September 6th Market Overview

September 6th Market Overview (no fluff)

Author

J.L. Bernstein
September 06, 2024

In partnership with

Happy Friday everyone.

I’m a little late today, I apologize. The market closed red with a nasty week for the bulls overall.

Lets dig in…

Executive Summary

  • S&P 500 down 4.3% in worst week since March 2023

  • Nasdaq down 5.8%, worst performance since 2022

  • August jobs report disappoints, sparking economic concerns

  • Goldman Sachs projects potential Fed rate cuts starting in September

Market Overview

US stock market experiences significant downturn:

  • S&P 500: -1.73% to 5,408.42, -4.3% for the week

  • Nasdaq: -2.55% to 16,690.83, -5.8% for the week

  • Dow Jones: -410.34 points (1.01%) to 40,345.41, -2.9% for the week
    Market sentiment mixed between poor economic data signaling deeper issues or catalyzing aggressive Fed intervention.

Key Market Drivers

  1. Weak August jobs report: 142,000 nonfarm payrolls added vs. 161,000 expected

  2. Tech sell-off amid economic worries

  3. Traders split on 0.25-0.50 point Fed rate cut in September

  4. Mounting growth concerns trigger risk asset reevaluation, especially tech

Stock Spotlight

  1. Broadcom (AVGO): -10% on lackluster current-quarter guidance

  2. Amazon (AMZN): -3.7% as investors ditch risk assets

  3. Alphabet (GOOGL): -4% in tech sell-off

  4. Meta Platforms (META): -3%+ in market downturn

  5. Nvidia (NVDA): -4%, -15% for the week (worst since Sept 2022)

Other Magnificent 7 Updates

  • Apple: TD Cowen suggests software ecosystem could drive faster AI app development vs. competitors

  • Microsoft: No significant news

  • Tech giants experience significant volatility; Nvidia has worst week since Sept 2022

Other Notable Company News

  • DocuSign (DOCU): +4% on Q2 earnings beat

  • Nio: +4% on JPMorgan upgrade

  • GameStop +6%, Chewy slight decline on social media activity

  • Charles Schwab acknowledges recent tech issues, promises fixes

Sector Performance

Sector

Symbol

% Change

Consumer Discretionary

XLY

-2.81%

Communication Services

XLC

-2.92%

Technology

XLK

-2.43%

Financials

XLF

-1.57%

Energy

XLE

-1.17%

Utilities

XLU

-0.94%

Healthcare

XLV

-0.41%

Consumer Staples

XLP

-0.31%

click me to get bigger


Bond Market Implications

Weakening economic data potentially supports future rate cuts. Investors may anticipate declining yields amid favorable trading conditions.

Policy Watch

  • Increased Fed scrutiny as officials emphasize need for rate cuts

  • NY Fed’s Williams: “appropriate to dial down” policy restrictiveness

  • Chicago Fed’s Goolsbee warns against prolonged high rates as job market weakens

  • Anticipation builds for upcoming meeting amidst mixed economic signals

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