All 11 sectors closed lower ahead of the Fed's next policy meeting


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Stocks fell Friday as investors wrapped up a volatile week ahead of the Federal Reserve’s policy meeting.

The Dow Jones Industrial Average slid 288.87 points, or by 0.83 per cent, to 34,618.24. At its lows, the index completely wiped out Thursday’s 332-point rally. The S&P 500 was lower by 1.22 per cent to 4,450.32. The Nasdaq Composite dropped 1.56 per cent to 13,708.33.

The Dow closed out a positive week, up by 0.12 per cent. However, the S&P 500 and Nasdaq both suffered a second straight week of losses, lower by 0.16 per cent and 0.39 per cent, respectively.

Adobe shares fell more than 4 per cent a day after the software firm posted better-than-expected quarterly results. Shares of Arm Holdings were lower by 4.2 per cent one day after its successful public debut.

Chip equipment makers Applied Materials, Lam Research and KLA Corp all dropped more than 4 per cent after Reuters reported TSMC had asked its major vendors to delay deliveries.

Nvidia dropped 3.7 per cent, Advanced Micro Devices lost 4.8 per cent and Broadcom and Micron Technology each fell over 2 per cent, pulling down the Philadelphia Semiconductor index down about 3 per cent for the session.

Stocks General Motors and Stellantis N.V. rose Friday, while Ford inched lower. Thousands of members of the United Auto Workers went on strike after failing to reach a deal with the automakers Thursday night.

Elsewhere, Lennar shares slid 2.5 per cent. The home construction firm posted third-quarter results that beat on the top and bottom lines late Thursday.

On the economic front, the University of Michigan’s consumer sentiment survey showed one-year inflation expectations dropped to 3.1 per cent in September, tied for the lowest since January 2021. Also, the five-year outlook fell to 2.7 per cent, matching its lowest since December 2020.

Wall Street is parsing through a mixed batch of economic data ahead of the Fed’s policy decision, set to be announced Sept. 20. The central bank is widely expected to hold rates steady next week, but traders will seek insight into how policy makers are thinking about inflation from here.

All 11 S&P 500 sector indexes declined, led lower by information technology, down 2 per cent, followed by a 1.9 per cent loss in consumer discretionary.
 
Futures

The SPI futures are pointing to a 0.6 per cent fall.

Currency

One Australian dollar at 7:25 AM was buying 64.37 US cents.

Commodities

Gold added 0.69 per cent. Silver gained 1.70 per cent. Copper fell 0.54 per cent. Oil gained 0.68 per cent.

Figures around the globe

European markets closed higher. London’s FTSE added 0.50 per cent, Frankfurt gained 0.56 per cent, and Paris closed 0.96 per cent higher.

Turning to Asian markets, Tokyo’s Nikkei gained 1.10 per cent, Hong Kong’s Hang Seng added 0.75 per cent while China’s Shanghai Composite closed 0.28 per cent lower.

On Friday, the Australian sharemarket closed 1.29 per cent higher at 7,279.

Ex-dividends

Credit Corp Group (ASX:CCP) is paying 47 cents fully franked
Cochlear Limited (ASX:COH) is paying 175 cents 70 per cent franked
Paragon Care Limited (ASX:PGC) is paying 0.6 cents fully franked
Qube Holdings Ltd (ASX:QUB) is paying 4.35 cents fully franked
Supply Network (ASX:SNL) is paying 28 cents fully franked
Veris Ltd (ASX:VRS) is paying 0.15 cents fully franked

Dividends payable

Computershare Ltd (ASX:CPU)
Dalrymple Bay Infrastructure Ltd (ASX:DBI)
HiTech Group Australia Ltd (ASX:HIT)
Infomedia Ltd (ASX:IFM)
Johns Lyng Group Ltd (ASX:JLG)
Tabcorp Holdings Ltd (ASX:TAH)

Sources: Bloomberg, FactSet, IRESS, TradingView, UBS, Bourse Data, Trading Economics, CoinMarketCap.

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