Stock Market News for Sep 8, 2021
U.S. stock markets closed mostly lower on Tuesday as investors remained concerned about the impact of the Delta variant of COVID-19 on the economic re...
U.S. stock markets closed mostly lower on Tuesday as investors remained concerned about the impact of the Delta variant of COVID-19 on the economic recovery. However, technology shares boosted the Nasdaq Composite to yet another record closing high. The Dow and S&P 500 closed the day in red while the Nasdaq Composite ended the day in green.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) fell 0.8%, or 269.09 points, closing at 35,100.00, continuing its losses from Friday. Notably, 25 components of the 30-stock index ended in red while 5 finished the day in green.
The tech-heavy Nasdaq Composite closed the day at 15,374.33, up 0.1%, a new record high and continuing its winning streak from previous sessions, on the back of strong performance by large-cap technology stocks. The S&P 500 fell 0.3%, closing the day at 4,520.03, maintaining its two-day losing streak. The Industrials Select Sector SPDR (XLI) and the Utilities Select Sector SPDR (XLU) fell 1.7% and 1.3%, respectively. Eight out of eleven sectors of the benchmark index closed in the negative zone and three closed in the green.
The fear-gauge CBOE Volatility Index (VIX) was up 10.5% to 18.14. A total of 9.2 billion shares were traded on Tuesday, higher than the last 20-session average of 9 billion. Decliners outnumbered advancers on the NYSE by a 2.27-to-1 ratio. On Nasdaq, a 1.65-to-1 ratio favored declining issues.
Delta Variant Concerns Weighed on Investors’ Sentiment
The Dow and the S&P 500 declined on Tuesday to begin the holiday-shortened week as investors remained concerned about the Delta variant of the coronavirus and in turn, about the potential slowdown of economic recovery.
Consequently, shares of industrial companies, which are sensitive to economic recovery, edged lower on Tuesday. Shares of major industrials like Deere & Co. DE and Caterpillar Inc. CAT fell 4.5% and 1%, respectively. Deere carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Technology Shares Moved Higher
Technology shares boosted the Nasdaq Composite in Tuesday’s session, moving the benchmark index to yet another record closing high. Investors continued to favor technology companies as uncertainties persist with regard to economic recovery, which could possibly lead the U.S. Federal Reserve in delaying its timetable for lifting the “accommodative” stance of monetary policy and its $120 billion monthly bond buying program.
In any case, the Fed Chair Jerome Powell has assured that interest rate hikes are still at a distance, which should provide a boost to technology companies which tend to benefit from low interest rates.
Stocks That Made Headline
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Apple Inc. (AAPL): Free Stock Analysis Report
Caterpillar Inc. (CAT): Free Stock Analysis Report
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