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Market Moves Yesterday
S&P 500 @ 5,408.42 ( ⬇️ 1.73%)
Nasdaq Composite @ 16,690.83 ( ⬇️ 2.55%)
Bitcoin @ $55,071.26 ( ⬇️ 0.82%)
Hey Scoopers,
Happy Monday! Are you ready for an exciting newsletter?
👉 Are meme stocks back?
👉 U.S. crude oil dips further
👉 Bitcoin remains under pressure
So, let’s go 🚀
Market Wrap
Equity indices dipped on Friday, with the S&P 500 index notching its worst week since March 2023, as investors assessed the fallout from a weak August jobs report and ditched leading tech stocks.
Megacap tech stocks tumbled as investors worried about the health of the U.S. economy. In fact, the tech-heavy Nasdaq index is now down 10% from all-time highs and has re-entered correction territory.
A drop of over 10% from all-time highs is called a correction; if the decline is over 20%, it is called a bear market.
While Amazon slid 3.7%, Meta Platforms lost 3%. Chip stocks such as Broadcom tumbled 10% following its lackluster current quarter guidance, while peers including Nvidia and AMD dropped about 4% each.
Notably, the VanEck Semiconductor ETF fell by 4% and posted its worst week since March 2020.
Fresh August jobs data added fuel to concerns of a slowing labor market. A bout of weak data sparked worries about the economy’s health, spooking markets, and denting risk appetite in recent weeks.
Trending Stocks 🔥
Nio - Shares of the Chinese EV maker popped 3.5% after a JPMorgan upgrade from “neutral” to “overweight.” The investment bank expects the stock to recover after a tough year.
Super Micro Computer - The AI server maker shed almost 7% after JPMorgan downgraded the stock from “overweight” to “neutral”, as uncertainty persists regarding regulatory compliance.
DocuSign - Shares of the online signature company rose 4% after it reported revenue of $736 million and earnings of $0.97 in fiscal Q2, above estimates of $727 million and $0.80 per share.
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GameStop Is On the Move
Meme stock leader Roaring Kitty resurfaced online on Friday with another cryptic image of a cartoon character dropping a stuffed dog that resembles Chewy's logo.
The post on social media platform X sparked action in shares of the online pet retailer and the original meme stock- GameStop.
In July 2024, Keith Gill, the individual behind the Roaring Kitty account, disclosed in a regulatory filing the purchase of nine million Chewy shares, indicating a stake of 6.6%.
Chewy is connected to GameStop through its founder, Ryan Cohen, who became CEO of GameStop in 2023 and has been leading a turnaround in the brick-and-mortar video game retailer.
Gill is known to be a champion of GameStop and has been stirring up trading in the video game company over the past few months.
In mid-June, Gill disclosed a stake of 9.001 million GameStop shares after exiting his massive call options position. It is unclear if he sold his GameStop bet to fund the purchase of Chewy.
U.S. Crude Oil is Falling
Last Friday, U.S. crude oil hit its lowest level since June 2023, putting the benchmark on pace for its worst week in nearly a year. OPEC+ has failed to reassure the market about the global supply and demand balance.
U.S. crude hit a low of $67.17 on Friday and shed 8% for its worst week since October. The Brent global benchmark has fallen 9.8% this week.
OPEC+ delayed plans to increase production by 180,000 barrels per day until December as oil sold off steeply. The output hike will bring about 2.2 million barrels per day back onto the market through the end of next year.
Those barrels will return to the market as oil demand slows in China due to the world’s largest crude importer rapidly transitioning to electric vehicles.
Bitcoin Prices Remain Volatile
Bitcoin avoided a significant sell-off over the weekend and currently trades at around $55,000. The past week has been unkind to crypto investors as outflows gained pace amid weak macroeconomic data.
Source: Coinglass
According to Bank of America, it was the worst slew of crypto fund outflows since the bear market of 2022. Total weekly outflows totaled $600 million, the second-largest such outflow in the crypto industry's history.
Next, a bumper week of U.S. macro data precedes the all-important Federal Reserve interest rate decision on September 18th.
In the coming days, we will see numbers for the consumer price index and producer price index for August, as well as more unemployment figures.
Headlines You Can't Miss!
Boeing reaches labor deal, averts potential strike
A strong yen could replicate the carry trade unwind
China’s consumer inflation comes in below forecasts
DirecTV files FCC complaint against Disney
Tether invests $100 million in agriculture firm
Chart of The Day
Historically, September has been the worst month for stocks, and this year has been no different.
Since 1928, the S&P 500 index has declined on average in September, making it the only month with a negative average return. However, October saw the most +10% gains since World War II.
Last week, the S&P 500 and Nasdaq indices recorded the worst start to September since the dot-com bubble bust 23 years back.
More than 25 S&P 500 stocks are now down over 10% in the past week, which include:
Dollar Tree ⬇️ 20.4%
Albemarle ⬇️ 14.2%
Intel ⬇️ 14.1% and
Broadcom ⬇️ 14%
Meme of the Day
DISCLAIMER: None of this is financial advice. The newsletter is strictly educational and is not investment advice or a solicitation to buy or sell assets or make financial decisions. Please be careful and do your own research.