Stocks rose on Monday to start the new month and quarter, bouncing from last week's lows which pulled the S&P 500 and Nasdaq to close out their first three-quarter losing streak since 2009 and the Dow to post its first similar period of losses since 2015. The Dow Jones Industrial Average rallied nearly 800 points, while the S&P 500 and Nasdaq Composite climbed 2.5% and 2.2% higher, respectively.
Here's how the market settled on Monday:
S&P 500 Index
Dow Jones Industrial Average
Nasdaq Composite Index
In the news on Monday, Credit Suisse
This move on the backend raised questions about Credit Suisse's financial stability. Last week, Credit Suisse announced it was exploring potential sale of assets and certain business units as part of a strategic plan it will be issuing later this month.
However, the stock pared its losses from the session, rising over 2%, after Citigroup
"This Is Not 2008," wrote Andrew Coombs in a research note on Monday. "We would be wary of drawing parallel with banks in 2008 or Deutsche Bank
Elsewhere, Tesla
In economic news, the Institute for Supply Management's (ISM) reported Monday that its manufacturing purchasing managers' index (PMI) fell to 50.9 in September from 52.8 in August, putting only slightly in expansion territory. Beneath the headline, new orders and prices indexes fell to 47.1 and 51.7, respectively, with the latter falling to its lowest level since June 2020.
"The U.S. manufacturing sector continues to expand, but at the lowest rate since the pandemic recovery began," said Timothy Fiore, chair of the ISM Manufacturing Business Survey Committee, in a statement. "Following four straight months of panelists' companies reporting softening new orders rates, the September index reading reflects companies adjusting to potential future lower demand."
Wall Street is coming off a brutal month and quarter, with pulled all three major averages into a bear market. Last month, the S&P 500 notched a 9.3% loss, while the Dow lost more than 8% and the Nasdaq dropped over 10%. For the third quarter, the S&P lost 5.3%, the Dow gave up 4.1%, and the Nasdaq closed 6.7% lower.
Those moves led to Citigroup becoming the latest institution to cut its S&P 500 year-end target, now projecting the broader market index to end 2022 at 4,000 from 4,200. Citigroup's chief U.S. equity strategist Scott Chronest also predicts the S&P will end next year even lower at 3,900 for 2023.