The Dow Jones Industrial Average and S&P 500 fell for a third straight day on Wednesday as investors reassess the economic growth outlook following a smooth ride in the market so far this year.
The Dow fell 68.93 points to 35,031.07 and the S&P 500 dipped 0.1% to 4,514.07. The technology-heavy Nasdaq Composite fell nearly 0.6% to 15,286.64, dropping for the first session in five.
The 30-stock average closed in the red for its third trading day in a row. On Tuesday, the Dow fell more than 260 points, adding to Friday’s losses after a disappointing August jobs report. September’s outlook also remains clouded by the coronavirus delta variant.
Shares of Coinbase fell 3.2% after the cryptocurrency exchange revealed it received a notice of possible enforcement action from the Securities and Exchange Commission. Coupa Software fell 4.2% despite its better-than-expected quarterly financial results.
Many investors are bracing for volatility in September, one of the seasonally weakest months of the year. Price swings could make a comeback, especially with the S&P 500 up more than 20% this year without a single 5% pullback.
“We see a bumpy September-October as the final stages of a mid-cycle transition play out,” Morgan Stanley chief cross-asset strategist Andrew Sheets said in a note. “The next two months carry an outsized risk to growth, policy and the legislative agenda.”