The Washington Post Sunday
Stocks drop on warnings about valuation, growth risks
U.S. equities dropped as concerns mounted over valuation risks and slowing growth.
The S&P 500 fell 1.7 percent in the four-day span to 4,459 after two weeks of gains. It was the biggest weekly loss since June. The Dow Jones industrial average declined 2.4 percent while the Nasdaq dropped 1.4 percent.
Investors returned from the long Labor Day weekend with growing worries about the U.S. recovery. The S&P 500 fell the Friday before the holiday on disappointing payroll numbers and then declined every day thereafter, leading to the longest streak of daily losses since February. Strategists at several Wall Street banks turned cautious on U.S. equities, noting high valuations and potentially weak economic data to come.
“Fall has arrived,” said Lauren Goodwin, economist and multi-asset portfolio strategist at New York Life Investments. “There’s been a lot of uncertainty around what would happen in the fall or after Labor Day because unemployment benefits are expiring, kids are going back to school; meanwhile, the delta variant cases appear to be peaking, but we’re uncertain what that looks like.”
The Treasury will sell 13- and 26-week bills Monday. It will sell four- and eight-week bills Thursday.