Marketbites: Market Looks to Regain Ground
Portfolio Manager Commentary:
Stocks rose Monday to kick off the final trading week of August, with Wall Street looking to regain ground amid a month of losses. All three indexes have lost ground in August, with the S&P 500 shedding 3.4%. The Nasdaq and Dow have slipped about 4.5% and 2.8%, respectively. Monday’s rally was broad: Ten of the 11 sectors in the S&P 500 were positive. Utilities ticked lower by 0.04%.
Meta and Apple traded slightly higher, while Nvidia added 1.8%. Shares of electric vehicle giant Tesla inched up 0.1%. Those moves come as tech tries to regain its footing late in August. The information technology sector of the S&P 500 is down 4.6% for the month. Outside of tech, shares of 3M popped more than 5% after a Bloomberg News report, citing sources familiar, said that the company was ready to settle lawsuits alleging some earplugs were faulty.
This week investors are eyeing the Fed’s preferred inflation gauge, the personal consumption expenditures index, due out on Thursday, followed by fresh non-farm payroll data Friday morning. As of Monday morning, traders were pricing a more than 20% chance that the Fed will raise rates again at its upcoming September meeting.
Chart of the Day:
One of the world’s hottest chip areas is dominated by a relatively little-known South Korean company: SK Hynix. The hardware powering the current AI craze is most closely linked with Nvidia. But packaged alongside Nvidia’s H100 processors are specialized memory chips that enable the mind-boggling number of nearly instantaneous computations behind AI applications. And SK Hynix is the main provider of the latest high-bandwidth memory chip for Nvidia’s top-line AI processor chip.
What else is happening:
Americans are bailing on their home insurance - read here
Companies are now quiet cutting - read here
Heating waters force change in some industries - read here