Weekly Buzz: What Pushed up Stock Prices Better than Rate Cuts? Government Stimulus!
Happy Friday, mooers! Welcome back to Weekly Buzz where we talk about the top ten buzzing stocks on moomoo this week! Comment below to answer the Weekly Topic question for a chance to win an award!
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Weekly Buzz
The week started out with all-time closing highs for the S&P 500 and Dow, and continued on that way until Thursday. Investors were pricing in rate cuts, but aside from the sudden onset of Chinese stimulus that spurred stocks higher, there were not many outlier stock surprises this week, and the $S&P 500 Index (.SPX.US)$ $Nasdaq Composite Index (.IXIC.US)$ and $Dow Jones Industrial Average (.DJI.US)$ indexes finished up just 0.70%-1% higher. The Russell 2000 fell 14 basis points over five days.
The Chinese Golden Dragon index $NASDAQ Golden Dragon China (.HXC.US)$ climbed nearly 23% for the week, and 11% Tuesday, the most since 2022.
In Macro, investors watched data and commentary roll in to judge against the FOMC's rate cut decision last week.
Monday, Atlanta Federal Reserve President Raphael Bostic said he voted for a 50-point cut because PCE inflation fell to 2.5% in July. The market also priced in S&P manufacturing PMI numbers, which came in lower at 57 compared to estimates of 58.6. Consumer sentiment took a sharp downturn in September with its largest drop in over three years, according to Tuesday's report by the Conference Board.
Federal Reserve governor Michelle Bowman talked Tuesday about her decision to dissent from last week's jumbo rate cut. She said a 50 basis point cut worried her; she thought it would signal economic weakness. Wednesday, Crude Oil Inventories were cut by 4.4M barrels around the US according to the EIA.
Thursday, GDP data came out and showed the economy grew at 3% in Q2. Friday, PCE inflation numbers showed that prices were growing at a slower pace. The regular PCE including energy and food prices grew by just 2.2%. Core PCE grew by 2.7%, and 0.1% year over year.
Michigan consumer sentiment also dropped Friday and showed respondents thought prices would climb at a rate of 2.7% in one year. Consumer confidence about the economy rose to a five-month high.
The next Federal Open Market Committee after the presidential election, on Nov 6-7.
Anyway, let's dive into the buzzing stocks this week:
Nvidia was falling on the last day of an eventful week for chip makers. According to Barron's, investors were afraid of delays of Nvidia's next-generation Blackwell chips. In early August, a report citing industry sources said volume shipments of the Blackwell B200 chip would be delayed for three months. Many on Wall Street are still bullish. Susquehanna analyst Christopher Rolland notes that its pricing still holds up well and that the investment case for Nvidia remains strong.
"Nvidia has become the world's de facto enabler of AI," Rolland wrote in a note Thursday.
@Ming1314: no reason Nvidia is the only one dipping when the rest of the market is going up
$Tesla (TSLA.US)$ climbed 4.94%, the highest on the Nasdaq 100 Monday. Seeking Alpha and Barrons attributed the climb to analysts' expectations of the firm's October 1st delivery release., Barclays analyst Dan Levy wrote Monday that he sees third-quarter deliveries coming in at about 470,000 vehicles, higher than the roughly 460,000 consensus estimate. Next week, tesla reports its delivaries on Tuesday.
@liquidityHunter: are the only mag 7 stocks that i wont short, the other 5 looks so s***
Micron reported earnings Wednesday that beat estimates, with Q4 adjusted EPS of $1.18 vs estimates of $1.12. For the 1st quarter looking ahead to 2025, the firm expects revenue of $8.5B-$8.9B vs estimates of $8.3B. The stock climbed 8% after hours, and flew 17% Thursday.
@blackkeymatch: Micron.. why did you climb high and then descend back to base camp.
SMCI fell 13% Thursday after a WSJ exclusive that it faces a Justice Department probe. The firm faced accounting and reporting issues this quarter after a short report, and the WSJ said the firm faces an investigation concerning the same issues. The stock hit a circuit breaker as it fell.
@Silverbat The Probe may end with insufficient evidence
$Trump Media & Technology (DJT.US)$ stock climbed this week. According to a regulatory disclosure published by Trump Media and Technology Group on Thursday, shareholders Andrew Litinsky and Wesley Moss sold nearly 7.53 million shares that would currently be worth roughly $100 million based on the stock’s last closing price.
@Stock_Drift: Trump Media Co-Founder Cashes Out of 4DJT for $100 Million... (Eh Tu Brute?)
According to momoo's own @Luzi Ann Santos, Intel shares advanced for a fifth straight session on Wednesday, rising 3.4% to $23.57 as of 3:25 p.m. Tuesday, the day's best performer on the $Dow Jones Industrial Average (.DJI.US)$. The chipmaker's gains outpaced the 2.1% rise in $NVIDIA (NVDA.US)$, and 2.7% advance for $Advanced Micro Devices (AMD.US)$.
Intel, which has lost 53% of its value over the past year is playing catch up with its peers. Over the weekend, Bloomberg reported that $Apollo Global Management (APO.US)$ has offered as much as $5 billion in equity-like investment in Intel. That came just days after the Wall Street Journal reported that San Diego-based chipmaker $Qualcomm (QCOM.US)$ approached Intel about a potential takeover.
@Lil Bagholder: Intel Unable to Tell Whether it Wants to Go Up or Down
7. $Bitcoin (BTC.CC)$ - Buzzing Stars: ⭐⭐⭐
Bitcoin surged to a one-month high on Monday, extending its rally after last week's significant Federal Reserve rate cut. FXTM Senior Market Analyst Lukman Otunuga highlighted that looser financial conditions could signal a favorable outlook for bitcoin bulls, driving increased demand for digital assets.
Bitcoin surged to a one-month high on Monday, extending its rally after last week's significant Federal Reserve rate cut. FXTM Senior Market Analyst Lukman Otunuga highlighted that looser financial conditions could signal a favorable outlook for bitcoin bulls, driving increased demand for digital assets.
Historically, Bitcoin has shown a cyclical performance, with certain months consistently delivering weaker or stronger returns. From 2013 to 2024, data reveals that September tends to be one of Bitcoin's weakest months, with average returns of -4.89%.
The Hang Seng Index in Hong Kong was up 4% in the afternoon Tuesday after China announced economic stimulus. Nio jumped 23% for the week.
@etyn100: p/e loss p/b 6.... why is it increasing? even the best of best scenario it should $6
Gamestop said that on Sept. 10 it had filed a prospectus supplement with the US Securities and Exchange Commission to offer and sell up to 20 million shares, according to MT newswires. the firm sold all $400 million in shares in about thirteen days, or ten trading sessions. Net proceeds will be used for general corporate purposes, the company said.
@liquidityHunter: looks like something going to happen soon ?
Chinese stocks were climbing all week, starting Tuesday following a reserve requirement cut from the central bank of China. The cut is set to inject approximately 1 trillion yuan ($140 billion) of liquidity into the banking system. In one day, $Tencent (TCEHY.US)$ climbed 12%. Chinese EV-maker $Li Auto (LI.US)$ surged 11%. $JD.com (JD.US)$ rose 13%, and $Alibaba (BABA.US)$, China's largest publicly traded company with a market capitalization of $209 billion, climbed 7%. An announcement about Alibabas Amazon Prime Day-like 'Singles Day' on November 11th also helped boost Chinese retailers. $Singles' Day Sales (LIST2998.US)$, a list created by moomoo climbed 4%. The stocks jumped after Alibaba said it would pour $5.7B into its holiday sale plans.
@InfiltradeR: Beast awakens from years of slumber. 🚀🚀🚀
Thanks for reading!
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Awards
Congrats to the following mooers whose comments were selected as the top comments last week!
Weekly Topic
What is your most anticipated event in the coming trading month? What are you going to do about it?
Comment below and share your ideas! We will select up to 15 TOP COMMENTS for a reward next week. Winners will get 200 points by next week, with which you can exchange gifts at Reward Club.
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Moomoo News and Community Manager
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HuatLady : Thanks for the rewards![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
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The most anticipated event for me is Tesla's "We,Robot" Robotaxi event on 10th October which could introduce groundbreaking advancements in autonomous driving and have a lasting impact on both Tesla's stocks and the broader market. While I plan to track investors' sentiments, review financials and set price alerts for timely decisions, my focus remains on long-term growth.
Short-term fluctuations don't concern me, as I see dips as opportunities to accumulate more positions and strengthen my investment in Tesla for the future. In the coming trading month, I also expect to receive dividends from some of my stronger stock holdings.
EZ_money :
102362254 : One of my most anticipated events in the coming month is definitely Tesla’s Robotaxi Event on October 10. This could have a big impact on both automotive and tech sectors. I plan to watch the event closely and adjust my investment strategy based on how the market reacts, either taking advantage of good news or managing risks.
HuatEver : I’m eagerly anticipating the release of the latest quarterly earnings reports from major tech companies in the coming trading month of October. These reports often set the pace for market trends and can provide valuable insights into the economic landscape. I will be closely monitoring market sentiment leading up to the releases. And, I’ll review my investment portfolio to ensure that it aligns with potential market movements adjusting my positions based on the new data.![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
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James 101542649 : Good
Stock_Drift : My most anticipated event in the next month is exactly that, how will the market act this October: We survived the August dip, the S&P has been handing out double digit haircuts (gains) with Financial and Communications sectors driving the bus. I think the federal reserve is still a bit of a crutch as they made terrible progress on inflation the first half of the year. The July CPI was 2.9% lowest since March 2021, I believe?
Rate cuts are most of the time good for stonk prices. So moving forward to October if you listen to chatter from Wall Street analysts they are very hopeful S&P 500 companies keep going with steady earnings and growth. (It is an election year in America so October stock prices could get clipped here and there as the election looms closer)
Stock Drift.
2024.
Lazy Cat Invests : The Tesla Robotaxi Event is of interest as it could potentially cause ripples or waves through the Automotive and Tech sectors. While many investors are keen to see the maturity and plan for Robotaxi, even more so on the latest FSD (Full Self Driving) capabilities, speculators may simply want to sell the news. Hence if the event is more about vision and talk without any showcasing of technology to convince investors, the share price may take a dip and affect the rest of the ecosystem. I would be cautiously watching this event to see if there is any opportunity to add positions.
Malik ritduan : ok
103132561 : More money circulating will push inflation higher
Eve Forever Gain : No one wants to be left with other options, everyone hopes the economy continues to grow.
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