasdaq slid 5.3 percent, making September 21 the Nasdaq’s worst month in ten years. The Dow was down 1.9%, the S&P500 was up 0.2% and the Nasdaq was up 0.4%.
Although the US House of Representatives passed a bill to suspend the debt ceiling of the US government on Wednesday past. But investors worry the bill would be thwarted by Republican members in the Senate. Meanwhile, US Treasury Secretary Janet Yellen warned that Congress has less than three weeks to consider extending the debt ceiling. If Congress fails to do so This will result in the US facing default for the first time in its history. and will have a severe impact on the country’s economy
The 11 stocks calculated in the S&P500 index all fell. Industry indexes were down 2.11 percent, with Boeing down 2.41%, General Electric (GE) down 3.06 percent, Raytheon Technologies down 1.18. Caterpillar shares were down 2.98%, while 3M shares were down 3.02%.
Stocks sensitive to economic trends, such as energy and banking stocks, tumbled last night. Exxon Mobil fell 1.77 percent, Chevron was down 1.82 percent, Halliburton was down 2.44 percent, Bank of America was down 1.44 percent, JPMorgan was down 1.36 percent, and Goldman Z was down 1.36 percent. The Ksks fell 1.78%.
For the latest US economic data released last night. The U.S. Commerce Department released its third estimate for 2Q21 gross domestic product (GDP), showing the U.S. economy grew 6.7 percent in the second quarter, above the first estimate of 6.5 percent. That was higher than the second estimate of 6.6%, after expanding 6.3% in the first quarter.
The Labor Department said initial claims for unemployment benefits rose 11,000 to 362,000 last week. The number of applicants for unemployment benefits last week hit the highest level since Aug. 7 and rose for the third week in a row, indicating that employment in the US has slowed
Other economic data scheduled to be released today include: Personal Income and Expenditure Aug, Personal Consumption Expenditure (PCE) Price Index (PCE) Aug, Purchasing Managers Index (PMI) Final Manufacturing Sector Sept. from Markit, the September Manufacturing Index from the US Institute of Supply Management (ISM) and the September Consumer Confidence Index from the University of Michigan.
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