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- August 26th Market Overview
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Happy Monday everyone, small red day today…. business as usual.
Lets dig in…
Executive Summary
The Dow briefly touched a new record high before pulling back slightly
Tech stocks experienced a sell-off, weighing on the S&P 500 and Nasdaq
Energy sector outperformed as U.S. crude oil surged over 3% on Libya production halt
Investors eagerly await Nvidia’s earnings report on Wednesday as a key gauge of AI market sentiment
Market Overview
Major indices showed mixed performance today. The Dow Jones briefly reached a new record high, gaining 0.1% to 41,235 points, before retreating. The S&P 500 slipped 0.3%, and the Nasdaq fell 0.9%, primarily due to weakness in the technology sector.
Key Market Drivers
Tech sector rotation: Investors appeared to be shifting out of tech stocks, with the S&P 500 energy sector rising over 1% while tech declined 1.5%.
Oil price rally: U.S. crude oil jumped more than 3% following reports of production halts in Libya.
Nvidia earnings anticipation: Traders are keenly focused on Nvidia’s upcoming earnings report as a barometer for the AI market.
Stock Spotlight
Nvidia (NVDA): Shares dropped 2% ahead of its pivotal earnings report on Wednesday.
PDD Holdings (PDD): Plummeted nearly 30% after disappointing Q2 results, on track for its worst day on record.
SolarEdge Technologies (SEDG): Fell about 8% following CEO Zvi Lando’s resignation.
Icahn Enterprises (IEP): Slid more than 6% after filing to sell up to $400 million worth of shares.
Other Magnificent 7 Updates
Apple (AAPL): Announced a September 9 event, expected to unveil new iPhone and Apple Watch models. Stock dipped less than 1%.
Other Notable Company News
Boeing (BA): Shares declined over 1% after NASA selected SpaceX to bring back two astronauts from the International Space Station.
BJ’s Wholesale Club (BJ): Rose more than 1% following an upgrade by JPMorgan to neutral from underweight.
Petrobras (PBR): Surged nearly 6% after an upgrade from Morgan Stanley.
Sector Watch
Sector | Symbol | % Change |
|---|---|---|
Consumer Discretionary | XLY | -0.84% |
Consumer Staples | XLP | +0.73% |
Energy | XLE | +1.23% |
Financials | XLF | +0.36% |
Health Care | XLV | -0.08% |
Industrials | XLI | -0.09% |
Materials | XLB | +0.34% |
Real Estate | XLRE | -0.01% |
Technology | XLK | -1.17% |
Communication Services | XLC | -0.10% |
Utilities | XLU | +0.63% |
Bond Market
The 10-year Treasury yield remained relatively stable, with no significant movements to report.
Policy Watch
Federal Reserve Chair Jerome Powell’s recent comments at Jackson Hole have paved the way for potential interest rate cuts. While he didn’t provide specifics on timing or magnitude, his remarks were interpreted as dovish by market participants.
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- JB
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Note: This newsletter is intended for informational purposes only.