Buy now, hurt later: Investors see market rebound amid sell-off
As investors settle into what is historically the worst performing month for stocks, the S&P 500 turned positive just in time on Thursday before slipping into five straight days of losses .
Eight of the market's 11 sectors had positive final closes, with health being the biggest winner with returns of 1.65%. Energy, on the other hand, lost momentum, falling 2.3% on Thursday and 5.72% in the previous five trading sessions as oil prices returned to levels seen before the Russian-Ukrainian war. .
Learn more: Portfolio Warning: Why September is a historically tough month for the stock market
Speaking of Russia, after this week's announcement of large profits and dividends from state-owned energy company Gazprom, a former partner of Shell PLC SHEL, rose nearly 20%. The Nord Stream gas pipeline was closed on Wednesday for repairs by the company, which has been at the heart of Europe's gas crisis. Gas flow is expected to resume on September 3.
In the US, the Nasdaq Composite lost 0.26% and the broader S&P 500 market gained 0.30% in the final minutes of trading. The moves came as the 2-year US Treasury yield rose to 3.51% on Thursday, its highest level since November 2007.
Shares of Nvidia Corporation NVDA, a computer chip maker, also contributed to major losses as they fell more than 8% - a low of 12% - after the chipmaker said the Biden administration is restricting some sales to China and Russia, which could result in losses of $400 million in the third quarter.
Learn more: EXCLUSIVE: Why Nvidia could see "$2 billion hit in 2023" from US crackdown on China chip exports
After absorbing recent hawkish talk from Fed officials showing no signs of backing down on interest rate hikes, many are now wondering if indices will defy June lows as major averages enter the fifth straight day of losses.
Photo: Shutterstock
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
As investors settle into what is historically the worst performing month for stocks, the S&P 500 turned positive just in time on Thursday before slipping into five straight days of losses .
Eight of the market's 11 sectors had positive final closes, with health being the biggest winner with returns of 1.65%. Energy, on the other hand, lost momentum, falling 2.3% on Thursday and 5.72% in the previous five trading sessions as oil prices returned to levels seen before the Russian-Ukrainian war. .
Learn more: Portfolio Warning: Why September is a historically tough month for the stock market
Speaking of Russia, after this week's announcement of large profits and dividends from state-owned energy company Gazprom, a former partner of Shell PLC SHEL, rose nearly 20%. The Nord Stream gas pipeline was closed on Wednesday for repairs by the company, which has been at the heart of Europe's gas crisis. Gas flow is expected to resume on September 3.
In the US, the Nasdaq Composite lost 0.26% and the broader S&P 500 market gained 0.30% in the final minutes of trading. The moves came as the 2-year US Treasury yield rose to 3.51% on Thursday, its highest level since November 2007.
Shares of Nvidia Corporation NVDA, a computer chip maker, also contributed to major losses as they fell more than 8% - a low of 12% - after the chipmaker said the Biden administration is restricting some sales to China and Russia, which could result in losses of $400 million in the third quarter.
Learn more: EXCLUSIVE: Why Nvidia could see "$2 billion hit in 2023" from US crackdown on China chip exports
After absorbing recent hawkish talk from Fed officials showing no signs of backing down on interest rate hikes, many are now wondering if indices will defy June lows as major averages enter the fifth straight day of losses.
Photo: Shutterstock
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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