Wall Street Indexes Rebound After Toughest Week In 18 Months

Barry Adams
09 Sep, 2024
New York City

U.S. stocks opened higher, and market indexes attempted to rebound from last week's steep losses. 

The S&P 500 index and the Nasdaq Composite edged up 0.9% in early trading as investors reassessed the labor market update released last week. 

In a rocky start to September trading, the S&P 500 index decreased 4.3% and the Nasdaq Composite declined 5.8% in the first week of trading. 

Investors are on edge after the economy added weaker than expected jobs for the second month in a row in August, stoking fears of an economic slowdown. 

U.S. nonfarm payrolls expanded 142,000 in August, faster than the downwardly revised 89,000 additions in July but fewer-than-expected 155,000. 

Despite the current market jitters, the U.S. economy has been adding more than 200,000 a month over the last three years, far above the long-term average monthly increase of 160,000. 

This week, investors are also looking forward to the release of consumer price inflation data on Wednesday and producer price inflation data on Thursday. 

Moreover, the European Central Bank is scheduled to announce its monetary policy decisions on Thursday, and investors are anticipating a rate cut of 25 basis points. 

The U.S. Federal Reserve is scheduled to announce its interest rate policy at the end of its two-day policy meeting on September 18. 

Investors are pinning their hopes on a rate cut of at least 25 basis points, despite the slow progress in core inflation in recent months. 

 

U.S. Indexes and Treasury Yields

The S&P 500 index increased 0.9% to 5,454.13, the Nasdaq Composite rose 1.1% to 16,874.13, and the Russell 2000 index added 0.4% to 2,100.09. 

The yield on 2-year Treasury notes edged lower to 3.69%, 10-year Treasury notes inched up to 3.73%, and 30-year Treasury bonds inched lower to 4.04%.

WTI crude oil increased $0.66 to $68.29 a barrel, and natural gas prices edged down 6 cents to $2.21 a thermal unit.

Gold rose by $15.90 to $2,502.91 an ounce, and silver increased by $0.28 to $28.22.

The dollar index, which weighs the US currency against a basket of foreign currencies, edged higher to 101.57.

 

U.S. Stock Movers

Boeing increased 3.3% to $162.86, and the company and the factory workers union agreed on wage and work rules revisions, potentially avoiding a future strike. 

Dell Technologies rose 5.4% to $107.50 and Palantir Technologies advanced 8% to $32.81 after the two companies were selected to be included in the benchmark index S&P 500 index. 

The benchmark index revision index was announced at the end of the market close on Friday. 

Big Lots declined 0.3% to $0.30, and the company agreed to sell its business to an affiliate of Nexus Capital and plans to file for bankruptcy. 

Dollar stores have been under pressure as low-income families have cut down their purchases on non-essential items, and high-income and middle-income households have increased their spending on basic items at stores owned by Walmart and Target.