S&P 500’s Fourth Week of Losses Sounds Alarm on Economic Growth
- A rebound depends on fiscal stimulus, vaccine success
- Cyclicals replace tech in leading market’s latest leg down
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The September stock-market selloff that started as comeuppance for overheated tech shares evolved this week into a more troubling sign for the U.S. economy.
While stocks advanced Friday after lawmakers revived hopes for a fresh spending bill, the S&P 500 notched a fourth straight weekly drop. This time, it wasn’t Apple or Tesla that bore the brunt of selling. Companies with profits most closely tied to economic growth, like commodity producers and banks, led the drop. The recovery trade faltered, with airlines sinking the most since June and small-caps dipping below their average price for the past 200 days.