Wall Street closed out a choppy week of trading on Friday (US time) with a mixed finish for the major stock indexes, though the S&P 500 managed its first weekly gain in three weeks.
The benchmark index rose 0.1 per cent after spending much of the day wavering between small gains and losses. The Dow Jones Industrial Average also eked out a 0.1 per cent gain, while the Nasdaq composite and the Russell 2000 index of small-company stocks fell.
Wall Street has had a mixed September.Credit:AP
It sets up the Australian sharemarket to inch higher to start the week, with futures pointing to a 2-point gain at the open.
Slightly more stocks in the S&P 500 rose than fell, with communication services companies and banks driving much of the increase. Health care and real estate stocks posted some of the biggest losses. The index ended with a 0.5 per cent gain for the week.
The modest showing followed a two-day rally that helped erase a slump earlier in the week. Investors have been facing similar choppiness throughout September as they try to gauge how the economy will continue its recovery.
“The market today was sort of catching its breath after the sharp slump in the first two days of the week and the sharp advance in the second two days of the week,” said Sam Stovall, chief investment strategist at CFRA.
The S&P 500 rose 6.50 points to 4,455.48 and is now within 1.9 per cent of the all-time high it set September 2. The Dow added 33.18 points to 34,798. The Nasdaq slipped 4.54 points, or less than 0.1 per cent, to 15,047.70, while the Russell 2000 dropped 10.97 points, or 0.5 per cent, to 2,248.07.
Markets have had a rough September and investors could be in for more choppiness as they work through a mix of concerns, including COVID-19 and its lingering impact on the economy, along with a slow recovery for the employment market.
Traders did receive some clarity from the Federal Reserve this week. After its two-day policy meeting concluded Wednesday, the central bank said it will likely begin tapering the pace of its monthly bond purchases soon, but not before November, if the economy keeps improving. The Fed and other central banks have been buying bonds throughout the pandemic to help keep long-term interest rates low.
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