MW Dow, S&P 500 aim to snap 5-session skid, climb at Monday's open
By Steve Goldstein and Mark DeCambre
U.S. stock indexes on Monday rose, putting the Dow Jones Industrial Average and S&P 500 on track for the first positive finish in six sessions, as Wall Street attempts to claw back from the worst weekly decline in nearly three months for much of the broader market.
What's happening
Last week, the Dow industrials dropped 2.2%, the S&P 500 lost 1.7% and the Nasdaq Composite retreated by 1.6%. For both the Dow and the S&P, it was the worst week since the period ending June 18, and they both dropped for five consecutive sessions.
See:When the Fed finally steps back, can the U.S. stock and bond markets stand on their own legs?
What's driving markets
There weren't any major developments either on the economic or corporate front, ahead of more fireworks on Tuesday, when consumer price data will be released and Apple Inc. $(AAPL)$ will unveil its new suite of upgraded products.
Supply-chain worries as well as the delta variant of coronavirus were two factors behind last week's stock-market declines.
"Throughout the pandemic, vaccination has been key to both lifting social restrictions and local market performance," wrote Seema Shah, chief strategist at Principal Global Investors, in a note.
"In the United States, where the S&P 500 is up more than 20% YTD, an early and aggressive vaccination rollout has allowed for the full reopening of its economy," the strategist wrote.
Meanwhile, investors have remained on edge as valuations have been perceived as lofty and due for a pullback.
Read:Risk of 'hard' stock-market valuation correction is growing, says Deutsche Bank -- here's why
An investor survey conducted by Deutsche Bank found more than two-thirds expecting at least a 5% decline in stocks by the end of the year. The same survey found the biggest risks to the market are new variants that bypass vaccines, and higher than expected inflation or bond yields.
"While the U.S. recovery is likely to continue, investors should expect that additional boosts from vaccination momentum will be harder to achieve," Shah wrote. "Strong earnings are now key to the sustainability of the bull market," the analyst said.
On the public health front, U.S. Surgeon General Dr. Vivek Murthy said President Joe Biden will announce new steps to slow the spread of the virus ahead of the U.N. General Assembly session that is scheduled to start on Tuesday, Reuters reported
That report comes as the daily average of new cases in the U.S. over the past seven days eased to 145.724 as of Sunday, down from a recent peak of 166,105 on Sept. 1 and 7% less than what it was two weeks ago, according to a New York Times tracker.
-Steve Goldstein
Which companies are in focus
How are other assets faring?
$(END)$ Dow Jones Newswires
September 13, 2021 09:56 ET (13:56 GMT)
Copyright (c) 2021 Dow Jones & Company, Inc.