Standard & Poor’s declines at the end of the amazing quarter for stocks: Markets wrap

(Bloomberg) — Volatility continued to weigh on risky assets, with energy prices soaring and US stocks sliding toward their worst quarter since the pandemic began.

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Economically sensitive companies led losses in the S&P 500, with the gauge on track to reach its lowest level since July. Poor expectations at Bed Bath & Beyond Inc. And supply chain concerns at Kohl’s Corp are down for retailers. Oil resumed its advance, while natural gas rose.

The political row in Washington threatens to drive the United States into default and force President Joe Biden to scale back his spending agenda. Democratic Senator Joe Manchin wants a tax and social spending bill that would cover the bulk of Biden’s economic agenda back to $1.5 trillion – less than half of the scheme 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” from the room after the debt limit deadline

“The old adage, the market climbs a wall of anxiety, is not lost on us,” said Tom Mantion, managing director at UBS Private Wealth Management. “Concerns about China, the pandemic, debt ceiling and tax legislation are weighing on investors right now, but it is important to understand which issues may create structural change and which ones create short-term volatility that investors can take advantage of.”

Central government officials in China have ordered the country’s major state-owned energy companies — from coal to electricity and oil — to secure supplies for this winter at any cost, according to people familiar with the matter.

Here are some must-watch events this week:

  • University. Michigan sentiment, ISM manufacturing, US construction spending, personal spending/income, Friday

For more market analysis, read our MLIV blog.

Some of the main movements in the markets:

Stores

  • The S&P 500 was down 0.7% as of 12:52 p.m. New York time

  • The Nasdaq 100 is little changed

  • The Dow Jones Industrial Average fell 1.2%

  • The MSCI World Index fell 0.4%

coins

  • Bloomberg spot dollar index down 0.2%.

  • The euro fell 0.2 percent to $1.1574

  • The British pound rose 0.3 percent to $1.3466

  • The Japanese yen rose 0.5% to 111.44 per dollar

bonds

  • The yield on the 10-year Treasury was little changed at 1.52%.

  • Germany’s 10-year yield advances one basis point to -0.20%

  • The UK 10-year bond yield advanced three basis points to 1.02%.

goods

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

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

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