Stocks see worst month since March 2020

Stocks on Wall Street fell broadly Thursday, closing out September with their worst monthly loss since the beginning of the pandemic.

The S&P 500 ended the month 4.8 percent lower, its first monthly drop since January and the biggest since March 2020, when the viral outbreak rattled markets as it wreaked havoc with the global economy.

After climbing steadily for much of the year, the stock market became unsettled in recent weeks with the spread of the more contaslow gious delta variant of COVID-19, a sudden spike in long-term bond yields and word that the Federal Reserve may start to unwind its support for the economy.

The S&P 500 fell 1.2 percent Thursday, after selling accelerated in the final hour of trading. The benchmark index is still up 14.7 percent for the year.

“It’s not really surprising that we’re seeing a weaker September because historically its the worst month on average,” said Jay Pestrichelli, CEO, of investment firm ZEGA Financial. “Unfortunately, there’s not a lot of information to glean for October from it.”

The S&P 500 fell 51.92 points to 4,307.54, and is now 5.1 percent below its all-time high set on Sept. 2.

The Dow Jones Industrial Average fell 546.80 points, or 1.6 percent, to 33,843.92, while the Nasdaq slid 63.86 points, or 0.4 percent, to 14,448.58. Small company stocks also lost ground. The Russell 2000 index fell 20.94 points, or 0.9 percent, to 2,204.37.

All the sectors in the S&P 500 ended in the red Thursday, with technology stocks, banks and and a mix of companies that provide consumer goods and services accounting for much of the pullback.

More than 90 percent of the stocks in the index fell.

The broader market stumbled through September as investors tried to get a clearer picture of the economy’s path amid inflation concerns and uncertainty about how COVID-19 will continue to impact industries and consumers.

Weak signals for economic growth continued Thursday as the Labor Department reported that unemployment applications rose for the third straight week. The Commerce Department upgraded its estimate of economic growth during the second quarter to 6.7 percent, but they expect growth to to 5.5 percent during the third quarter.

Inflation concerns that had been weighing on the market earlier in the year returned in September as a wide range of companies issued more warnings about the impact of rising prices on their finances. Sherwin-Williams and Nike are among the many companies that have warned investors about supply chain problems, higher raw material costs and labor issues.

Inflation will likely remain the key worry hanging over the markets for the rest of the year, Pestrichelli said.