Worst Stock Market Month in the US Since the Collapse of the Crown – E24

Good job numbers, strong house numbers, and hope that the crown crisis will help – these were three of the ingredients when solid momentum from the US stock market boiled over on the last day of the month.

But the good news about the tampen didn’t stop September from becoming the worst month in the US stock market since March, when the corona pandemic caused country after country to pull on the emergency brake, prompting a free fall in world markets.

Here’s the red September celebration for America:

• The Dow Jones is down 3.02 percent
• The S&P 500 weakened 4.65 percent
• And the heavy-tech Nasdaq is down 6.47 percent

Help for the crown crisis

After a bitter market push in the run-up to Tuesday’s political mud bath between Joe Biden and Donald Trump, Wednesday’s arrows were clearly pointing to both the Dow Jones (+1.20), S&P 500 (+0.82). as well as the Nasdaq (+0, 74).

US Treasury Secretary Steven Mnuchin can probably take some of the credit, as early Wednesday he gave positive signals about the possibility of finalizing a long-awaited crown crisis package for businesses after several weeks. footsteps in the US Congress

“We will give this another serious try, and we are hopeful that we can achieve something,” Mnuchin said during an investor conference, according to CNBC.

– I think there is a reasonable compromise here, he added.

The fact that a crisis package exists is important to businesses, as the virus continues to ravage the United States, and ensures that parts of the economy will continue to be shut down in the future, explains investment manager Andrea Roemhildt at Aware Asset Management.

– Markets are sitting waiting for a sign that this will come true, he tells Bloomberg.

The number of positions exceeds expectations

And they’ll probably have to wait longer: Before the stock market closed at 10 p.m., a 90-minute meeting between Mnuchin and Nancy Pelosi ended without an agreement on a crisis package.

Investors reacted immediately by eliminating much of Wednesday’s rise, but optimism returned in the closing minutes of trading. According to various US media, there is still hope that a crisis package will be put in place, while talks continue.

New housing and labor market figures also contributed positively on Wednesday.

ADP’s monthly report showed 749,000 new jobs in the private sector in September, significantly more than expected.

The consensus estimate of economists was 600,000 new jobs, according to a Dow Jones survey.

Stock market rocket after listing

New home sales figures from the US brokerage industry also came as a positive surprise, with completed sales contracts growing at a record 8.8 percent from July to August. The number of sales is also 24.2% higher than in August last year.

Extraordinarily low home rents are cited as an explanation for the increase in sales.

Among sole proprietorships, the newcomer Palantir jumped 31.79 percent. The software company was established by former Facebook investor and board member Peter Thiel.

Duke Energy jumped 7.5 after the Wall Street Journal announced that the company is a possible candidate for the acquisition of its competitor NextEra Energy.

Disney, meanwhile, fell more than 1 percent after the company announced Tuesday that it was shedding 28,000 employees.