Even in the case of a total collapse of US stocks, 9 stocks that shine with new record highs! Will they attract even more attention if there is a further decline of 0.5%?
The US stock market had a tumultuous start in September.During the first week of trading, the S&P 500 index fell by 4.3%, and even the Dow Jones Industrial Average, which reached an all-time high at the end of August, fell by 2.9%. The Nasdaq 100 index, which represents tech stocks, fell by 5.9%, and the Philadelphia Semiconductor Index (SOX Index) fell by as much as 12%.
The uncertainty surrounding the US economy and the pace of interest rate cuts led to risk aversion selling.The biggest concern in the market is that the monetary policy of the Federal Reserve (FRB) may follow suit with the sluggish US economy.
However, September has historically been the weakest month in the US stock market. For example, when we look at the average monthly rise and fall rate of the S&P 500 index from 1960 to 2023, September is the lowest at -0.9%.
On the other hand, November's rate is the highest at 1.8%. It is suggested that there is a possibility of a recovery after the adjustment in September, following past jinxes. However, with the FOMC on September 17-18 approaching and the uncertainty surrounding the initial rate cut, it is difficult to determine at this point whether this year will follow the jinxed pattern.
In the options market, a 0.25% interest rate cut by the FOMC in September is fully priced in. As for a 0.5% interest rate cut, it is predicted with a 30% probability. After the employment statistics on September 6, the probability of a 0.5% interest rate cut has slightly decreased, but a 30% probability is not a negligible level in absolute terms.
Based on past experience, a 0.5% interest rate cut tends to be a "shock" to the market. According to data compiled by Bloomberg, since 1990, the performance of the S&P500 index has been the lowest when a 0.5% interest rate cut was implemented. The 0.5% interest rate cut suggests concerns about some issues in the economy, as pointed out by Bloomberg report.
Amid uncertainty about the US economy and the pace of interest rate cuts, US stocks seemed to be collapsing in general, but on September 6th, 9 stocks (note) reached their 52-week high. The list of stocks is as follows.
(Note: comprised of constituents from either the S&P 500 index, Dow Jones Industrial Average, Nasdaq 100 index, or SOX index)
The characteristics of the above 9 stocks can be summarized in one word.Defensive stocks. For example, in health care $Kenvue (KVUE.US)$ $Cooper Companies (COO.US)$ Processed food $General Mills (GIS.US)$ $Tyson Foods (TSN.US)$ $Conagra Brands (CAG.US)$ Communications giant $AT&T (T.US)$ Personal care giant $Procter & Gamble (PG.US)$ is.
Except for the latter two stocks, the stocks have risen by more than 15% in the second half of the year. These stocks tend to have relatively small market capitalization and are prone to large price fluctuations. In that sense, they are well-known as defensive stocks for general investors.AT&TandP&GLarge cap stocks like these may offer a greater sense of security.
A major telecommunications company in the United States. Through its subsidiaries and affiliates, it provides local and long-distance telephone services, wireless and data communications, internet access, internet protocol (IP) television, satellite broadcast television, etc.
A leading personal care products company in the United States. Its main products include detergents and cleaning products, paper products, beauty products, food and beverages, health care products, etc. It operates business worldwide.
Created on September 9, 2024, by market analyst Julie.
Source: moomoo Securities created from Bloomberg
Source: moomoo Securities created from Bloomberg
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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