Stocks accelerated losses throughout Wednesday's session as all three major indices had their worst day in two weeks. Mega-cap tech stocks--the major market driver since the beginning of the coronavirus pandemic--declined, dragging down the rest of the market as sentiment soured towards future growth amid further economic stimulus and virus concerns.
On Wednesday, Federal Reserve Chairman Jerome Powell told Congress that further fiscal stimulus will be needed for U.S. economic recovery amid the coronavirus crisis. Lawmakers have struggled to pass a new fiscal package since the passage of the CARES Act, despite previous pandemic protections expiring.
FAANGM stocks--Facebook
Meanwhile, IHS Markit's preliminary monthly purchasing managers' index (PMI) for manufacturing and services sectors showed steady activity in September over August. Manufacturing PMI matched consensus expectations by increasing to 53.5 from August's 53.1. Services PMI fell slightly to 54.6 from August's 55.0, falling slightly below consensus. However, readings above the neutral level of 50 indicate expansion for the sector.
"The question now turns to whether the economy's strong performance can be sustained into the fourth quarter," said Chris Williamson, chief business economist for IHS Markit, in a a statement. "COVID-19 infection rates remain a major concern and social distancing measures continue to act as a dampener on the overall pace of expansion, notable in consumer-facing series. Uncertainty regarding the presidential election has also intensified, cooling business optimism about the year ahead. Risks therefore seem tilted to the downside for the coming months, as businesses await clarity with respond to both the path of the pandemic and the election."
Here's how the market settled for the mid-week:
S&P 500 Index
Dow Jones Industrial Average
Nasdaq Composite Index
For Major Stock News, Nike
For Sector Performance, every industry fell alongside the broader market. The negative sector performance was as follows: Energy -4.55%, Information Technology -3.21%, Materials -2.93%, Real Estate -2.91%, Communication Services -2.68%, Consumer Discretionary -2.24%, Financials -2.19%, Industrials -1.76%, Utilities -1.61%, Consumer Staples -1.56%, and Health Care -1.08%.
For Commodities and Currency, the U.S. Dollar
For Thursday, investors will focus on the U.S. Labor Department's weekly jobless claims set to debut. Wall Street consensus estimates unemployment claims to total 850,000 for the week ended Sept.19.