Stock futures are little changed after tech sell-off drags S&P 500 to worst day since August

Published On Sep 3, 2024, 6:02 PM

The article reports that equities fell sharply on September 4, 2024, with the S&P 500 declining by 0.16% and the Nasdaq Composite by 0.3%, indicating investor anxiety. Bank of America noted that investors sold off stocks at the fastest rate since 2020, led by institutional investors, while the job market showed signs of cooling as job openings fell below expectations. Furthermore, companies like Zscaler and Dollar Tree faced disappointing earnings reports, causing significant stock price drops. Conversely, defense stocks like Lockheed Martin and RTX reached all-time highs amid low market volatility. Economic growth is reported to be softening, with the Fed's Beige Book indicating a cooling labor market and price stabilization. Additionally, there is speculation about potential interest rate cuts by the Federal Reserve, as investors grapple with mixed signals concerning economic news and its implications for stock performance.

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Stock Forecasts

AI prediction results, not representative of any investment advice.

DLTR View DLTR chart on TradingView

Negative

With significant selling pressure observed in stocks like Dollar Tree following disappointing earnings, and Zscaler's prediction falling below analysts' expectations, these stocks are likely to continue their downtrend. Institutional selling, coupled with a cooling labor market, indicates bearish sentiment in the market.

LMT View LMT chart on TradingView

Positive

Lockheed Martin and RTX have consistently performed well in a low-volatility context, indicating strong demand for defense stocks. Given recent highs and continued government focus on defense spending, the path appears positive for these stocks.

SPY View SPY chart on TradingView

Positive

The Fed's potential rate cuts could provide a favorable environment for stocks generally, particularly for sectors that benefit from lower borrowing costs. However, given current investor sentiment and inflation concerns, caution is warranted.

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