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
The stock market experienced a mixed day on Tuesday, with tech shares boosting the Nasdaq while bank shares dragged down the Dow. JPMorgan Chase fell 5% despite good news from the Fed, as Ally Financial warned of consumer difficulties. Investors are now focusing on upcoming inflation data, which could influence the Federal Reserve’s decision on interest rates.
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
Oracle and Broadcom were the top performers in the S&P 500, with investors taking advantage of recent declines in their stock prices. Oracle’s surge was partly due to demand for its AI infrastructure, which is helping revenue grow. On the other hand, banks such as JPMorgan Chase, Goldman Sachs, and Synchrony Financial put downward pressure on the S&P 500 amid concerns about trading revenue and consumer stress.
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
The upcoming release of the consumer price index on Wednesday and producer-price numbers on Thursday will be crucial in gauging the pace at which the Federal Reserve may bring down interest rates.
Tech sector lifts Nasdaq higher
Lower-than-expected inflation could give the central bank confidence that its fight against high prices is nearing an end.
#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, yields are at their lowest levels in about two years, with the 10-year yield declining for six consecutive days. However, the presidential election introduces uncertainty, as both candidates have generous spending plans that could lead to increased Treasury supply and potentially higher yields. State Street Global Advisors and Galaxy Asset Management announced three new actively managed crypto-focused ETFs on Tuesday, aiming to invest in companies within the cryptocurrency, digital asset, and blockchain industries.
Oil futures set new lows for the year as weak Chinese import data and a slight reduction in OPEC’s demand outlook added to market jitters. WTI settled down 4.3% at $65.75 a barrel, and Brent fell 3.7% to $69.19 a barrel, their lowest levels since December 2021. In conclusion, the tech sector continues to show resilience, with the Nasdaq leading the market gains, while the banking sector drags the Dow down amid concerns about consumer stress and trading revenue hits.
Investors are now turning their focus to upcoming inflation data and its implications for Federal Reserve policy, while also keeping an eye on political developments and their potential economic impacts.
