U.S. stocks were little changed Tuesday to start a holiday-shortened week as September trading kicked into high gear.
The Dow Jones Industrial Average traded marginally higher, while the S&P 500 slipped 0.1%. The Nasdaq Composite lagged, falling 0.3%. Luckin Coffee gained 7% while Helius Medical Technologies, Inc. Surged 44%
Over the extended holiday weekend, Goldman Sachs cut its recession odds to 15% and said it anticipates the Federal Reserve skipping a rate hike at its policy meeting later this month.
Investors could be looking at a challenging month ahead for stocks as September kicks into full gear. September historically marks the weakest month for equities, and investors will be sifting through economic reports—including fresh inflation data—ahead of the Fed’s September policy meeting. Central bank policymakers will have a two-day meeting starting Sept. 19 and announce their interest rate decision Sept. 20.
Still, some technical indicators have given investors hope last week as the Dow and the Nasdaq notched their best performances since July, and the S&P 500 registered its best week since June.
Traders last week also weighed new signs of a slowing economy and easing pricing pressures. The latest U.S. nonfarm payrolls report showed the unemployment rate rose to 3.8% in August, reaching its highest level in more than a year. And, in a sign of positive short-term momentum, the major indexes broke above their respective 50-day moving averages this past week.
“Investors are feeling more optimistic because we’re back in an ascent mode and upward trend,” Sam Stovall, chief investment strategist at CFRA, told CNBC last week. He added, “At least in the near term, I think that the U.S. equity markets could continue to climb even in the face of a relatively challenging month.”
