Stock market today
The US stock market closed lower today as earnings season is ready to kick in and oil prices continue to rise. Higher oil prices intensify inflationary pressures and this can make Fed taper its bond-buying program soon, signaling the gradual rise of interest rates. The closing numbers for the US stock market today are:
S&P 500: 4,361.19,-30.15(-0.69%)
Dow 30: 34,496.06,-250.19(-0.72%)
Russell 2000: 2,223.24,-9.85(-0.44%)
Stock market news
“Stocks ended lower on Monday as investors mulled ongoing signs of inflation and supply-related challenges and awaited more data on corporate earnings.
The S&P 500, Dow and Nasdaq dropped to erase earlier gains. Treasury yields advanced across the curve, and the benchmark 10-year yield hovered around 1.61%, or its highest level since June.
U.S. West Texas intermediate crude oil futures extended gains after logging a seventh straight weekly advance, jumping to top $82 per barrel at session highs and add to concerns over rising energy, commodity and input prices. WTI crude futures reached highest level since 2014, while Brent crude was at its highest since 2018 after topping $84 per barrel.
Stocks have traded choppily over the past several weeks as investors contemplated the equity market implications of ongoing price increases against a backdrop of decelerating economic growth. Elevated demand and supply-side shortages have pushed up the prices of commodities from oil and natural gas to cotton, and labor shortages have raised the specter of lasting increases in wages and higher costs to employers. Last week’s September jobs report “had an inflationary feel with strong wage growth, a rise in the workweek, and a drop in [labor force] participation,” Neil Dutta, head of U.S. economics at Renaissance Macro Research, wrote in an email last week.
This week, investors will receive the Bureau of Labor Statistics’ latest Consumer Price Index and Producer Price Index, each for September. Increases in core consumer prices, excluding food and energy, are expected to remain elevated on a historical basis, coming in just slightly below June’s 30-year high in price increases. Producer prices, meanwhile, are expected to have accelerated further last month.
“‘Stagflation’ was the most common word in client conversations this week as equity market volatility remained elevated,” David Kostin, Goldman Sachs chief U.S. equity strategist, wrote in a note Monday morning. “Stagflation is not our economists’ base case expectation, but the weak historical performance of equities in stagflationary environments helps explain why investors are concerned.”