TheDrop Market Analysis, 9/6/24

The market, after a turbulent week on the decline, ended on Friday on a negative note.

This week marks the worst week for the "Big Three" index funds this year. The S&P 500 continued to shift downward by 1.7%, the Nasdaq by 2.6%, and the Dow by 1%. These index funds highlight the immense reaction of the markets following Friday's pivotal jobs report, which highlighted below-than-expected new payrolls and an underwhelming but expected unemployment rate. In the after hours, index futures fell by sometimes even larger margins.

It is clear that most of the market reacted negatively today, especially in big tech. AMD fell 3.7%, Nvidia fell 4%, Tesla fell 8%, Apple fell 0.7%, Google fell 4%, and Microsoft fell 1.6%. Broadcom, a massive communications company, fell 10% after reporting losses in revenue. Braze lost almost 20% of its share price after similarly detrimental Q2 losses. Tempus AI lost 9% of its share price, as its brief period of hype died down and AI stocks generally perform bad.

As outliers in today's sea of red, Gamestop emerges victorious, with a higher share price by 6%. A recent post by its key shareholder "Roaring Kitty" attracted attention from investors and subsequently instilled buying pressure.

These overall bad results today and this week add on additional pressure to the Fed to cut rates. Now more than ever, rate cuts are very necessary in ending the less business-friendly environment and end the bear market once and for all.