The Dow falls 400 points as stocks see the worst month of the year

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.

Major Wall Street indices opened higher Thursday but failed to hold gains. Around noon that Dow (UNDUE) Traded 1.2% or about 400 points lower while the S&P 500 (SPX) decreased by 0.7%.
The tech-heavy one Nasdaq composite (COMP) declined only 0.1% as losses were mainly led by financials and consumer stocks.

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.

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