Daily global market review

Today, the major indices all experienced significant declines of more than 1.0%, erasing yesterday's modest rebound. This negative trend was primarily attributed to ongoing concerns about rising interest rates. The yield on the 10-year Treasury note increased by two basis points to 4.56%, despite the release of weaker-than-expected data on new home sales and consumer confidence earlier in the day, which had initially pushed yields down to 4.48%. The 2-year note yield also rose by two basis points to 5.12%.

The worries about higher interest rates were exacerbated by remarks from JPMorgan Chase CEO Jamie Dimon, who expressed uncertainty about whether the world is prepared for rates as high as 7%. Minneapolis Fed President Kashkari, a voter on the Federal Open Market Committee (FOMC), added to the concerns by suggesting that another rate hike might be necessary before the end of the year if the economy performs better than expected.

Market observers also cited seasonality as a potential factor contributing to the negative price action. Historically, September has been the worst month of the year for the S&P 500, and this month has seen losses of 5.2%, 6.9%, and 7.2% for the S&P 500, Nasdaq Composite, and Russell 2000, respectively.

In terms of sectors, mega-cap stocks and semiconductor companies led the broad-based losses, while the rate-sensitive utilities sector experienced the most significant decline of 3.1%. The Vanguard Mega Cap Growth ETF fell by 1.7%, and the PHLX Semiconductor Index declined by 1.8%. The S&P 500, weighted by market capitalization, closed down 1.5% and ended the day below 4,300 for the first time since early June.

Decliners outnumbered advancers significantly, with a nearly 6-to-1 lead at the NYSE and a greater than 2-to-1 lead at the Nasdaq. Trading volume increased compared to the previous day but remained below average at both exchanges.

All 11 sectors of the S&P 500 ended the day in negative territory, with the energy sector showing the smallest decline of 0.5%, thanks to higher oil prices. The consumer discretionary sector (-2.0%) and the information technology (-1.8%) and real estate (-1.8%) sectors were notable laggards.

In other news, Amazon saw a notable decline of 4.0% after the FTC and 17 state attorneys general filed a lawsuit against the company for allegedly maintaining an illegal monopoly.

In summary, the market faced a challenging day with significant declines driven by concerns about rising interest rates, seasonal factors, and weakness in mega-cap and tech stocks. The S&P 500 slipped below the 4,300 mark, and the specter of higher rates for a longer period weighed on investor sentiment.

In the global financial markets on the given day, several key indices and assets displayed varying degrees of performance. In the United States, the Dow recorded a price of 33,618.88, marking a decrease of -388.00 points, equivalent to a 1.14% drop. Similarly, the S&P 500 closed at 4,273.53, reflecting a decline of -63.91 points, translating to a 1.47% decrease. The NASDAQ index also experienced a decrease, ending at 13,063.61 with a -207.71 point change, representing a 1.57% loss. In contrast, the VIX index, measuring market volatility, increased by 2.45 points, or 14.50%, closing at 19.35. The Russell 2000 index in the U.S. showed a decrease of -22.63 points, marking a 1.27% decline. In Canada, the S&P/TSX Composite index exhibited a decrease of -233.81 points, or 1.18%, closing at 19,566.80, while the S&P/TSX 60 index dropped by -12.88 points, or 1.08%, ending at 1,174.44. In Brazil, the BOVESPA index experienced a decrease of -1,670.11 points, equivalent to a 1.44% loss, closing at 114,254.50. The S&P IPSA index in Chile recorded a decrease of -23.26 points, marking a 0.40% drop, with a closing value of 5,762.58. In Mexico, the S&P/BMV IPC index declined by -247.19 points, or 0.48%, closing at 51,120.27.

Moving to European markets, the STOXX Europe 50 index closed at 3,902.46, reflecting a decrease of -24.07 points, or 0.61%. Similarly, the STOXX Europe 600 index exhibited a 0.61% decrease, with a change of -2.74 points, closing at 447.70. The FTSE 100 index in the United Kingdom showed a minimal change, with a gain of +1.73 points, or 0.02%, ending at 7,625.72. Meanwhile, the FTSE MIB index in Italy recorded a decline of -283.31 points, marking a 1.00% decrease, closing at 28,098.88. In France, the CAC 40 index decreased by -49.86 points, equivalent to a 0.70% drop, closing at 7,074.02.

Across Asian markets, Japan's Nikkei 225 index closed at 32,315.05, with a decrease of -363.57 points, reflecting a 1.11% loss. In Hong Kong, the Hang Seng index exhibited a decrease of -262.39 points, or 1.48%, closing at 17,466.90. The Shanghai Composite index in China showed a smaller decline, with a change of -13.33 points, marking a 0.43% decrease, closing at 3,102.27. Australia's S&P/ASX 200 index remained relatively stable with no net change. South Korea's KOSPI index recorded a decrease of -32.79 points, equivalent to a 1.31% drop, closing at 2,462.97. The Taiwan SE index exhibited a decrease of -176.16 points, reflecting a 1.07% loss, ending at 16,276.07.

In the Indian stock market, various indices displayed mixed performance on September 26th. The BSE MidCap index recorded a slight decrease of 0.09%, closing at 32,066.50. The BSE Sensex also experienced a minor decline of 0.12%, ending at 65,945.47. In contrast, the BSE SmallCap index showed a gain of 0.33%, reaching 37,225.00. The India VIX, a measure of market volatility, increased by 2.61% to 11.1850. Among the highest gainers, the NIFTY Smallcap 100 index saw a notable increase of 0.57%, rising to 12,552.15. The Nifty Smallcap 50 index also performed well, gaining 0.72% and reaching 5,799.35. Additionally, the Nifty 50 Value 20 index showed a slight gain of 0.02%, closing at 10,443.25. The Nifty Smallcap 250 index recorded a gain of 0.43%, closing at 12,100.75. Lastly, the S&P BSE ALLCAP index increased by 0.02% to 7,946.70. On the other hand, some of the indices that experienced declines include the NIFTY Midcap 100, which decreased by 0.17% to 40,338.85, and the Nifty Midcap 50, which saw a decline of 0.40%, closing at 11,554.70. The Nifty 200 index also recorded a minor decrease of 0.03%, ending at 10,515.65. The Nifty 50 and Nifty 50 USD indices both declined by 0.05% and 0.17%, respectively, closing at 19,664.70 and 8,185.62. Furthermore, the S&P BSE-100 and S&P BSE-200 indices exhibited small decreases of 0.03% and 0.04%, respectively.

• Tesla, Inc. (TSLA) had a price of 244.12, showing a decrease of 2.87 points, equivalent to a 1.16% change in percentage, with a trading volume of 102 million shares. The 52-week range for TSLA was between 101.81 and 299.29.
• Amazon Inc. (AMZN) saw a price of 125.98, reflecting a decline of 5.29 points, equaling a 4.03% decrease, and had a trading volume of 70 million shares. The 52-week range for AMZN was between 81.43 and 145.86.
• Apple Inc. (AAPL) had a price of 171.96, showing a decrease of 4.12 points, which amounted to a 2.34% change in percentage, with a trading volume of 64 million shares. The 52-week range for AAPL was between 124.17 and 198.23.
• Sirius XM Holdings, Inc. (SIRI) had a price of 3.88, reflecting a decrease of 0.13 points, equivalent to a 3.24% change in percentage, and had a trading volume of 64 million shares. The 52-week range for SIRI was between 3.32 and 7.95.
• Advanced Micro Devices, Inc. (AMD) had a price of 95.96, with a decrease of 1.42 points, resulting in a 1.46% change in percentage, and a trading volume of 43 million shares. The 52-week range for AMD was between 54.57 and 132.83.
• NIO Inc. Sponsored ADR Class A (NIO) had a price of 8.41, showing an increase of 0.06 points, equivalent to a 0.72% change in percentage, with a trading volume of 42 million shares. The 52-week range for NIO was between 7.00 and 18.40.
• Bank of America Corp (BAC) had a price of 27.17, reflecting a decrease of 0.43 points, equaling a 1.56% change in percentage, and a trading volume of 42 million shares. The 52-week range for BAC was between 26.32 and 38.60.
• Soleno Therapeutics Inc (SLNO) saw a price of 26.80, with a substantial increase of 22.37 points, resulting in a 504.97% change in percentage, and had a trading volume of 41 million shares. The 52-week range for SLNO was between 0.85 and 30.30.
• Ford Motor Company (F) had a price of 12.43, reflecting a decrease of 0.15 points, equivalent to a 1.19% change in percentage, with a trading volume of 41 million shares. The 52-week range for F was between 10.90 and 15.42.
• NVIDIA Corporation (NVDA) had a price of 419.11, showing a decrease of 3.11 points, which amounted to a 0.74% change in percentage, and a trading volume of 40 million shares. The 52-week range for NVDA was between 108.13 and 502.66.
• Soleno Therapeutics Inc (SLNO) had a price of 26.80, showing a significant increase of 22.37 points, equivalent to a 504.97% change in percentage, with a trading volume of 41 million shares. The 52-week range for SLNO was between 0.85 and 30.30.
• Immunovant Inc (IMVT) had a price of 39.96, reflecting a substantial increase of 19.68 points, resulting in a 97.04% change in percentage, and had a trading volume of 35 million shares. The 52-week range for IMVT was between 4.26 and 41.72.
• Intercept Pharmaceuticals, Inc. (ICPT) had a price of 18.71, showing a notable increase of 8.27 points, equaling a 79.21% change in percentage, and a trading volume of 37 million shares. The 52-week range for ICPT was between 8.82 and 21.86.
• Fast Acquisition Corp. II Class A (FZT) had a price of 13.69, reflecting an increase of 3.05 points, equivalent to a 28.67% change in percentage, with a trading volume of 431,000 shares. The 52-week range for FZT was between 9.80 and 15.27.
• Alpha Teknova, Inc. (TKNO) had a price of 2.92, showing a rise of 0.61 points, resulting in a 26.41% change in percentage, and a trading volume of 332,000 shares. The 52-week range for TKNO was between 1.62 and 6.48.
• BullFrog AI Holdings, Inc. (BFRG) had a price of 3.55, reflecting an increase of 0.68 points, equaling a 23.69% change in percentage, with a trading volume of 31 million shares. The 52-week range for BFRG was between 2.47 and 9.50.
• Adial Pharmaceuticals, Inc. (ADIL) had a price of 3.12, showing a rise of 0.57 points, which amounted to a 22.35% change in percentage, and had a trading volume of 1 million shares. The 52-week range for ADIL was between 2.44 and 15.00.
• Roivant Sciences Ltd. (ROIV) had a price of 12.41, reflecting an increase of 2.20 points, resulting in a 21.55% change in percentage, and a trading volume of 22 million shares. The 52-week range for ROIV was between 2.92 and 12.84.
• Applied Therapeutics, Inc. (APLT) had a price of 2.46, showing a rise of 0.41 points, equivalent to a 20.00% change in percentage, with a trading volume of 2 million shares. The 52-week range for APLT was between 0.50 and 2.90.
• Apptech Payments Corp (APCX) had a price of 3.22, reflecting an increase of 0.52 points, equaling a 19.26% change in percentage, and a trading volume of 202,000 shares. The 52-week range for APCX was between 0.40 and 5.37.

In the realm of cryptocurrencies, the Nasdaq Crypto Index closed at 1,502.35, with a minor increase of +0.42 points, or 0.03%. Bitcoin recorded a price of 26,269.00, showing a slight decrease of -27.00 points, equivalent to a 0.10% drop. Ether, another prominent cryptocurrency, exhibited a gain of +2.20 points, marking a 0.14% increase, with a closing price of 1,590.40. Litecoin showed a decrease of -0.36 points, representing a 0.56% loss, closing at 63.91. Lastly, XRP remained stable with no net change, closing at 0.51.

In the currency markets, the Euro to US Dollar exchange rate was 1.0574, showing a minimal decrease of -0.00 points, or 0.18%. The British Pound to US Dollar exchange rate recorded a slight decline of -0.01 points, marking a 0.44% decrease, with a rate of 1.2158. The US Dollar to Canadian Dollar exchange rate was 1.3519, reflecting a minor increase of +0.01 points, equivalent to a 0.48% gain. Similarly, the US Dollar to Swiss Franc exchange rate remained relatively stable, with no net change, closing at 0.9154. The US Dollar to Japanese Yen exchange rate increased by +0.17 points, or 0.12%, with a rate of 149.0275.

Finally, in the bond market, yields for various Treasury bonds experienced fluctuations. The 3 Month Treasury bond yield stood at 5.327%, with no net change. The 2 Year Treasury bond yield recorded a yield of 5.136%, showing a yield change of +0.017 points. The 5 Year Treasury bond yielded 4.625%, with a yield change of +0.009 points. The 10 Year Treasury bond had a yield of 4.553%, reflecting a yield change of +0.016 points. Lastly, the 30 Year Treasury bond yielded 4.689%, with a yield change of +0.022 points.

On Wednesday, September 27, 2023, there will be several key economic events. At 7:00 AM ET, the MBA Mortgage Applications data will be released, covering the Composite Index, Purchase Index, and Refinance Index with a low expected impact. At 8:30 AM ET, the Durable Goods Orders report will provide information on Excluding Transportation, Core Capital Goods, and New Orders, with a high expected impact. The State Street Investor Confidence Index will follow at 10:00 AM ET, but no forecast is available for this low-impact event. At 10:30 AM ET, the EIA Petroleum Status Report will include data on Distillate Inventories, Gasoline Inventories, and Crude Oil Inventories, carrying a high expected impact. Lastly, at 11:00 AM ET, the Survey of Business Uncertainty will disclose figures on Employment Growth and Sales Growth, with a low expected impact.

• Market Sentiment and Fed Policy: The stock market's recent decline is primarily attributed to concerns about the Federal Reserve's monetary policy. Investors are anxious that the Fed may maintain higher interest rates for an extended period. This suggests that market sentiment is closely tied to central bank actions, and any hints of prolonged monetary tightening could continue to affect stock prices negatively.
• Sector Performance: Notably, defensive sectors like healthcare and consumer staples have shown resilience during the market downturn, while consumer discretionary and technology sectors have underperformed. This suggests that investors are shifting their preferences towards more stable and less volatile sectors during uncertain times.
• Global Equities: The global equity market is also experiencing a downturn, indicating that concerns about the Fed's policy and rising interest rates are not limited to the U.S. This global effect could persist until there is more clarity on central banks' intentions.
• Interest Rates and Fed Communication: The recent rise in interest rates, with ten-year U.S. Treasury yields at their highest levels since 2007, continues to impact financial markets. Fed officials are likely to maintain their commitment to combat inflation and tighten monetary policy if necessary, which may keep market expectations in check. However, the market could remain cautious until additional inflation data is evaluated.
• U.S. Government Shutdown: The possibility of a U.S. government shutdown is contributing to a risk-off sentiment in the stock market. While it's believed that a shutdown would not disrupt debt payments or the broader economy, the uncertainty and focus on political divisions in Washington could add temporary anxiety to the markets.
• Housing Market: Housing data is sending mixed signals, with building permits rising but new home sales declining. The moderation in home-price appreciation suggests that higher interest rates are affecting the housing market, potentially slowing down purchase activity and home values. However, this could also alleviate inflationary pressures related to shelter costs.