Daily Stock Market Report - September 2, 2024

Top Stock Market News

1. Nasdaq Futures Edge Higher Ahead of Crucial Jobs Report

The U.S. stock futures are edging up Thursday morning, signaling that stocks are continuing their momentum as September gets off to a start. Today, a lot of the attention will be on the initial jobless claims data and the August jobs report, which could provide clues about the Federal Reserve's next move on interest rates. Investors are closely watching the labor market data for any signs of cooling that could allow the Fed to ease up on its aggressive rate hike campaign.

2. Nvidia Surges 12% as Fed, Powell Pave Way for September Rate Cut

Nvidia, the semiconductor giant, saw its shares surge 12% on Wednesday after Federal Reserve Chair Jerome Powell's comments opened the door for a potential rate cut in September. Powell acknowledged that the Fed's efforts to tame inflation have made progress, but he also warned that more rate hikes could be necessary. Investors interpreted Powell's remarks as a signal that the central bank might slow its pace of rate increases, boosting technology stocks, particularly chip companies like Nvidia.

3. Dow Tumbles as America's Prices Keep Rising

The Dow Jones Industrial Average plummeted on Tuesday, suffering its worst day since June 2020, after key August inflation data ticked upward, surprising investors. The market is now worried that hotter-than-expected inflation will prompt the Federal Reserve to raise interest rates more aggressively, inflicting serious damage to the U.S. economy in the process. The consumer price index (CPI) report showed that prices rose 0.1% in August, defying expectations of a flat reading, reigniting fears of persistent inflationary pressures.

4. China's Zeekr Reveals Revenue Surge in Updated Financials Ahead of US IPO

Chinese electric vehicle maker Zeekr has updated its financials ahead of its planned U.S. initial public offering (IPO), revealing a significant surge in revenue. The company, owned by Geely Automobile Holdings Ltd, reported revenue of $1.5 billion for the first six months of 2024, a sharp increase from the $77 million it generated in the same period last year. Zeekr's updated financials come as it seeks to raise up to $1 billion in its U.S. IPO, which is expected to take place later this year.

Top Stocks to Watch

1. Boeing (BA)

Boeing, one of the largest U.S. defense contractors and a leading supplier of commercial aircraft, is a stock to watch in September. The company's shares have been on a rollercoaster ride lately, with investors closely monitoring the recovery of the aviation industry and Boeing's efforts to ramp up production of its 737 MAX and 787 Dreamliner planes. Any news or updates related to these programs could significantly impact Boeing's stock price.

2. Sarepta Therapeutics (SRPT)

Sarepta Therapeutics, a biopharmaceutical company focused on developing therapies for rare diseases, is expected to release pivotal data from its EMBARK clinical trial in September. Analysts at Bank of America have a "buy" rating and a $186 price target for SRPT stock, anticipating a positive readout from the trial, which could pave the way for a potential regulatory approval and boost the company's prospects.

3. Occidental Petroleum (OXY)

Occidental Petroleum, one of the largest U.S. oil and gas exploration and production companies, is a stock to watch as energy prices remain volatile. The company's shares have benefited from the surge in oil and gas prices, and investors will be keeping an eye on any developments that could impact the energy sector, such as changes in supply and demand dynamics or geopolitical tensions.

4. CSX (CSX)

CSX, a leading U.S. railroad company, is another stock to watch in September. The transportation sector is often seen as a barometer of economic activity, and CSX's performance could provide insights into the overall health of the economy. Additionally, any news or updates related to the company's operational efficiency, pricing, or growth initiatives could influence its stock price.

Stock Market Expected Movement

Based on the current market conditions and the economic data expected in September, analysts are divided on the stock market's potential movement. Some experts believe that the market could continue its upward trajectory, buoyed by the Fed's potential shift towards a more dovish stance and the resilience of the U.S. economy.

However, others caution that the market's recent rally might be short-lived, as concerns over inflation, interest rates, and geopolitical tensions could weigh on investor sentiment. The August jobs report and other economic indicators scheduled for release in September could significantly impact the market's direction.

Overall, market volatility is expected to persist in September, and investors are advised to exercise caution and carefully evaluate their portfolios. Diversification and a long-term investment strategy remain crucial in navigating the ever-changing market conditions.