Markets hit new highs mid-week and then fell to close out August trading. Will September sink hopes of additional highs or are things beginning to level out?
Monday
S&P 500 0.43% | NASDAQ 0.22%
Markets started in the red on Monday in anticipation of tech stock earnings announcements and inflation data. Most data were focused on the housing market with lower building permits and at-par New Home Sales.
Tuesday
S&P 500 0.41% | NASDAQ 0.44%
Markets erased losses from Monday as Consumer Confidence came in higher than forecasted. A flurry of buying activity ensued in tech stocks, in particular. This came ahead of the much-anticipated Nvidia (NVDA) earnings on Wednesday afternoon.
Wednesday
S&P 500 0.24% | NASDAQ 0.21%
The S&P500 broke through its past record as other indexes gained ground as well. The “tech wave” continued as optimism around revenue has been positive. Interestingly, this was not led by Nvidia as trading was muted leading to its earnings, which came after hours.
Thursday
S&P 500 0.32% | NASDAQ 0.53%
More gains, more record highs. GDP from the 2nd quarter was revised, significantly, higher. Responses from investors were positive to the artificial intelligence environment because of the Nvidia earnings report. Shares of Nvidia were down on the day and the S&P 500 still managed to climb. This is impressive as Nvidia makes up 8% of the index at this point.
Friday
S&P 500 0.64% | NASDAQ 1.15%
The equity market surge stalled on Friday as inflation data came in relatively flat. In most circumstances, this would be interpreted as a good thing. Markets, however, weren’t about to wait-and-see as August trading ended.
Conclusion
S&P 500 0.10% | NASDAQ 0.19%
This week was heavy on sentiment in the technology sector, which can swing the most on a week-to-week basis. Major indices that are weighted to the mega-Large Cap companies produced the biggest gains. The flat weekly performance showed that the record high levels were just not sustainable. Not to mention that the month was concluded before a holiday weekend. September may shape up to be much of the same if history is any indication. The end of the third quarter has a habit of pulling back after months of summer gains. There is a case to be made that we may just reach a plateau, at least in the short term.
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