The market came back a bit today with Fed Chair Powell commenting on continuing inflation. Yesterday, inflation spooked the market, but today taken as reassurance against too soon tapering. But the real issue keeping the market down is the debt ceiling debate going on in Congress as a shutdown looms on Friday unless there’s an agreement by then. A potential U.S. credit default is a scenario the markets don’t even want to think about.  With nerves fraying, volume remains above average at 11.4 billion. 

Wed  September 29, 2021  4:45 PM

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

By Stephen Culp

DJ: 34,299.99  -569.38         NAS: 14,546.68  -423.29        S&P: 4,352.63  -90.48      9/28

DJ: 34,390.72  +90.73          NAS: 14,512.44  -34.24          S&P: 4,359.46  +6.83       9/29

NEW YORK, Sept 29 (Reuters) - Wall Street ended firmer on Wednesday in a partial rebound from the previous day's broad sell-off, with remarks from U.S. Federal Reserve Chairman Jerome Powell and the ongoing debt ceiling debate keeping a lid on gains.  The S&P 500 index (.SPX) and the 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 the volatile market.  All three remain on course to post monthly declines, with the bellwether S&P 500 snapping a seven-month winning streak.

"The same story we've seen for a couple of weeks," said Oliver Pursche, senior vice president at Wealthspire Advisors, in New York.  "Investors are concerned about three things: the eventual taper of bond purchases by the Fed, ongoing inflation with Chairman Powell saying it's going to stick around longer than initially expected, and the debt ceiling issue that congress is grappling with."  Powell, speaking at a European Central Bank event, expressed frustration over persistent supply chain woes which could keep inflation elevated for longer than expected. read more  The stock market strengthened following his remarks.  "Powell has been very good at delivering the news officially that everyone knows is coming," Pursche said.  Wrangling continued on Capitol Hill over funding the government as the Friday deadline to prevent a shutdown approached, with mounting concerns over a U.S. credit default. read more  U.S. Treasury yields paused after a runup 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%, at 4,359.46; and the Nasdaq Composite (.IXIC) dropped 34.24 points, or 0.24%, to 14,512.44.  Of the 11 major sectors in the S&P 500, materials (.SPLRCM) suffered the largest percentage drop, with utilities (.SPLRCU) leading the way with a 1.3% gain.

Boeing Co (BA.N) provided the biggest lift to the Dow following China's aviation regulator's successful 737 MAX test. The planemaker's shares rose 3.2%. read more  Discount retailer Dollar Tree Inc (DLTR.O) jumped 16.5% after increasing its buyback authorization by $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."

Advancing issues outnumbered decliners on the NYSE by a 1.26-to-1 ratio; on Nasdaq, a 1.34-to-1 ratio favored decliners.  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.

Volume on U.S. exchanges was 11.42 billion shares, compared with the 10.45 billion average over the last 20 trading days.