Wall Street drops on September worries, upcoming data
Tue September 3, 2024 7:04 PM
It was an encore of early August with all the indexes dropping like a rock from the outset and continuing all day long into deep 3-digit losses, the Dow down a whopping 626 points just as it was in early August. At the time they said that August was traditionally the worst month of the year for the market. Today they are saying that September is traditionally the worst month. The apparent if ignoble reason for the sudden sharp selloff may be attributed to today’s manufacturing report which showed output remained subdued since July’s 8-month low, ignoble because reduced output is good inflation news and rate-cut hopeful.
Today though it was taken as recessionary and thus a panic-trigger even though experts seem to agree that it’s mostly seasonal and that the “horrible month” scenario is merely a self-fulfilling prophesy. Nevertheless, the so-called Magnificent Seven megacap stocks all took a major hit, particularly the tech darling Nvidia which dove 10%, losing $279B in a single day, the biggest single day loss for a U.S. company in history. The VIX jumped 33% to 20.7, but keep in mind that we don’t start to really worry until it gets over 30. The odds are now roughly 2 to 1 for a ¼ point vs ½ point Fed cut this month. At 12.1 billion, volume has finally surpassed the 4-week average of 11 billion.
DJ: 41,563.08 +228.03 NAS: 17,713.62 +197.20 S&P: 5,648.40 +56.44 8/30
DJ: 40,936.93 -626.15 NAS: 17,136.30 -577.33 S&P: 5,528.93 -119.47 9/3
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