Stocks fell Tuesday as September’s selling pressures took hold of Wall Street following gains seen in the previous session. Immunovant shares surged 68% in morning trading on Tuesday, after the drug developer said its antibody treatment succeeded in an early-stage trial.
JPMorgan Chase CEO Jamie Dimon warned interest rates may need to rise further to tamp down inflation, comments that added to bearish sentiment Tuesday. Bank stocks fell in the premarket, with the SPDR S&P Regional Banking ETF falling 0.7%. Wells Fargo & Company shares dropped more than 1% in the premarket, while Morgan Stanley fell nearly 1%.
Those moves would add to the market’s losses for the month. Entering Tuesday’s session, the Nasdaq Composite was down 5.4% in September, while the S&P 500 and Dow had lost 3.8% and 2.1%. Among the catalysts pushing stocks lower this month is the Federal Reserve warning that it sees fewer rate cuts next year. The news pushed the benchmark 10-year Treasury yield to levels not seen since 2007.
Investors this week are also grappling with negotiations in Washington, as lawmakers hope to avert a government shutdown that could take place as early as Oct. 1 if Congress doesn’t agree on a spending bill.
Upcoming seasonal market tumult could present a window for investors. Though October is known as the “jinx month” because of the 1929 and 1987 crashes, it also has a reputation as a “bear killer,” according to the “Stock Trader’s Almanac.”
“While October tends to be among the more volatile months of the year, it’s also the month where we usually see great buying opportunities, because it’s just before November and December, which are seasonally strong periods of the year for the markets,” said Mary Ann Bartels, chief investment strategist at Sanctuary Wealth.
Wall Street is coming off a winning session, with the major averages snapping four-day losing streaks.
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