S&P 500, Dow Jones gain amid inflationary concerns, debt ceiling debate

NEW YORK, Sept. 29 (Reuters) – Wall Street strengthened on Wednesday on a partial rebound from the previous day’s sell-off, with remarks by US Federal Reserve Chairman Jerome Powell and the ongoing debate over the cap debt limiting earnings.

The S&P 500 Index (.SPX) and Dow Jones Industrial Average (.DJI) advanced, but the Nasdaq Composite (.IXIC) closed lower as Treasury yields halted their ascent. Defensive sectors took the lead as investors sought stability in a volatile market.

All three remain on track to post monthly declines, with the S&P 500 barometer recording a seven-month winning streak.

“The same story we’ve seen for a few weeks,” said Oliver Pursche, senior vice president at Wealthspire Advisors in New York City.

“Investors are concerned about three things: the possible decrease in bond purchases by the Fed, inflation continuing with President Powell saying it will last longer than initially expected, and the issue of the debt ceiling. that Congress is grappling with. “

Powell, speaking at a European Central Bank event, expressed frustration with lingering supply chain issues that could keep inflation high for longer than expected. Read more

The stock market strengthened following his remarks.

“Powell has been very good at officially breaking the news that everyone knows is coming,” Pursche said.

Quarrels continued on Capitol Hill over government funding as Friday’s deadline to prevent a shutdown approached, with growing concerns over a credit default in the United States. Read more

U.S. Treasury yields paused after rising in recent days as the debt ceiling debate unfolded in Washington.

The Dow Jones Industrial Average (.DJI) rose 90.73 points, or 0.26%, to 34,390.72; the S&P 500 (.SPX) gained 6.83 points, or 0.16%, to 4,359.46; and the Nasdaq Composite (.IXIC) lost 34.24 points, or 0.24%, to 14,512.44.

Of the top 11 sectors in the S&P 500, materials (.SPLRCM) suffered the largest percentage decline, with utilities (.SPLRCU) leading the way with a gain of 1.3%.

Boeing Co (BA.N) supplied the largest lift to the Dow Jones after the successful test of the 737 MAX by the Chinese aviation regulator. The shares of the aircraft manufacturer rose 3.2%. Read more

Discount retailer Dollar Tree Inc (DLTR.O) jumped 16.5% after increasing its buyout clearance from $ 1.05 billion to $ 2.5 billion.

Drugmaker Eli Lilly & Co (LLY.N) gained 4.0% on Citigroup’s rating upgrade to “buy” from “neutral.”

The advancing issues outnumbered the declines on the NYSE by a ratio of 1.26 to 1; on the Nasdaq, a ratio of 1.34 to 1 favored the declines.

The S&P 500 posted seven new 52-week highs and two new lows; the Nasdaq Composite recorded 38 new highs and 151 new lows.

The volume on the US stock exchanges was 11.42 billion shares, compared to an average of 10.45 billion over the last 20 trading days.

Reporting by Stephen Culp; Additional reporting by Devik Jain in Bangalore; Editing by Richard Chang

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