5MRD

Wall Street Working Off Monday Selloff

Japan's Nikkei, Warren Buffett, and Big Tech weakness contributed to a choppy week

Managing Editor
Aug 9, 2024 at 12:10 PM
facebook X logo linkedin


Monday's massive global selloff made a lasting impression on Wall Street all week. While stocks frantically fought back off those lows, all three major indexes were unable to string together consecutive wins during the next four days. Despite encouraging jobs data, a host of upbeat earnings reports, and a stabilizing "fear gauge," only the S&P 500 was able to sneak into the black for a weekly win, albeit marginally.   

Notes on a Selloff

Warren Buffett dumping Apple (AAPL) played a role in the Monday move, as did Japan's Nikkei meltdown. Not even large cap giant Nvidia (NVDA) was spared, while crypto stocks were hit especially hard. The silver lining is the drawdown has tech stocks like Broadcom (AVGO), Intel (INTC), and the sector heavyweights at intriguing entry points. 

Earnings Try to Take the Sting Out of Monday

Once the dust settled on Monday, there was still a slew of post-earnings reactions to unpack throughout the week. Electric vehicle (EV) laggard Lucid Motors (LCID) and alternative energy underperformer finally found their sparks. Airbnb (ABNB) and Under Armour (UAA) moved in different directions, while health-focused restaurant stock Sweetgreen (SG) is giving off Chipotle-in 2018 vibes. 

There was also some movement amongst beverage stocks, while sports betting has enjoyed an Olympics-level boost during a typically slow sports season. 

New Month, New Stocks to Target

Looking ahead, Senior Quantitative Analyst Rocky White provided some much-needed context to this disastrous start to August. And in the wake of Monday's carnage, Senior V.P. of Research Todd Salamone's comments about range-based trading proved prophetic. As far as the next market-moving event, keep an eye on July's consumer price index (CPI) reading due out next week. 

 

The SEC Moves to End the $25,000 Day Trading Barrier

For years, this rule kept most traders on the sidelines. Now, the door is opening to a whole new wave of active traders.

Dynamite Day Trading Signals helps you hit the ground running with up 2 options trade alerts per week, built to capture fast-moving opportunities. 

+149% in the last 3 months*

👉 Sign up now to receive the next trade

MR content page
 
 
 
 

Follow us on X, Follow us on Twitter