Equities were extremely bumpy in September as investors faced a host of problems: high inflation expectations, rising bond yields, the pace of economic recovery, America’s debt ceiling and China’s corporate debt.
All three indices look at their worst monthly performance this year.
The S&P 500 is developing into its worst month since the pandemic began. The Dow and Nasdaq are looking at their worst month since October and September last year, respectively.
The shares were last sold on Tuesday after Federal Reserve Chairman Jerome Powell told lawmakers that high inflation could continue for a while.
US Treasury yields, which are sensitive to inflation forecasts because they replicate interest rate expectations, skyrocketed earlier in the week. On Thursday, the 10-year government bond slipped slightly, reaching a yield of 1.52%. Bond prices and yields move in opposite directions.
Also on Thursday, Powell and Treasury Secretary Janet Yellen will be back in front of Congress to testify about the coronavirus crisis and the political responses to it.