4:05pm: Wall Street loses ground at the close
US stocks ended the month of September seeing red across the board, as investors eye Treasury bond yields and debates in Washington.
The S&P 500 finished the day at a 1.19% loss, closing at 4,308 points, while the Dow lost 1.59% to finish at 33,844 points. Over on the Nasdaq, the tech-heavy index saw a more moderate decline of 0.44% to end the day at 14,449 points.
12:05pm: US equities down at noon after a rough month
US stocks were down midday as Wall Street eyes a sobering close to a rough month.
Market weakness comes amid rising inflation and a late interest rate surge sparked by the Federal Reserve signaling it would start removing stimulus soon.
As of noon, the Dow Jones Industrial Average fell 380 points, or 1.08%, to 34,014. The S&P 500 dropped 31 points, or 0.71%, to 4,328.
The tech-heavy Nasdaq declined 27 points, or 0.18%, to stand at 14,485.
Joshua Mahony, senior market analyst at online trading group IG, said investors are concerned about a rise in initial jobless claims and the debates over the debt ceiling and Biden administration infrastructure bill in the US Congress.
“Mixed US markets are being led higher by tech outperformance today, with a disappointing jobless claims figure driving treasury yields lower to the benefit of growth stocks,” he said. “The third consecutive rise in initial jobless claims serves to highlight the uneven recovery path underway in the US. The dollar has been the big outperformer in the currency market this week, yet today's jobless claims figure has at least provided some respite despite the likeliness that it will make minimal material impact on Fed thinking.”
He added: “The remainder of the week is likely to bring the US into sharp focus, with the government hoping to make progress on both the debt ceiling and the bipartisan infrastructure bill.”
The biggest gainer on the day so far is China Resources Power Holding Company, up 200% to $3 a share.
10.05am: Proactive North America headlines:
Adastra Holdings (CSE:XTRX, FRA:D2EA) expands Phyto Extractions product sales into Canada’s Yukon territory
Goldseek Resources says ongoing drill has intersected gold-bearing zone in all holes
LexaGene successfully demonstrates its MiQLab diagnostic tool for the first time at series of trade shows
Bragg Gaming acquisition target Spin Games awarded State of Connecticut Online Gaming Service Provider license
Elys and Grand Central Restaurant and Bar open on October 4 for patrons to place real-money sports bets
Safe-T Group (NASDAQ:SFET) bolsters portfolio with iShield solution, which it aims to launch by beginning of 2022
Bhang announces expanded partnership with US-based Trulieve Cannabis
Starton Therapeutics announces successful results of toxicology study for lenalidomide STAR-LLD program
Logiq engages The Benchmark Company to explore restructuring initiative
ESE signs letter of intent to acquire European esports media company, Frenzy
NEXE rounds out year ended May 31, 2021, with ample cash to execute on high demand for its environmentally friendly coffee pods
Tocvan Ventures to buy 100% of Rogers Creek copper project, aims to spin it out into new firm Cascade Copper
Versus Systems partners with Edmonton Elks on sponsored interactive fan experience
Renforth Resources discovers nickel on-surface at a new location on its Surimeau District Battery Metals property
Empress Royalty lifts its gold stream on Sierra Antapite mine in Peru to 3.375%
Braxia Scientific says study reveals significant reduction in depressive symptoms and suicidality with ketamine as a solo treatment
PowerTap files first municipal application for siting of its Gen3 hydrogen dispensing units in California
AIM ImmunoTech inks clinical trial agreement for a Phase 2a Human Challenge Trial of Ampligen as an intranasal prophylaxis against respiratory viruses
9.45am: US stocks start ahead
US shares started higher on Thursday as traders try to end the month on a positive note, while mulling over weekly initial jobless claims data.
The Dow Jones Industrial Average gained over 130 points to stand at 34,520 in early New York deals.
The S&P 500 added around 18 points at 4,377. The tech-laden Nasdaq index advanced nearly 100 points at 14,611.
Official data showed on Thursday that claims for unemployment benefits in the US rose by 11,000 last week to 362,000 - the third weekly rise in a row and against expectations that they would fall by 21,000.
"This poor performance puts additional pressure on next Friday's US nonfarm payrolls to confirm that the labor market is indeed improving," said Marshall Gittler, head of investment research at BDSwiss Holding in a note.
"Everyone had thought there'd be a big improvement in September, because schools are open again and so many parents can now go back to work. Also with the extraordinary federal unemployment benefits expiring, some people had expected those living off benefits would be forced back to work. So far though it isn't showing up in the data."
The Federal Reserve is also a focus today with chair Jerome Powell due to testify before the House Financial Services Committee at 10am alongside Treasury Secretary Janet Yellen.
7.00am: US stocks seen opening higher
US stocks are expected to open higher on the last trading day of September following a mixed session on Wednesday as investors remain on edge over whether US lawmakers will vote to suspend the debt ceiling to avoid a credit default.
Futures for the Dow Jones Industrial Average futures added 0.43% in Thursday pre-market trading, while the broader S&P 500 index gained 0.4% and those for the tech-heavy Nasdaq-100 rose 0.35%.
At the close on Wednesday, the Dow rose 91 points to 34,391, while the S&P 500 edged up 7 points at 4,360 and the Nasdaq moved 34 points lower to 14,512.
While the Democrat-dominated House of Representatives passed a bill to the debt ceiling as the US moves toward a first-ever default, Republicans are expected to block the plan in the Senate.
“US equity futures have adopted a more positive tone in Asia – S&P minis are currently up 0.8% – with Senate majority leader Schumer telling reporters that the Senate will vote this morning on a continuing resolution to keep the government open until 3 December, thus averting a shutdown from tomorrow,” Daiwa Capital Markets analyst Chris Scicluna commented.
“Of course, this leaves the much thornier issue of the debt ceiling still to be addressed – a standalone bill approved by the House yesterday will certainly fail to pass in the Senate – with Republicans still hoping to leverage this in a bid to force Biden to substantially pare his budget spending plans. Despite the rise in equity futures, Treasury yields have traded slightly lower in Asia.”
"While it appears that Congress will pass a continuing resolution today to keep the government open until 3 December, this simply turns attention to the even more pressing need to raise or suspend the debt ceiling by about the middle of next month in order for the US to avert a default," he added.