Smaller companies in the Russell 2000 index are facing significant financial trouble due to a lack of access to corporate bond issuance and the inability to lock into low-interest long-term loans, potentially triggering a recession in the US and impacting larger companies.
The S&P Semiconductors Select Industry Index is showing signs of decline, which could have negative implications for the overall stock market.
Major stock market indexes dipped into negative territory on Wednesday, continuing Tuesday's losses, despite some positive news from August durable goods numbers. The Dow Jones, S&P 500, and Nasdaq all saw declines, with the Dow Jones now breaking its 200-day moving average.
The S&P 500 broke a four-week losing streak, but market breadth was poor and the small cap Russell 2000 fell into the red for the year, suggesting that higher interest rates are taking a toll on the economy and increasing the chances of a recession.
Major stock indices closed higher, led by the small-cap Russell 2000, as industries that previously lagged experienced gains, while bond yields remained elevated but stable and upcoming Q3 earnings reports from industry leaders are expected.
The stock market experienced losses as the S&P 500 and Nasdaq fell, while the Russell 2000 reached a 52-week low, and the 10-year Treasury yield increased; Meta stock, ServiceNow, and KLA Corp were affected by earnings reports, and several important economic reports are expected.
The Dow Jones Industrial Average and other stock market indexes experienced a sell-off, with the Dow falling 0.1% and the S&P 500 and Nasdaq also declining. Additionally, the small-cap Russell 2000 rebounded, while various stocks, including Apple, Microsoft, Meta Platforms, and Align Technology, experienced mixed performance.
