The S&P 500 and the 30-stock Dow Jones came out of their fourth consecutive negative week, losing 0.6% and 1.8% respectively. This is the first time since August 2019 that the two benchmarks have suffered a four-week losing streak.
The tech-heavy Nasdaq posted a 1% gain last week, posting its first positive week in four as the tech sector rebounded slightly from the recent deep rout.
Signs of a worsening pandemic continue to keep investors on the lookout. Daily new coronavirus cases topped 1,000 in New York state on Saturday, marking the first time that new infections in the state have crossed the 1,000 threshold since early June.
Major averages are on track to post large losses for September, a historically weak month for stocks. The Dow and S&P 500 fell 4.4% and 5.8% respectively, while the Nasdaq fell 7.3%. The declines follow a massive comeback in coronavirus selling that saw the S&P 500 climb more than 50% from its March low.
“When the markets hit the extremes that we saw a month ago, it tends to take a very deep correction before the worst is behind us,” said Matthew Maley, chief market strategist at Miller Tabak on Sunday. . “He also usually sees several ‘waves’ of decline. ”
Investors continue to monitor developments regarding further fiscal stimulus after negotiations between House Democrats and the Trump administration broke down in early August.
House Speaker Nancy Pelosi said on Sunday a last-minute coronavirus aid deal remains on the table as House Democrats try to move forward with an aid package smaller costing around $ 2.4 trillion. The chamber could vote on the bill as early as next week.
At the same time, on Saturday, President Donald Trump announced that he would appoint Justice Amy Coney Barrett to fill the post left vacant by the death of Justice Ruth Bader Ginsburg on the Supreme Court.
The movement sets up a confirmation fight a few weeks before election day. Hearings to consider Trump’s candidate are scheduled to begin Oct.12, Senator Lindsey Graham said on Saturday evening.
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