S&P 500, Nasdaq edge up after recent weakness; Dow down

Traders on the floor of the New York Stock Exchange (NYSE) experienced a mixed day on September 26, 2023, as the S&P 500 and Nasdaq saw slight gains while the Dow Jones Industrial Average dipped slightly. This came after a sell-off the previous day.

The reason behind the cautious optimism can be attributed to the latest economic data, which showed that U.S. private payrolls grew at a slower pace than expected in September. This news helped to ease longer-dated U.S. Treasury yields off their 16-year highs. However, concerns about rising interest rates and the potential for the Federal Reserve to maintain higher rates for a longer period of time continued to be a focus for investors.

In addition to the payroll data, other economic indicators provided a mixed picture. New orders for U.S.-made goods increased more than expected in August, which is a positive sign for the economy. However, the upcoming jobs report for September, set to be released on Friday, remained a key focus for investors as they assessed the overall economic health.

Oliver Pursche, senior vice president and advisor for Wealthspire Advisors, talked about the shift in investor sentiment regarding interest rates. He noted, “It seems like it finally sunk in that interest rates are going to remain higher for longer, and that the idea that the Fed is going to cut rates any time soon is fictional.”

On the technical side, investors were closely watching the S&P 500’s support level at 4,200. After recent weakness, traders believed the market may be slightly oversold. This contributed to the slight upward movement in the S&P 500 and Nasdaq.

Among the individual stocks, several mega-cap shares, including Amazon.com, saw gains for the day. However, Ford Motor was among the day’s decliners, despite posting a nearly 8% rise in U.S. auto sales for the third quarter.

Overall, the trading day on September 26th reflected the ongoing uncertainty in the markets, with mixed economic data and concerns over interest rates and Fed policy. Traders will continue to monitor the upcoming jobs report and other economic indicators for further insights into the direction of the market.