The S&P 500 fell as chipmakers were dented by ratings downgrades and utilities declined before an expected Fed rate of interest hike, offsetting a good start within the energy sector.
S&P 500 financials, including interest-rate-sensitive bank stocks, dipped 0.38% prior to the expected improvement in interest rates via the Fed on Wednesday. Utilities, which usually are favoured in low-rate environments because of their solid dividend payments, slid 1.22%
The S&P 500 energy index added 0.57% as Brent oil hit a four-year high, boosted by imminent US sanctions on Iranian exports, and Opec and Russia’s desire not to raise output.
US consumer confidence unexpectedly rose in September, bringing it nearer to levels last noticed in 2000, the Conference Board said, underscoring strength from the labor market and the overall economy.
The data pushed the S&P 500 consumer discretionary index up 0.59%.
“Almost all of the noise around trade and everthing else around politics really hasn’t suppressed consumer confidence nearly to the degree that the additional factors have boosted it,” said Mike Dowdall, investment strategist for BMO Global Asset Management, in Chicago.
The Philadelphia semiconductor index dropped 1.70%, weighing over the S&P 500 technology index, after brokerages Raymond James and KeyBanc cut their ratings at a range of chipmakers. Intel fell 2.13% after Raymond James downgraded the stock.
Buoyed by strong economic growth and deep corporate tax cuts, the S&P 500 has gained 9% at this point in 2018. But five with the S&P 500 sector indexes are down year thus far, such as the consumer staples index, down 5.6%. Consumer staples lost 0.73%. Other six are higher, led from the technology index’s 19% rally.
“There are actually different stories many different sectors, it’s a finicky little market,” said Dennis Dick, a proprietary trader at Bright Trading. “If you’re a money manager, you have to be cautious by what you’re buying.”
The Dow Jones Industrial Average fell 0.26% to stop at 26 492.21 points, and the S&P 500 lost 0.13% to two 915.56.
The Nasdaq Composite rose 0.18% to eight 007.47. Amazon provided the maximum lift to the technology-heavy index, jumping 2.08%.
In extended trade, Nike fell 2.89% after it reported quarterly results.
CenturyLink tumbled 8% after chief financial officer Sunit Patel left the firm within a surprise move to join T-Mobile to supervise its integration with Sprint. T-Mobile rose 0.77% and Sprint added 0.31%.
Declining issues outnumbered advancing ones over the NYSE by way of 1.20-to-1 ratio; on Nasdaq, a.00-to-1 ratio favored advancers.
The S&P 500 posted 31 new 52-week highs and 10 new lows; the Nasdaq Composite recorded 65 new highs and 54 new lows.
Volume upon us exchanges was 6.6 billion shares, slightly below the 6.7 billion average over the last 20 trading days.?