US stocks declined at the opening on Wednesday, as Wall Street took a break following a dramatic two-day rally that brought the major averages beyond 2022 lows hit last week.
Early in the morning, the Dow Jones Industrial Average dropped 275 points, or 0.9%, while the S&P 500 fell 1%. The heavily tech-focused Nasdaq Composite fell 1.3%.
The benchmark S&P 500 experienced its highest back-to-back rise in more than two years with a 5.7% increase over the previous two days prior to Wednesday’s movements.
Ryan Detrick of Carson Group notes that this increase represents the strongest beginning to a new quarter since Q2 of 1938.
The Dow Jones Industrial Average rose 1,500 points since Monday, bringing the index back above its crucial 30,000 milestone and lifting it out of a bear market.
As of Tuesday’s close, it was now only 18% behind its most recent high. Over the same two days, the highly technological Nasdaq Composite rose 5.6%.
According to economic statistics, the U.S. economy added 208,000 jobs in September, according to the ADP’s private employment report.
Following a 22% increase on Tuesday when Tesla CEO Elon Musk appeared to agree to buy the social media site for his initial suggested price of $54.20 per share, Twitter shares fell 2.5% at the start of the session. Days before he was scheduled to be deposed as part of Twitter’s lawsuit, the bid was made.
The US dollar index also tacked on after Tuesday’s sixth straight loss, and US Treasury rates tacked on after retreating across the board.
Although the beginning of a new month and quarter gave markets a respite from the vicious selling that occurred in September in both US stocks and bonds, many strategists are doubtful the rally can sustain momentum. Officials are still on track for further policy tightening and that the coming earnings season is anticipated to be dismal.
