What happened in the markets : 26 August - 30 August 2024
Aries Yuangga, Wakil Penasihat Berjangka
As August draws to a close, the financial markets have shown a mixed bag of results, reflecting ongoing global uncertainties and domestic factors that continue to drive investor sentiment. This article recaps the key market activities for the week of August 26 to August 30, 2024, highlighting the top-moving stocks and what to expect in the upcoming week as we transition into September.
Last Week at a Glance
The final week of August saw heightened volatility in the markets. The S&P 500 dipped by 1.3%, weighed down by concerns over inflationary pressures and potential interest rate hikes by the Federal Reserve. Similarly, the Dow Jones Industrial Average slipped by 0.9%, while the Nasdaq Composite fell by 1.8%, driven by a sell-off in technology stocks. Global markets also reflected this cautionary stance. In Europe, the FTSE 100 closed down 0.6%, while Germany's DAX dropped by 1.1%. In Asia, Japan's Nikkei 225 slid by 0.7%, and China's Shanghai Composite Index saw a decline of 1.5%, amid concerns over the country's economic slowdown and ongoing property sector challenges.
Top movers & shakers🎢
Several individual stocks made headlines with significant price movements driven by a variety of factors, including quarterly earnings reports, analyst ratings, and strategic announcements. Among the notable movers were:
Dell (DELL) 🖥️: Dell's stock surged by 4.3% after releasing an earnings report that exceeded Wall Street's expectations. The company highlighted its strong performance in the AI sector, with COO Jeff Clarke stating that Dell is actively competing in and winning major AI deals. Dell's servers and networking revenue, particularly those related to AI, saw an impressive 80% annual increase.
Marvell Technology (MRVL) 📈: Marvell Technology's stock jumped by over 9% following a strong earnings report that beat estimates. The semiconductor company reported strong demand driven by AI, with data center revenue increasing by 92% year over year, which positively influenced investor sentiment.
Intel (INTC) 💻: Intel's stock rose by 9.5% after Bloomberg reported that the company might separate its product design and foundry business. Additionally, Intel is considering canceling some of its expansion plans, which contributed to the positive market reaction.
The Week Ahead: September 02 - 06, 2024
Looking ahead, the coming week is expected to be less hectic but still filled with significant economic data releases and corporate earnings reports that could influence market direction.
September 02: U.S. Manufacturing PMI (August) – This report will provide insight into the health of the manufacturing sector, which has been under pressure due to rising input costs and slowing demand.
September 05: U.S. Initial Jobless Claims – A key indicator of labor market strength, this data point will be closely watched as it could signal potential shifts in employment trends.
September 06: U.S. Nonfarm Payrolls (August) – Perhaps the most critical release of the week, the jobs report will offer a comprehensive view of the labor market, influencing Federal Reserve policy decisions.
Key Earnings Reports:
The earnings season continues, albeit at a slower pace compared to the previous week. Key companies scheduled to report include:
September 03, 2024:
Zscaler, Inc. (ZS) is expected to post strong earnings growth with an EPS estimate of 0.69, reflecting a 40.93% YoY growth.
Ascendis Pharma A/S (ASND) and GitLab Inc. (GTLB) are also set to report, with expectations focused on potential improvements in their respective markets.
September 04, 2024:
Copart, Inc. (CPRT) and Hewlett Packard Enterprise Company (HPE) will release their earnings. Copart is anticipated to show a slight growth in EPS, while Hewlett Packard Enterprise will be watched closely for any updates on its strategic direction.
September 05, 2024:
Broadcom Inc. (AVGO) is one of the most anticipated earnings reports. The company is expected to post a strong quarter with an EPS estimate of 1.20, reflecting a 15.46% YoY growth.
Samsara Inc. (IOT) and DocuSign, Inc. (DOCU) will also be in the spotlight, as investors look for signs of resilience in the tech sector.
Conclusion
The last week of August underscored the markets' fragility amid global economic uncertainties. As we move into September, investors will need to keep a close eye on upcoming economic data and earnings reports to assess the potential direction of the markets. With inflationary concerns and potential interest rate hikes on the horizon, the coming weeks could prove pivotal in shaping the rest of the year for financial markets.
Source:
https://www.schwab.com/learn/story/schwab-market-update
https://www.edwardjones.com/us-en/market-news-insights/stock-market-news/stock-market-weekly-update
*Disclaimer:
This information is provided for general information purposes only. Consider your investment objectives, financial resources and other relevant circumstances carefully before investing. This is not an invitation or an offer to invest, nor is it financial advice or a recommendation to buy or sell any investment.
