ASX collapses 0.6%

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Major Wall Street stock indexes ended mixed on Monday (UTC), as losses at tech and healthcare companies outpaced gains elsewhere in the market.

The S&P 500 fell 0.3% after spending much of the day essentially flat. The pullout ended a three-day winning streak for the benchmark, which last week recorded its first weekly gain in three weeks.

The high-tech Nasdaq composite fell 0.5%, while the Dow Jones Industrial Average managed a gain of 0.2%. Smaller company stocks outperformed the market as a whole, pushing the Russell 2000 index up 1.5%.

Wall Street had a turbulent September.Credit:NYSE

The Australian equity market is expected to get off to a negative start, with futures at 6:59 am AEST pointing to a drop of 42 points, or 0.6% to open.

Bond yields have generally increased. The 10-year Treasury yield hit 1.49%, from 1.46% on Friday night. It was 1.31% a week ago, as market nervousness prompted investors to move money into bonds, reducing their yield, but increasing since Tuesday.

Banks made solid gains on the rise in the 10-year Treasury yield. The yield influences the interest rates on mortgages and other consumer loans, so when it rises, it allows lenders to charge higher rates. Bank of America gained 2.7%.

“The story now is higher bond yields and what areas of the (stock) market are benefiting,” said Willie Delwiche, investment strategist at All Star Charts.

The S&P 500 lost 12.37 points to 4,443.11, the Nasdaq lost 77.73 points to 14,969.97 and the Dow gained 71.37 points to 34,869.37. The Russell 2000 gained 32.93 points to 2,281, a sign that investors are still confident about future economic growth.

Markets have had a turbulent month so far and the S&P 500 is set to lose 1.8% in September, which would mark the first monthly loss since January.

PA

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