Nvidia, Tesla, Apple Stocks All Had a Great Week. Bring On September.
Summary: Nvidia, Tesla, and Apple stocks had a great week as August ended on a strong note and Friday's jobs report provided a solid start to September.
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Posted 9/4/2023, 1:35:00 PM
barrons.com
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Despite Nvidia's strong earnings, stocks closed lower due to mixed economic signals and the decline of big tech stocks such as Tesla and Amazon.com. Investors are awaiting Jerome Powell's speech for insight into interest rates, while the 10-year Treasury yield climbed and Dollar Tree's stock fell.
The Dow Jones finished the week in the red as markets rebounded, while Fed Chair Jerome Powell suggested another interest rate hike may be necessary; mortgage rates rose for the fifth straight week, cutting into homebuyers' purchasing power; initial unemployment claims dropped to 230,000; and existing-home sales fell in July but prices rose for the first time in five months.
Stocks around the world are starting the week on a positive note, despite the possibility of higher U.S. interest rates, with U.S. futures pointing to a modest boost for indexes at the opening bell.
Stocks started the final week of August on a positive note, but September is historically a bad month for stocks and analysts are warning of more turmoil ahead for the market.
U.S. stocks begin the final week of August with a positive start, Goldman Sachs sells its personal financial management unit, Microsoft emphasizes the need for human control over artificial intelligence, Google plans to license solar and environment data, Nvidia is hailed as the world's most valuable chipmaker, and analysts offer mixed views on the strength of the U.S. consumer and the future of the retail sector.
Nvidia's market cap rose in August due to strong profit forecasts, while other tech giants like Apple and Microsoft saw declines, and Berkshire Hathaway and Tencent had mixed performances.
September has historically been the worst month for stocks, but this year may be different as the excitement around AI, cash on the sidelines, and Apple's new iPhone could potentially drive positive market performance.
The stock market ended the week on a positive note, with gains in mega-cap tech stocks like Apple, Amazon, and Microsoft helping the Nasdaq Composite avoid a fifth straight loss, while the Dow Jones and S&P 500 also had slight gains; however, all three benchmarks closed the week in negative territory.
September historically has been a challenging month for stocks, but reduced concerns about a recession, signs of a potential shift in Fed policy, and positive sector trends point to the possibility of strategic investment opportunities this year.
Nvidia, the semiconductor giant, has experienced a 10% decline in their stock this month, leading to a $180 billion decrease in market capitalization, attributed to the "September effect," although it remains the best performer in the S&P 500 due to the rise of AI and ChatGPT.