US: Stocks end higher, ending losing streak

WALL Street stocks scored modest gains on Monday (Sep 25) as worries about a possible US government shutdown and lofty interest rates limited the bounce following recent weakness.

Briefing.com pointed to investor sentiment “that the market is due for a bounce” after all three major indices fell the last four days.

But Washington is bracing itself for a potential government shutdown as hardline Republicans in the House of Representatives block key spending bills.

Moody’s warned that a government shutdown this weekend would have negative implications for the country’s top-tier credit rating.

The Dow Jones Industrial Average edged up 0.1 per cent at 34,006.88.

The broad-based S&P 500 gained 0.4 per cent to 4,337.44, while the tech-rich Nasdaq Composite Index advanced 0.5 per cent to 13,271.32.

Analysts have also cited the elevated level of US Treasury yields as a drag on equities, along with worries over the China property sector after developer Evergrande announced that it would be unable to carry out a restructuring plan.

Entertainment companies were mixed after the Writers Guild of America announced a tentative deal with studios. Disney slipped 0.3 per cent and Warner Brothers Discovery tumbled 4.0 per cent while Netflix gained 1.3 per cent.

Boeing gained 0.6 per cent despite announcing it reached an agreement to sell 18 Dreamliner 787-10 to Air Canada, with an option for another 12.

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3M fell 2.3 per cent after disclosing that it idled PFAS “forever” chemicals operations at a facility in Belgium, which could affect deliveries to customers.

The manufacturing giant said it is “unable to predict the ultimate scope and extent” of any negative impact on operations. AFP