Marketbites: Peloton Plummets, Markets Rise
Updated: Sep 27, 2022
Portfolio Manager Commentary:
Stocks rose sharply Thursday after a strong push in the last hour of trading. The Nasdaq led the way with a 1.67% gain, the S&P followed right behind rising 1.41%, and the Dow finished up 0.98%; lagging behind due to a weak performance by Salesforce. Overall, investors remained focused on monetary policy and are prepping for this morning's appearance from Jerome Powell at the Jackson Hole conference.
Aside from Jackson Hole’s conference, Nobel Prize economists have been convening in Lindau, Germany for their 7th annual meeting. Carolynn Look and Simon Kennedy were on the ground for Bloomberg and provided a quick rundown of what some of the world's ‘finest minds’ are thinking about the economic outlook.
Peloton stock fell 18.32% yesterday after announcing a quarterly loss of $1.2 billion. This downfall comes right after Peloton stock had soared more than 20% higher on Wednesday when it announced a partnership with Amazon to sell its fitness equipment and apparel on Amazon’s platform. Prior to this move, Peloton had a strict direct-to-consumer sales approach through its website and physical showrooms.
Chart of the Day:
Although passively-managed ETFs still dominate the market share of assets at $9.74 trillion, assets in actively-managed ETFs continue to grow at a rapid pace. Investors have funneled a net $71.4 billion into the funds so far this year.