September 30, 2022

S&P 500 falls for fourth day, putting summer market comeback in doubt

S&P 500 falls for fourth day, putting summer market comeback in doubt

Stocks fell on Wednesday as Wall Street struggled to snap up a three-day losing streak that ended August well.

The Dow Jones Industrial Average fell 92 points, or 0.3%. The S&P 500 and Nasdaq Composite indices also lost about 0.3% each. All major averages are on track to end the month low.

Markets have seen heavy selling since Friday after hawkish comments from Federal Reserve Chairman Jerome Powell. Recently, Loretta Meester, president of the Federal Reserve Bank of Cleveland, said she sees benchmark interest rates Above 4% by early next yearNew York Federal Reserve Bank President John Williams called forSomewhat restrictive policy to slow down the request.

However, some investors are hoping the Fed will become less hawkish, and that that will support a strong approach to the fourth quarter for stocks.

“Definitely not prudent, but less hawkish,” Kevin Mahn, chief investment officer at Hennion & Walsh Asset Management, told CNBC’s “Squawk Box” on Wednesday. “75 basis points rate — everything is in place for September. It doesn’t mean October and I think they will come back in November and December and only increase 25 basis points in each of those two meetings.”

The sell-off began on Wall Street on Tuesday, with the Dow Jones Industrial Average down nearly 1%. The Nasdaq Composite Index is down 1.1%, and the S&P 500 Index is down 1.1%, falling below the 4,000 level for the first time since late July. They were all major averages On its way to end August with losses.

“This volatility is really healthy and constructive,” Jeff Kelberg, chief investment officer at Sanctuary Wealth, told CNBC. “I am not complacent, and the speed with which the Fed has injected into this de-risking has caught the breath of a lot of investors but … there are a lot of signs that seem more optimistic than negative” – such as rising Treasury yields, he said.

“For the market to go from 3600 to 4300 in 19 trading sessions, this is not sustainable,” he added. “Seeing the market come back and the S&P 500 fill volume around 4,000 is really constructive and allows us to have a foundation that takes another step higher with the backdrop of a better-than-expected earnings season and consumer sentiment slowly rising.”