S&P 500 and Nasdaq Register Strong Gains in September and Third Quarter

Barry Adams
30 Sep, 2024
New York City

Stocks struggled to advance in Monday's trading, and benchmark indexes are set to close higher for the month and for the quarter. 

The S&P 500 index decreased 0.2% and the Nasdaq dropped as much as 0.3% in early trading in New York as investors debated future rate paths and economic outlook. 

The S&P 500 index increased 1.6% in September and jumped 5.1% in the quarter, and the Nasdaq added 2.3% and advanced 2.2%, respectively. 

Two widely followed benchmark indexes advanced in previous consecutive weeks, supported by the Fed's super-sized rate cut and better-than-expected economic data indicating resilient consumer demand and moderating but strong labor market conditions. 

Investor anxieties rose after port workers at 14 major ports on the East Coast and along the Gulf Coast are set to strike at midnight Monday, potentially disrupting supplies for days or weeks.

The International Longshoremen's Association said in a post that workers plan to strike at 12:01 E.T. on Tuesday, after the master contract with the U.S. Maritime Alliance expires. 

 

U.S. Indexes and Treasury Yields

The S&P 500 index decreased 0.2% to 5,727.03, the Nasdaq Composite fell 0.2% to 18,078.59, and the Russell 2000 index rose 0.3% to 2,230.26. 

The yield on 2-year Treasury notes edged higher to 3.63%, 10-year Treasury notes inched up to 3.75%, and 30-year Treasury bonds inched higher to 4.13%.

WTI crude oil decreased $0.15 to $67.99 a barrel, and natural gas prices edged down 1 cent to $2.90 a thermal unit.

Gold fell by $19.98 to $2,638.47 an ounce, and silver decreased by $0.45 to $31.16.

The dollar index, which weighs the US currency against a basket of foreign currencies, edged higher to 100.43.

 

U.S. Stock Movers

AT&T edged up 0.3% to $21.95 after the company said it has agreed to sell its 70% stake in satellite TV company DirectTV Entertainment Holding LLC to a private equity firm TPG for about $7.6 billion in cash payments stretching to 2029. 

AT&T will receive $1.7 billion in cash at the time of completion of the deal, $5.4 billion in payment in 2025, and $500 million in 2029. 

DirectTV also said in a separate statement it has agreed to buy Sling TV and Dish TV from EchoStar through debt exchange, culminating in a combination of two satellite TV companies. 

In addition, Direct TV will acquire Dish TV's video distribution business for $1 and assume a net debt of $9.75 billion. 

Stellantis declined 13% to $13.96 after the parent company of Jeep and Fiat lowered its annual outlook, citing sales weakness in "most regions."

Volkswagen AG dropped 2.2% to $11.13 after the German automaker issued its second profit warning in three months, citing ongoing weakness in China. 

Nio Inc. advanced 13.5% to $7.43 after the electric vehicle maker said its China-based subsidiary will receive a total of 13.3 billion yuan of investment, including 3.3 billion from a "strategic investor." 

After the investment, Nio Inc.'s stake in Nio China increased to 88.3% from 92.1%. 

Alibaba Group increased 4.4% to $111.93 following a surge in tech stocks in Hong Kong and mainland China in the hopes that Beijing will soon announce fiscal measures following a package of monetary stimulus by the People's Bank of China. 

Other China-linked stocks traded higher after three cities in China lowered down payment requirements and eased other restrictions for residential properties. 

JD.com increased 5.5% to $42.07, and Tencent Holdings fell 0.3% to $56.88.