Day Traders Diary
The major averages pulled back on Tuesday, giving up gains earlier in the session after a better-than-feared inflation reading and falling back into their September doldrums. The Dow Jones Industrial Average lost 292 points, or 0.8%, to 34,577. The S&P 500 dipped 25 points or 0.57% to 4,443 while the Nasdaq Composite ticked down 67 points or 0.45% to 15,037.
Stocks popped at the open after the August consumer price index, while still showing a significant jump in inflation, came in less than expected. However, the stock averages turned lower roughly half an hour into trading.
Shares linked to the economic recovery dropped. Bank of America led financial shares lower. General Electric took industrial shares into the red.
Apple shares closed nearly 1% lower after the company unveiled the new iPhone 13 at its annual fall product event, its stock movement in line with historical patterns.
Meanwhile, investors crowded into some of their favorite tech bastions with Microsoft higher.
Stocks have been under pressure since August's jobs report, released by the Labor Department on Sept. 3, missed expectations.
All three indexes are down at least 1% in September. For the past two days, stocks rolled over from intraday highs earlier in the session.
September is historically the worst month for markets with an average decline of 0.56% in the month dating back to 1945, according to CFRA.
The Federal Reserve begins a two-day policy meeting on September 21. The central bank is monitoring key economic indicators like inflation readings as it decides when to taper its pandemic-era easy monetary policy.
In Washington, House Democrats on Monday proposed new tax hikes on corporations and wealthy people to fund a $3.5 trillion social safety net and climate policy bill.
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