Tech leads S&P, Nasdaq higher as banks drag on Dow

Published On Sep 10, 2024, 4:06 PM

US stocks experienced mixed performances, with the S&P 500 up about 0.5% and the Nasdaq gaining roughly 0.9%, while the Dow fell 0.2%. Key drivers included a notable drop in JPMorgan Chase shares by around 5% due to concerns over net interest income forecasts. The oil market also faced a decline, as prices fell after OPEC revised down its demand growth forecasts for 2024 and 2025, with West Texas Intermediate dropping to near $66 per barrel. Investors are particularly focused on an upcoming consumer inflation report which may influence Federal Reserve interest rate decisions. Additionally, upcoming earnings reports and political events, such as a presidential debate, are drawing attention.

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Stock Forecasts

XLEView XLE chart on TradingView

Negative

Oil prices are predicted to remain under pressure due to OPEC's reduced demand growth forecasts and macroeconomic concerns stemming from global demand uncertainties due to economic slowdowns in key markets like China. This overall bearish sentiment on oil could continue to impact energy stocks negatively, particularly those within the XLE ETF.

JPMView JPM chart on TradingView

Negative

JPMorgan Chase's recent declines signal potential ongoing weakness in the banking sector, particularly if their income forecasts remain pessimistic. This could reflect negatively on JPM stock and possibly impact other financial institutions as well.

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