S&P collapses at the end of a dizzying quarter for equities: markets are enveloped

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(Bloomberg) – Volatility continued to disrupt risky assets, with energy prices rising and US stocks slipping into their worst quarter since the start of the pandemic.

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Economically sensitive companies led losses in the S&P 500, with the gauge on track to its lowest level since July. The poor forecast from Bed Bath & Beyond Inc. and supply chain concerns at Kohl’s Corp. have dragged retailers down. Oil resumed its advance, while natural gas soared.

Political wrangling in Washington threatens to push the United States into default and force President Joe Biden to cut his spending program. Democratic Senator Joe Manchin wants the tax and social spending bill that would encompass the bulk of Biden’s economic agenda cut to $ 1.5 trillion – less than half of the plan written by Democrats in Congress. House Speaker Nancy Pelosi is pushing ahead with a vote on a bipartisan infrastructure bill, despite threats from Progressive Democrats.

Read: Yellen hints at ‘a few days’ of up after debt deadline

“The old adage, the market is climbing a wall of worry, is not lost on us,” said Tom Mantione, Managing Director of UBS Private Wealth Management. “Concerns about China, the pandemic, the debt ceiling and tax laws currently weigh on investors, but it is important to understand which problems can create structural change and which create short-term volatility that investors can. take advantage. “

Chinese central government officials have ordered the country’s main public energy companies – from coal to electricity and oil – to guarantee supplies for this winter at all costs, according to people familiar with the matter.

Here are some events to watch this week:

  • Univ. of Michigan sentiment, Manufacturing ISM, US construction spending, spending / personal income, Friday

For more market analysis, read our MLIV blog.

Some of the main movements in the markets:

Actions

  • The S&P 500 fell 0.7% at 12:52 p.m. New York time

  • The Nasdaq 100 has changed little

  • The Dow Jones Industrial Average fell 1.2%

  • The MSCI World index fell 0.4%

Currencies

  • Bloomberg Dollar Spot Index fell 0.2%

  • The euro fell 0.2% to $ 1.1574

  • The British pound rose 0.3% to $ 1.3466

  • The Japanese yen rose 0.5% to 111.44 per dollar

Obligations

  • The yield on 10-year treasury bills was little changed at 1.52%

  • German 10-year rate rose one basis point to -0.20%

  • UK 10-year yield rose three basis points to 1.02%

Merchandise

  • West Texas Intermediate crude rose 1.4% to $ 75.87 a barrel

  • Gold futures rose 2% to $ 1,758.10 an ounce

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