Day Traders Diary

9/25/23

The major averages opened lower, but rallied into the green by the close as we kick off this final week of trading for September. The Dow Jones Industrial Average rose 43 points after dropping 110 points on the open. The S&P 500 rose 17 points while the Nasdaq Composite rose 59 points.

Stocks have struggled this month as the Federal Reserve signaled higher interest rates for longer, sending bond yields rising. The benchmark 10-year Treasury yield has surged more than 30 basis points this month to 4.43%, at levels not seen since 2007.

The markets are also contending with a rally in crude oil and a winning streak in the dollar during the seasonally weak trading month.

The S&P 500 has fallen more than 4% in September, on pace for its second straight losing month and its worst month since December. The tech-heavy Nasdaq Composite is down 6% in September as growth stocks bore the brunt of the sell-off, also headed for its biggest monthly loss since December. The blue-chip Dow is off by a more modest 2% this month.

Investors are also closely monitoring progress on a budget resolution in Washington. Lawmakers over the weekend expressed few signs of movement on a deal that would keep the U.S. government funded for the remainder of the fiscal year. On Monday, Moody's Investors Service warned a shutdown would be a "credit negative" event for the U.S.