Sunday, September 26, 2021

S&P 500 Snaps Losing Streak With Tax Hikes, Inflation Data On The Horizon

NEW YORK – The S&P 500 closed higher on Monday, ending a five-day losing streak as investors focused on potential corporate tax hikes and upcoming economic data.

The Dow Jones Industrial Average also advanced, but the Nasdaq Composite Index was lower.

Investors favored price on growth, with stocks set to gain the largest percentage of gains from a resurgent economy.

“There probably aren’t a lot of positive surprises coming this month,” said Liz Young, head of investment strategy at SoFi in New York. “We have another period of volatility, where I think the rotation could go cyclical and back into reopened trading, as the 10-year bond rate slowly grinds higher towards the end of the year.”

Market participants are focused on the possible passage of US President Joe Biden’s $3.5 trillion budget package, which is expected to include an increase in the proposed corporate tax rate from 21 percent to 26.5 percent.

Analysts at Goldman Sachs expect the corporate tax rate to rise to 25 percent and nearly half of the proposed increase in tax rates on foreign income, which is projected to reduce S&P 500 earnings by 5 percent in 2022. .

The Labor Department is due to release its Consumer Price Index data on Tuesday, which could shed further light on the current inflation wave and whether it is as fleeting as the Fed insists.

“I don’t think inflation has dropped below 2 percent where it was before the pandemic,” Young said. “Even if some of those transitory forces weaken, we will still remain at a higher rate than we previously thought.”

Other key indicators due out this week include retail sales and consumer sentiment, which could reveal how much of a demand surge driven by economic re-engagement has been dampened by the highly contagious COVID-19 delta variant.

Read Also:  Report: Girl was not tied up before fatal theme park collapse

The Dow Jones Industrial Average rose 261.91 points, or 0.76 percent, to 34,869.63, the S&P 500 rose 10.15 points, or 0.23 percent, to 4,468.73 and the Nasdaq Composite fell 9.91 points, or 0.07 percent, to 15,105.58.

Of the 11 key sectors in the S&P 500, healthcare suffered the biggest percentage loss, while energy, fueled by rising crude oil prices, was the biggest gainer.

Shares of vaccine makers Moderna and Pfizer Inc sank 6.6 per cent and 2.2 per cent, respectively, after experts said COVID booster shots are not widely needed.

Read Also:  WPP pays $19 million in bribery settlement with US SEC

Coinbase Global Inc. announced plans to raise approximately $1.5 billion through a loan offering aimed at funding product development and potential acquisitions. Shares on cryptocurrency exchanges fell 2.2%. Inc. is down 1.2 percent as regulatory filings from rival Freshworks Inc. indicated that the business engagement and customer engagement software company is targeting a valuation of about $9 billion in its US debut.

Advancing issues declining to a 1.60-to-1 ratio on the NYSE; On the Nasdaq, a 1.02-to-1 ratio favored advances.

The S&P 500 posted 12 new 52-week highs and a new low; The Nasdaq Composite posted 53 new highs and 71 new lows.

Volume on US exchanges was 10.30 billion shares, compared to an average of 9.29 billion over the past 20 trading days.

by Stephen Culpi


This News Originally From – The Epoch Times

S&P 500 Snaps Losing Streak With Tax Hikes, Inflation Data On The Horizon
Nation World News Desk
Nation World News is the fastest emerging news website covering all the latest news, world’s top stories, science news entertainment sports cricket’s latest discoveries, new technology gadgets, politics news, and more.
Latest news
Related news
- Advertisement -

Leave a Reply