September 11th Market Overview

September 11th Market Overview (no fluff)

Author

J.L. Bernstein
September 11, 2024

In partnership with

Happy Wednesday everyone.

As we reflect on the solemn anniversary of September 11th, we're reminded of the resilience of our nation and its markets.

I’m loving the strong week so far, inflation data not horrible! CPI data came in today for Aug…. PPI data is coming in tomorrow.

Lets dig in…

Executive Summary

  • The Nasdaq is up over 1.5% as the market rebounded from inflation-driven sell-off

  • Tech stocks led recovery, with Nvidia up around 7.5%

  • S&P 500 up 0.8%, Dow added 59 points, showing mixed performance across indices

  • Core inflation slightly higher than expected, impacting Fed rate cut expectations

Market Overview

We’re witnessing a volatile trading session today as investors take in the latest inflation data. After an initial sell-off, the market has rebounded strongly, particularly in the tech sector. The Nasdaq Composite has surged 1.8%, while the S&P 500 is up 0.8% and the Dow has added 59 points or 0.1%.

Key Market Drivers

  1. Inflation Data: Core CPI rose 0.3% in August, above the expected 0.2%, tempering expectations for aggressive Fed rate cuts.

  2. Tech Rebound: Semiconductor stocks are leading the market recovery, with Nvidia up 7.5% and AMD gaining over 4%.

  3. Fed Rate Expectations: Traders now price in an 85% chance of a 25 basis point rate cut at the next Fed meeting.

  4. Bank Stocks: After initial weakness, major banks have rebounded and are trading marginally higher.

Stock Spotlight

  • Nvidia (NVDA): Surged approximately 7.5%, leading the tech sector recovery.

  • AMD (AMD): Gained more than 4.1%, contributing to semiconductor strength.

  • American Express (AXP): Rose 2.9%, buoying the Dow after positive economic stability remarks.

  • Petco (WOOF): Skyrocketed around 34%, on track for a record increase despite missing revenue estimates.

  • GameStop (GME): Plummeted over 15% after disappointing sales and a proposed stock offering.

Other Magnificent 7 Updates

The VanEck Semiconductor ETF participated in the tech rally with a 4.5% gain. Other tech giants contributed to the Nasdaq’s rebound.

Other Notable Company News

  • Uranium stocks surged, with Cameco Corp. jumping 6.4% on supply concerns following Russian statements.

  • Dave & Buster’s stock popped more than 13% after beating earnings estimates.

  • Viking Therapeutics rose 7% following JPMorgan’s initiation with an overweight rating.

  • Trump Media & Technology fell 13% following the presidential debate.

Sector Watch

Sector

Symbol

% Change

Technology

XLK

+3.25%

Consumer Discretionary

XLY

+1.25%

Communication Services

XLC

+1.04%

Materials

XLB

+0.16%

Industrials

XLI

+0.11%

Utilities

XLU

+0.31%

Energy

XLE

-0.91%

Consumer Staples

XLP

-0.92%

Financials

XLF

-0.51%

Healthcare

XLV

-0.36%

Real Estate

XLRE

-0.28%

Bond Market

Treasury yields have started to trend downward, responding to data showing cooling inflation. Mortgage rates hit a six-week low at 6.29%, potentially supporting economic activity in the housing market.

Policy Watch

The Federal Reserve’s upcoming meeting on September 17-18 is crucial. Following today’s inflation report, traders are now pricing in an 85% chance of a 25 basis point interest rate reduction.

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