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Dow, SPX Score Record Highs Ahead of Rate Cut Decision

Investors have high hopes of a substantial rate cut following the FOMC's meeting

Deputy Editor
Sep 17, 2024 at 12:16 PM
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Wall Street sports a solid midday lead, as investors unpack retail sales data and the Federal Open Market Committee (FOMC) kicks off its two-day policy meeting. According to the CME Fed Watch tool, a large chunk of respondents are predicting a rate cut of 25 basis points, though many are still hopeful for a 50 basis point cut.

Earlier hitting its second consecutive intraday record high, the Dow Jones Industrial Average (DJI) was last seen 178 points higher and pacing for its fifth-straight win. The S&P 500 Index (SPX) and Nasdaq Composite (IXIC) are higher as well, with the former also logging a record high and on track for its seventh-straight daily gain.

Continue reading for more on today's market, including:

  • Which sectors will benefit from the U.S. Presidential Election?
  • Why Jefferies is bearish on this solar stock.
  • Plus, why call traders love MBLY; Airbnb stock's mixed analyst note; and Accenture's damning delay.

Midday Market Stats September 172024

U.S.-listed shares of Israeli-based driver-assistance technology developer Mobileye Global Inc (NASDAQ:MBLY) are 5.8% lower at $12.08 after Intel (INTC) left the firm out "the next phase" of its "transformation." Intel owns 88% of Mobileye, and Bloomberg reported earlier this month that Intel considered options for its stake in the company as a component of its overhaul. Call traders are blasting MBLY in response, with 26,000 bullish bets crossing the tape so far -- 6 times the average intraday volume -- against just 1,109 puts. Year to date, the equity is down 72.6%.

Airbnb Inc (NASDAQ:ABNB) stock is outperforming on the Nasdaq today, even after a mixed analyst note. Specifically, Bernstein cut its price target on ABNB to $155 from $174, but maintained its "outperform" rating, saying that it it still sees a "structural opportunity for ABNB as lodging demand outpaces hotel supply," despite underestimating "the cost of tapping this opportunity as it needs to be delivered in new markets." Bernstein's new price target is a 25.4% premium to Airbnb stock's current perch, with the equity last seen 5.2% higher at $123.65 -- though it still sports a 9.5% year-to-date deficit.
ABNB Chart September 172024
Meanwhile on the SPX, Accenture Plc (NYSE:ACN) stock is underperforming, last seen 4.4% lower at $338.72. Shares are brushing off a price-target hike to $405 at Citi and an investment into artificial intelligence (AI) startup Martian, after Bloomberg reported the firm plans to delay the bulk of its staff promotions by six months so it can gain "better visibility of our clients' planning and demand." Though it came into the session higher, ACN just breached its year-to-date breakeven mark, now down 2.3% in 2024.

 

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