September’s notorious volatility has once again gripped the markets as cooling jobs data spurred Wall Street into its worst week of the year.
In August, the U.S. economy added 142,000 jobs — a rebound from July's disappointing 89,000 figure but below expectations of 160,000 and significantly lower than the average pace of 202,000 over the past year.
While the unemployment rate edged down slightly from 4.3% to 4.2% as expected — and wage growth exceeded estimates — these figures did little to sway market sentiment. Labor data released during the week simply failed to meet expectations.
As a result, traders are now placing a higher probability on the Federal Reserve cutting interest rates by 50 basis points rather than 25 basis points in September.
Semiconductors were hit by several headwinds, including reports of a potential antitrust investigation into Nvidia Corp. NVDA by the Department of Justice and disappointing guidance from major chipmaker Broadcom.
The Philadelphia Semiconductor Index, tracked by the iShares Semiconductor ETF SOXX, endured its worst week in over two years. Nvidia's shares extended their biweekly losses to over 20%.
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Tax Reform Impact
Goldman Sachs warns of potential S&P 500 earnings volatility under tax plans proposed by Kamala Harris and Donald Trump. Corporate tax changes could lead to significant swings in company profits, with implications for market performance, particularly in sectors sensitive to tax policy shifts.
Ford In-Car Ads
Ford Motor Co. F’s new patent suggests displaying targeted ads inside vehicles based on location data. The technology could offer drivers advertisements relevant to their driving routes, potentially creating new revenue streams while raising questions about privacy and user experience in connected cars.
iPhone 16 Event
A Bank of America equity analyst suggests Apple Inc.‘s AAPL imminent iPhone 16 event may drive stock prices higher, countering the usual “sell the news” trend. Anticipated innovations and strong demand could positively impact investor sentiment, with shares potentially benefiting from the product launch excitement.
Fake Ozempic Alert
Counterfeit Ozempic batches are flooding the weight loss market, posing serious health risks. Authorities are raising alarms as demand for the drug surges, increasing the circulation of these dangerous, unauthorized products worldwide.
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