I think broadening of the markets will continue to happen if the Fed is done, says Jim Lebenthal
The Fast Money Halftime Report discusses the market rally, 'sell the news' reaction to earnings, and the stabilization of tech.
Posted 8/29/2023, 10:58:23 PM
cnbc.com
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Tech stocks led a rally in the stock market, with the Nasdaq Composite gaining 1.6% and the S&P 500 ending a four-day losing streak, despite the rise in Treasury yields; investors will be looking for clues about the US consumer spending and the economy as retailers' earnings reports are expected, and Federal Reserve Chairman Jerome Powell's speech at the Jackson Hole symposium is anticipated for indications on interest rates.
Wall Street's rally in stocks is expected to pause as investors await new data on jobs and GDP to determine whether the US economy has been impacted by Federal Reserve tightening.
Summary: The stock market shows signs of a rally, with major indexes surpassing the 50-day line and Treasury yields decreasing, growth stocks are leading, and software companies like Salesforce, MongoDB, and CrowdStrike reporting positive earnings; meanwhile, Amazon and Shopify announce a deeper partnership, and Tesla unveils an upgraded Model 3 while also lowering prices. Additionally, a near-perfect jobs report and tamed inflation data suggest that the Fed may not continue with rate hikes.
Western Digital's stock rallied due to positive Wall Street research notes and the possibility of a flash-memory-chip business merger.