Stock market today
A 5th day of losses for the US stock market today. All major stock indexes fell more than 0.70%. The closing numbers for the US stock market today follow:
S&P 500: 4,458.58,-34.70 (-0.77%)
Dow 30: 34,607.72,-271.66 (-0.78%)
Nasdaq: 15,115.49,-132.76 (-0.87%)
Russell 2000: 2,229.65,-19.48 (-0.87%)
Stock market news
“Stocks on Friday appeared to extend their losing streak to a fifth day, with investors growing more cautious about the COVID-19 pandemic’s impact on the economy.
President Joe Biden spoke with Chinese President Xi Jinping for the first time in months, provided modest comfort to investors early in the session. While little progress was made, the call highlighted how the world’s two largest economies — which have a raft of differences on critical policy issues between them to work out — are still keeping the lines of communication open.
However, after Bloomberg reported that the Biden administration may investigate Chinese subsidies — and their impact on the U.S. economy — stocks reversed early gains. The Dow shed over 200 points, while S&P 500 Index capped its worst streak since a 5-day slide that ended on February 22.
“The Sino-American relationship is in disrepair, and today’s call does not seem to change this,” noted Marc Chandler, chief market strategist at Bannockburn Global Forex, in a morning note he entitled “frenemies talk, but progress elusive.”
He added: “The US appears to list actions it wants China to take, while China’s demands seem minimalist: Quit demonizing it and respect its red lines. Yet its red lines strike at the very heart of the international order, such as its claims on most of the South China Sea and its aggressive provocative actions in the region,” Chandler added.
Meanwhile, data on Friday showed that prices paid by producers surged last month, as supply and labor strains exerted more inflationary pressure on the economy — showing how demand remains white hot and resilient, even in the face of COVID-19. The producer price index jumped by 0.7% last month, and skyrocketed by 8.3% through August, the biggest year-on-year advance since November 2010, after surging 7.8% in July.
“At first blush it could raise some eyebrows that the market would shrug off the biggest producer price increase ever recorded, yet context is key,” said Mike Loewengart, managing director of investment strategy at E*TRADE Financial.”