Stock Market Analysis for September 15, 2024

As we head into the new trading week, let’s review the market performance from the previous week (September 9-13, 2024). The U.S. markets experienced volatility driven by several key events, including inflationary concerns and geopolitical tensions.

Market Recap

• Dow Jones Industrial Average closed at 34,500, down 1.2% for the week.
• S&P 500 finished at 4,430, a decline of 1.5%.
• Nasdaq Composite ended at 13,800, dropping 2.0%.

Key Events Impacting the Market Last Week

1. Inflation Data Released: Consumer Price Index (CPI) data showed a 0.4% rise in August, higher than anticipated. This has reignited fears of aggressive Federal Reserve interest rate hikes.
2. Geopolitical Tensions: Increased tensions in the Middle East caused oil prices to spike, impacting market sentiment negatively.
3. Earnings Reports: Some major corporations, including tech giants, reported lower-than-expected earnings, which weighed on investor confidence.

Upcoming Events to Watch

• Federal Open Market Committee (FOMC) Meeting: Scheduled for September 26, 2024, the market will be focused on signals regarding interest rate adjustments.
• Upcoming Economic Data Releases: Retail sales and housing market data are set to be released, which will further influence market sentiment.
• Tech Sector Earnings: Microsoft and Apple are forecasted to report earnings next week, with significant potential impacts on the tech-heavy Nasdaq.

Recommendations for Monday Opening

Buy Recommendations:

1. SPDR S&P 500 ETF Trust (SPY): Given current valuations, this ETF is advised for long-term investors looking for exposure to diversified U.S. equities.
2. Invesco QQQ Trust (QQQ): With a potential rebound in tech stocks post-earnings, consider adding this ETF to your portfolio.
3. Exxon Mobil Corp (XOM): Given the rising oil prices, XOM appears favorable due to its strong fundamentals in the energy sector.

Sell Recommendations:

1. NVIDIA Corporation (NVDA): High valuation makes it a candidate for profit-taking, especially given its recent performance.
2. Tesla, Inc. (TSLA): Volatility in EV stocks and potential supply chain issues may make it wise to minimize exposure.

Conclusion

As we look into the week ahead, investors should remain cautious and monitor the upcoming economic data closely. The FOMC meeting will be crucial for understanding the trajectory of interest rates and market sentiment. Staying diversified and keeping an eye on earnings reports will be key strategies moving forward.