The S&P 500 gained 1.45% on Tuesday after a drop in monthly jobs openings raised expectations of a pause in interest rate hikes for the upcoming September 19-20 meeting. This is the biggest single day gain for the S&P 500 since the beginning of June.
The Labor Department'S Job Openings and Labour Turnover Survey (JOLTS) showed that the number of job openings stood at 8.827 million in July, failing for the third straight month and signaling easing of labour market conditions.
The Nasdaq Composite gained 1.74%, scoring its strongest session since July 28, and both the S&P 500 & Nasdaq Composite both closed above its 50 daily moving averages.
According to the CME FedWatch Tool, traders now price in a 86% chance of no hike at the September 19-20 meeting, and a 14% chance of a 25 bp hike. This is mostly in line with the recent remarks from Fed Chair Jerome Powell at Jackson Hole that the Fed will be data dependent and raise rates if inflationary pressures still persist.
Sharing 2 favourites at support
Meta recently bounced off after testing support at $276, it currently is still under valued, with fair value at $311.
Google has managed to find support at $126, which coincides at the 40 exponential moving average. It's fair value is at $161.
A seasonally weak September awaits
As the markets attempt to close off a weaker August on a strong note, do note that September tends to be a weaker month for the markets on average.
September tends to be weak for the S&P 500 (source: Carson Research)
The interesting view I take is that if the market expects a weak September to look for buy the dip opportunities, perhaps the support that the market made at 4,330 in August could be the temporary bottom in this market pullback, which currently has only retreated by around 5.89% from July 27's high of 4,607.07 to August 18's low of 4,335.31. A pullback is defined as a retreat of less than 10%, while a decline of 10% to 20% is a correction, and a decline of more than 20% is a bear market.
Comments
Really sad to see this stock going back up. Facebook made Covid happen. Now we printed all that money. Basic necessities like food are sky high now and people are buying this stock. Pathetic
Investors were relieved that the Federal Reserve did not raise interest rates by 75 basis points, as some had feared. Instead, the Fed raised rates by 50 basis points, which was in line with expectations.
The rally in the stock market today is a sign that investors are becoming more optimistic about the economy.
Meta is worth $2,000.00.
No steak for old man… Meta has no mercy today and everyday….
Meta is a takeover target, because we have 3 1/2 billion users.