TheDrop Market Analysis, 9/5/24

Following two market days of turbulence and neglectable, at best, growth, trends have continued today.

The S&P 500, the Nasdaq, and the Dow made little to no gains, even losses, today by very negligible margins, between 0.3% and 0.6%.

The tech industry also reported negligible, if any, returns. While Apple and Nvidia made small growth in day change, Microsoft and AMD reported losses. Tesla grew by a respectable 4% margin, but this is coming after the company witnessed the sharpest decline since its July earnings report this week. However, this strong growth could have been fueled by news of Elon Musk being approved by Donald Trump to work on an anti-establishment government organization if Republicans were to win in November.

Why is the market so dim today? The fact is straightforward: investors are anxious about a pivotal jobs report tomorrow. After months of lackluster job growth, and an overestimation of newly created jobs by over 800k, August's jobs report is even more important in highlighting the trend of the economy. If weak job creation is uncovered, it is certainly possible that the Fed will cut rates by an even larger amount than previously agreed upon.

Nio, an emerging battery producer, attracted attention today after skyrocketing in share price due to a strong earnings report and higher demand for EV batteries produced by the company.