SPY stumbled by 2.51% despite fair personal income and consumption data
The SPDR S&P 500 ETF (SPY) fell by 2.51% on Monday, September 28, 2015, while the Direxion Daily S&P 500 Bull 2X ETF (SPUU) fell by 4.95%. On Monday, the Commerce Department released two important economic data points for the US economy. As per the report, consumer spending in the US rose by 0.4%, more than the expected consensus of 0.3% for August 2015.
Personal income also increased by 0.3% month-over-month in August. The US economy grew at a robust annual growth rate of 3.9% in the second quarter. The chief of the Federal Reserve Bank of New York, William Dudley, reiterated that based on the performance of the US economy, the rate hike will likely happen this year regardless of global concerns. Despite the good performance of the US economy on the domestic front, the volatility in the market rose over the weekend because of uncertainty about the slowdown in emerging markets, especially China. The Volatility S&P 500 (VIX) soared by 16.98% on Monday, September 28.
The above graph illustrates the fall in oil futures, gold futures, copper futures, basic materials, and commodities as represented by their ETFs on Monday, September 28. The graph shows the price movement of the United States Oil Fund (USO), the SPDR Gold Shares ETF (GLD), the United States Copper Index (CPER), the Materials Select Sector SPDR ETF (XLB), and the Direxion Daily 20+ Yr Trsy Bear 3X ETF (TMV). Every aspect of the market was impacted by the uncertainty of US investors regarding the performance of the global economy, as developed economies are dependent on the emerging markets for trade expansion.
Worst hit stocks
The stocks that were hit the hardest were the biotech stocks Mallinckrodt (MNK) and Endo International (ENDP). These stocks fell by 12.64% and 10.20%, respectively, on September 28. Also, the oil and gas storage and transportation company stock Williams Companies (WMB) fell by 12.12% on the day.
In the rest of the series, we’ll look at the performance of other entities for the day.