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By Brian
Hershberg | Friday, September 24 'A
Day of Reset.' Major U.S. stock
indexes were mixed in a
relatively quiet trading session today, a welcome respite for
investors after a tense stretch. The day's trading locked in gains
for the week that looked to be a longshot, at best, heading into
midweek. The
September rout looked entrenched on Monday, when the S&P
500 posted
its biggest point and percentage point decline since May 12 amid worries
surrounding the potential collapse of heavily indebted property developer China
Evergrande Group. A rally that
fizzled Tuesday didn't inspire much confidence that bulls could reclaim the
market narrative. Then the
clouds lifted. China's central bank injected $30 billion into its banking
system over the course of the week, cooling contagion concerns over any
fallout from the
Evergrande crisis. Federal
Reserve Chairman Jerome
Powell on Wednesday, while delivering the central
bank's relatively hawkish policy outlook regarding interest-rate liftoff,
assured investors that the unwinding of easy-money policies would come at a
measured pace and take into account the uncertainties stirred by the mutating
pandemic. By yesterday, the rally was on in convincing fashion, with the
S&P 500 ending 3% above its nadir and climbing back above its
50-day moving average. As for
today, Barron's stock-market
reporters write: “[T]oday is
a day of reset after all that we’ve been through this week,” says JJ Kinahan,
chief market strategist at TD Ameritrade. “There’s been so much news in such
a short period of time, people are hitting the reset button and saying,
‘Let’s see what happens this weekend and not expose ourselves if we don’t
have to.'” To that end,
the Dow Jones Industrial Average ended the week up 0.6%, the S&P 500
rose 0.5%, and the Nasdaq
Composite clung to a 0.02% gain. All three indexes
remain up solid double digits on the year. Outside of
stocks, yields on Treasuries continued to rise, with the 10-year note climbing
to 1.46% today, the highest level since July but still well off the year's
1.75% peak in March. Oil also
continued to rise, with West
Texas Intermediate crude, the U.S. benchmark, climbing 0.7%, to
$73.80. And cryptocurrencies tumbled as Chinese
regulators said all crypto-related transactions were illegal and
must be banned. Bitcoin lost around
4% and dipped below $41,000 at one point. Watch our TV
show on Fox Business Fridays at 9 p.m. or 10:30 p.m. ET; Saturdays at 11 a.m.
or 6:30 p.m. ET; or Sundays at 10 a.m. or 11:30 a.m. ET. This
week, insights on the impact of China Evergrande. |
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DJIA:
+0.10% to 34,798.00 The Hot
Stock: Match Group +4.0% Best Sector:
Communication Services +0.8% |
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