After rising for three consecutive trading weeks, the S&P 500 started this week on a mixed note. On September 25, six out of the 11 major sectors closed the day with gains. Weakness in the healthcare and IT sectors pushed the market lower. On the other hand, strength in the energy and telecom services sectors limited the market’s losses.
The S&P 500 rose to record high price levels in the first three trading days last week. As widely expected by the market, the Fed hinted about one more interest rate hike and announced plans to reduce its $4.5 trillion balance sheet. Last week, Wall Street closed with an improved sentiment. However, the risk appetite fell over the weekend and resulted in the poor start this week. Increased concerns about North Korea, the technology sell-off, and Germany’s elections decreased the market’s risk appetite. The market is looking forward to FOMC member Mester’s speech at 10:30 AM EST on September 26.
On September 25, the S&P 500 opened the day lower, fell to two-week low levels, recovered, and closed the day with limited losses. The CBOE Volatility Index (or VIX) measures uncertainty in the market. On September 25, it rose 6.5% to 10.21. The VIX is measured on a scale of one to 100 with 20 as the historical average. The VIX is also called the “fear index.” It usually has an inverse relationship with stocks and rises when the S&P 500 falls.
NASDAQ and Dow
Similar to the S&P 500, the NASDAQ Composite Index and Dow started the week lower. Amid weakness in the IT sector, the tech-heavy NASDAQ Composite Index closed the day at 6,370.59 with a loss of 0.88%. The Dow Jones Industrial Average fell 0.24% and closed at 22,296.09.
In the next part, we’ll discuss the S&P 500’s top gainers on September 25.