S&P 500 and Nasdaq end three-week winning streak

The US stock market had a volatile week, with investor sentiment dominated by statements from the US Federal Reserve (Fed), better-than-expected economic data and mixed signals on the outlook for monetary policy.

Traders at the New York Stock Exchange, USA. Photo: THX/TTXVN

Despite a recovery in the final session of the week on September 26 after the inflation report matched forecasts, all three major indexes of Wall Street still recorded an overall decline for the week.

In the trading session on September 26, US stocks rose after the report on the personal consumption expenditure (PCE) index for August 2025 - the Fed's preferred inflation measure - showed that prices increased as expected. PCE increased 0.3% compared to the previous month and increased 2.7% compared to the same period last year, close to analysts' forecasts. On the same day, other reports showed that personal income and consumer spending in the US were both higher than expected, reflecting the health of the US economy that is still quite stable.

The Dow Jones Industrial Average rose 299.97 points (0.65%) to 46,247.29 points at the close. The S&P 500 rose 38.98 points (0.59%) to 6,643.70 points, while the Nasdaq Composite rose 99.37 points (0.44%) to 22,484.07 points. However, for the week, the Dow Jones still fell 0.2%, the S&P 500 lost 0.3%, and the Nasdaq fell 0.7%. This decline ended a three-week streak of consecutive gains for the S&P 500 and Nasdaq.

The weekend’s developments also reflected the conflicting sentiment of investors, as they had to weigh strong economic signals against expectations that the Fed would continue its rate-cutting cycle after last week’s first cut since December 2024. “Investors are repositioning their portfolios for the end of the quarter and preparing for the third-quarter 2025 earnings season, which is set to kick off in mid-October,” said Bruce Zaro, director of Granite Wealth Management.

Before recovering at the end of the week, Wall Street had seen a series of declines since mid-week, when strong economic data made investors doubt the Fed would continue to cut interest rates at the expected pace.

US stocks fell for a second straight session on September 25 as investors took profits after a strong rally that pushed indexes close to record highs. Fed Chairman Jerome Powell's remarks that stock prices "appear to be quite high" raised concerns about the possibility of the market being overvalued. Selling pressure intensified after data released the same day showed the US economy grew 3.8% in the second quarter - significantly higher than the previously announced 3.3% and the fastest pace in nearly two years. The US dollar rose sharply against the euro, pound and Japanese yen. Analysts said the positive growth data is shaking confidence that the Fed will have to cut interest rates aggressively in the rest of the year.

Before the mid-week slump, the market started positively, with all three major indexes hitting new highs in the first session of the week on September 22, thanks to strong gains in technology stocks. Nvidia rose 4% after it announced it would invest up to $100 billion in OpenAI, while Apple rose more than 4% on positive signs of demand for its new iPhone. However, the rapid gains were halted in the session on September 23 when investors sold off after Chairman Powell's cautious comments on interest rate policy.

Investors are now looking ahead to the September 2025 jobs report, due next week, which could further shape the Fed’s monetary policy path for the rest of the year. In addition, the risk of a US government shutdown due to a budget impasse could also disrupt the release of economic data and increase market volatility.

Source: https://baotintuc.vn/thi-truong-tien-te/sp-500-va-nasdaq-cham-dut-chuoi-ba-tuan-tang-lien-tiep-20250927140937234.htm