The Nasdaq Composite rose 0.8% on Tuesday, marking its second-biggest one-day gain this month. Oracle and Broadcom were the standout performers, topping the S&P 500. These technology giants bounced back from recent declines, underscoring investor confidence in the tech sector.
A giant “sell the news moment?” #Semiconductors had their worst week since the pandemic as the #StockMarket gets stuck below its summer highs. Here are some key patterns and events to watch. $AVGO $NVDA $AAPLhttps://t.co/PoUKKtI1VC
— TradeStation (@TradeStation) September 9, 2024
However, JPMorgan Chase, Goldman Sachs, and Synchrony Financial were responsible for much of the pessimism plaguing the market.
Energy sector the decisive laggard today and remains in last place both MTD and YTD; REITs at top of leaderboard today but still way behind YTD … small caps struggled relative to large caps with Russell 2000 essentially flat vs. S&P 500’s 0.4% gain pic.twitter.com/RXpGtSotAU
— Liz Ann Sonders (@LizAnnSonders) September 10, 2024
Despite receiving positive news from the Federal Reserve, investor sentiment was dampened by warnings from Ally Financial regarding consumer stress and JPMorgan advising tempered expectations for net interest income. The next big test for markets will likely be the release of consumer inflation data on Wednesday, followed by producer-price numbers on Thursday.
These reports are key to understanding the Federal Reserve’s plans for interest rate adjustments. A lower-than-expected inflation figure could signal that the central bank’s fight against soaring prices is nearing its end.
Nasdaq boosted by tech optimism
Cons Discr and Industrials were top performers today, but strength was mostly widespread except for Comm Serv … small caps lagged behind large caps as Russell 2000 Value fell (index is struggling most YTD with a 1.9% gain) pic.twitter.com/zEhnw1TyTG
— Liz Ann Sonders (@LizAnnSonders) September 9, 2024
#MarketAlert | Paint stocks in Focus: Kansai Nerolac up over 1.5%#StockMarket pic.twitter.com/1fHhmUC7CM
— ET NOW (@ETNOWlive) September 11, 2024
In the bond market, the 2-year yield hit a two-year low, while the 10-year yield declined for a sixth consecutive day, marking a new 52-week low. Nevertheless, potential risks loom with the presidential election on the horizon. Both Kamala Harris and Donald Trump have proposed substantial spending plans, which could increase the supply of Treasuries in the market and potentially drive yields higher.
Oil futures set new yearly lows influenced by weak Chinese import data and a less optimistic OPEC demand outlook. WTI settled down 4.3% at $65.75 a barrel and Brent fell 3.7% to $69.19 a barrel, the lowest levels since December 2021. In the cryptocurrency space, State Street Global Advisors and Galaxy Asset Management announced three new actively managed crypto-focused ETFs aimed at investing in companies within the cryptocurrency, digital asset, and blockchain industries.
Tuesday’s market dynamics highlighted the ongoing tension between tech optimism and financial sector woes. While the Nasdaq enjoyed a significant boost from technology shares, the Dow struggled due to the performance of big banks. Investors now turn their attention to forthcoming inflation data and political developments for further direction.
