The tech-heavy Nasdaq Composite fell 1.12%, the S&P 500 dropped 0.6% and the Dow trimmed 0.39% on Wednesday. At the sector level, XLF and XLV led while XLY and XLK were the biggest laggards. Conforming to recent trends, Value and min vol. were outperforming factors on the day as they generally have been in 2024 when prices correct.
Commodities and Crude prices retreated, with the Bloomberg Commodities Index moving back down to a 96 handle. Crude prices were down >1% on the day on the WTI contract. Rates on the 2yr and 10yr Treasuries were near unchanged at 3.86% and 3.83% respectively.
Nasdaq 100 futures dropped 0.9% Wednesday night, and S&P 500 futures fell 0.5%, while Dow Jones futures remained stable. Nvidia shares fell about 7% in after-hours trading despite exceeding earnings expectations, as investors were disappointed by a smaller-than-expected beat and cautious future guidance. Nvidia, which recently exceeded a $3 trillion market cap, significantly impacts the broader market, comprising about 7% of the S&P 500.
Salesforce shares rose 4% after surpassing fiscal Q2 expectations and raising its full-year profit outlook, while CrowdStrike shares dropped over 2% after lowering its full-year outlook due to a global outage in July.
Nvidia, which recently exceeded a $3 trillion market cap, significantly impacts the broader market, comprising about 7% of the S&P 500.
Looking ahead, major consumer companies like Dollar General, Ulta Beauty, and Lululemon are set to report earnings Thursday, with Campbell Soup and Best Buy also on the schedule. Additionally, the July personal consumption expenditures price index will be released on Friday.
The market currently anticipates a rate cut at the September FOMC meeting, with a 63.5% chance of a 25-basis-point cut.
Eco Data Releases | Thursday August 29th, 2024
S&P 500 Constituent Earnings Announcements by GICS Sector | Thursday August 29th, 2024
NVDA: $100-115 is the likely accumulation zone
Consolidation since mid-June continues as strong results prove not strong enough for NVDA. The price gap higher in late May looks like a key pivot in the chart. That gap was filled in early August, we’d expect buyers to accumulate above that level.
Data sourced from FactSet Data Systems
