Dow drops 400 points as stocks view worst month of year

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Equities were extremely choppy in September, as investors grappled with an abundance of issues: high inflation expectations, rising bond yields, pace of economic recovery, the US debt ceiling and debt levels in the US. Chinese companies.

The main Wall Street indices opened higher on Thursday, but were unable to hold onto their gains. Around noon, the Dow (UNDUE) traded 1.2%, or around 400 points, down, while the S&P 500 (SPX) was down 0.7%.
Heavy technology Nasdaq Composite (COMP) fell only 0.1%, with losses mainly attributable to financials and consumer spending.

All three indices are forecasting their worst monthly performance of this year.

As for the S&P 500, it promises to be its worst month since the start of the pandemic. The Dow Jones and the Nasdaq are forecasting their worst month since October and September last year, respectively.

The shares were last sold on Tuesday after Federal Reserve Chairman Jerome Powell told lawmakers high inflation could stick around a bit longer.

Yields on US Treasury bonds, which are sensitive to inflation expectations as they track interest rate expectations, jumped earlier in the week. On Thursday, the 10-year government bond edged down to 1.52%. Bond prices and yields move in opposition.

Also Thursday, Powell and Treasury Secretary Janet Yellen return to Congress, testifying to the coronavirus crisis and the policy responses to it.

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