In a session marked by ups and downs, the S&P 500 ended little changed on Wednesday as investors debated whether to start looking for deals following a sell-off fuelled by high Treasury yields and concern about the future of interest rates.
Investors kept a close eye on developments in Washington as disagreements among American politicians raised the possibility of a partial shutdown of the government by the weekend.
The possibility of a shutdown has increased investors’ concerns as they struggle with benchmark Treasury yields that have surged to 16-year highs as a result of the Federal Reserve’s previous week’s hawkish hints about the direction of interest rates.
Some investors are unsure if the market has reached a bottom as the S&P 500 has drastically reduced its year-to-date gain.
“At some point, people will start buying stocks for the fourth quarter, and the third-quarter selling might be almost done,” said Peter Tuz, president of Chase Investment Counsel.
At some point, people will start to believe that the fourth quarter might be a good one.
The S&P 500 increased by 1.10 points, or 0.04%, to close at 4,275.29 points, while the Nasdaq Composite increased by 29.24 points, or 0.22%, to close at 13,092.85. To reach 33,550.80, the Dow Jones Industrial Average dropped 61.79 points, or 0.20%.
In the S&P 500, the rate-sensitive utilities group experienced a significant decline. Energy costs increased as Brent crude crossed the $97 per barrel mark, posing a fresh threat to the inflation that has been slowing.
Investors are searching for a turning point, according to B. Riley Wealth’s chief market strategist, Art Hogan. “It won’t take much of a breath of fresh air in this market for people to chase this,” it is obvious.
The government is getting closer to experiencing its fourth partial shutdown in ten years after Republican U.S. House Speaker Kevin McCarthy rejected a stopgap funding package that was moving forward in the Senate.
According to data released on Wednesday, orders for durable U.S.-made goods increased in August, and company spending on equipment seemed to pick up steam after slowing down at the beginning of the third quarter.
For a new perspective on inflation, investors are paying close attention to Friday’s monthly personal consumption expenditures price index. The second quarter’s Gross Domestic Product will also be released this week, along with remarks from Federal Reserve Chair Jerome Powell.
In business-related news, Costco Wholesale stock increased as the retailer beat revenue and profit forecasts for the most recent quarter.