US Stock Market Declines as Bond Yields and Oil Prices Rise
The US stock market experienced a decline on Tuesday as rising bond yields and higher oil prices dampened investor sentiment. The main U.S. stock indexes, including the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite, fell due to increased rate-hike bets and renewed clashes in the Middle East.
According to Angelo Kourkafas, senior global investment strategist at Edward Jones, 'There is a bit of a vacuum. The macro is back in control and we're going to have a couple of months until the next corporate updates.' This suggests that investors are bracing for potential volatility in the coming weeks.
The S&P 500 has historically been weak in September, with an average loss of 0.7% since 1926. However, Anthony Saglimbene, chief market strategist at Ameriprise Financial, believes that 'The fundamental backdrop for stocks and the economy is sound.' He advises investors to stay invested through the seasonal chop rather than trying to time the market.
The Philadelphia SE Semiconductor index fell 2.7% to a near one-month low, while Broadcom was down 1.8%. Nvidia, Intel, and AMD also saw declines between 1.3% and 2.6%.