#StockMarket #FederalReserve #SeptemberStocks
Today, September 2, 2024, the stock market witnessed a mix of anticipation and caution as traders returned from the Labor Day holiday. Despite the significant anticipation surrounding Nvidia's earnings announcement and a crucial update on inflation this week, the movements in the stock market were relatively calm, especially considering the fluctuations experienced throughout August.
JPMorgan Strategists Warn of Rate Cut Impact
JPMorgan Chase & Co. strategists, led by Mislav Matejka, expressed concerns that a potential Federal Reserve rate cut might not necessarily boost the stock market. Matejka emphasized that any policy easing would be in response to slowing growth, making it a "reactive" reduction. He also highlighted the historical trend of September being the worst month for US stocks, with the S&P 500 declining 4.2% on average over the past five years.
Upcoming Stock Splits
Several companies are set to undergo stock splits this week. Notably, ARCA Biopharma (now Oruka Therapeutics) will execute a one-for-12 reverse stock split on September 3, while Matinas Biopharma will implement a one-for-50 reverse stock split on the same day. White River Bancshares Co. will execute a two-for-one stock split on September 4, and Draganfly Inc. will undergo a one-for-25 reverse stock split on September 5.
September's Historical Performance
Historically, September has been a challenging month for traders. Bonds, stocks, and gold have typically suffered losses as traders reassess their portfolios after the summer break. The S&P 500 Index and Dow Jones Industrial Average have had their biggest percentage losses since 1950 in the month of September. Bonds have slid in eight of the last 10 Septembers, while bullion has dropped every time since 2017.
Market Performance Today
In India, benchmark equity indices Sensex and Nifty hit fresh all-time closing high levels, tracking foreign fund inflows and a rally in the US markets. The US rate cut hopes and renewed foreign fund inflows are fuelling the recent rally in domestic equities.
Key Economic Data
Today, the Indian rupee declined, tracking weakness across other major Asian currencies, while investors looked for data to gauge the pace of monetary policy easing by the Federal Reserve. Key economic data releases include the Caixin Manufacturing PMI from China, the HSBC Manufacturing PMI from India, and the Final Manufacturing PMI from the Eurozone and the UK.
Company News
Maithan Ferrous Private Ltd. commenced operations at its new Ferro Alloy plant in West Bengal, marking a significant step towards operational readiness. The International Carbon Exchange Pvt Ltd. signed an 'Issuer Agreement' with the International Tracking Standards Foundation and Evident EV Ltd. Additionally, NCC secured orders worth ₹1,236 crore in August 2024.
Broker Recommendations
Broker recommendations included a "Sell" call on Relaxo Footwears and a "Buy" call on Ugro Capital, citing its 38% growth in total income and 44% growth in interest income in Q1-FY25.
In conclusion, today's market reflected a mix of anticipation and caution as traders navigated the historical challenges of September. The upcoming stock splits and key economic data releases will continue to shape market sentiment in the coming days.
Leave a Reply