Dow Jones futures experienced a slight rise on Sunday night, September 8, 2024, alongside S&P 500 and Nasdaq futures, as investors brace for a significant week ahead in the stock market. Key companies like Apple, Oracle, Palantir Technologies, Dell Technologies, and Tesla are expected to be in the spotlight due to various developments.
Main Points
Current Market Sentiment
The stock market is currently facing challenges, with fears surrounding the economy and the ongoing artificial intelligence (AI) boom. The previous week saw the S&P 500 and Dow Jones suffer their worst weekly losses since March 2023, while the Nasdaq experienced its most significant sell-off since January 2022, primarily driven by Nvidia’s stock decline. Tesla, which had a strong performance earlier in the week, saw its gains evaporate by Friday. Investors are advised to reduce their exposure to the market while keeping an eye on stocks that demonstrate relative strength and maintain crucial support levels.
Dow Jones Futures Update
On Monday, Dow Jones futures advanced by 0.2%, with S&P 500 futures climbing 0.25% and Nasdaq 100 futures rising 0.3%. The 10-year Treasury yield increased to 3.74%, and crude oil futures rose over 1%. Meanwhile, Chinese consumer prices saw a modest rise of 0.6% in August, with producer prices falling more than expected.
Focus on AI Stocks
The upcoming Apple iPhone 16 launch is a major event, set to showcase the tech giant’s first AI-enabled smartphone. This new device is anticipated to feature a new chip designed with the latest technology from Arm Holdings. Oracle’s earnings report is also due after Monday’s market close, with expectations that the company will highlight its advancements in AI. Palantir and Dell will join the S&P 500 index before the market opens on September 23, which has already led to a rise in both stocks. Palantir’s stock is nearing three-year highs, reflecting strong investor interest.
Upcoming Earnings and Economic Indicators
Investors will be closely watching the earnings reports from Oracle and the sales figures from Taiwan Semiconductor Manufacturing Company (TSMC) on Tuesday. These reports are expected to provide insights into the demand for AI technologies. Additionally, the Labor Department will release the consumer price index (CPI) on Wednesday, followed by the producer price index (PPI) on Thursday. Analysts are speculating that tame inflation readings could give the Federal Reserve the impetus to consider a significant rate cut in their upcoming meeting.
Apple iPhone 16 Launch
Apple’s “It’s Glowtime” event is set for Monday at 10 a.m. PT, where the company will unveil the iPhone 16 alongside new Apple Watches and AirPods. This launch is particularly critical as it marks Apple’s first foray into AI with its new Apple Intelligence features, which promise to enhance user experience significantly. However, there are concerns regarding the rollout of these features, particularly in the European Union, where regulatory challenges may limit availability.
The iPhone 16 is expected to feature improved camera capabilities, larger displays, and a new A-series chip. Analysts predict that the introduction of AI features could drive a new wave of upgrades among consumers, especially since many existing iPhones have not been updated in years.
Tesla and AI Developments
In the realm of Tesla, there are reports suggesting that the company may license AI models from Elon Musk’s xAI for its Full Self-Driving (FSD) software. However, Musk has denied claims of revenue sharing from Tesla’s FSD, which has raised questions about potential partnerships.
Market Outlook
The overall sentiment in the market indicates caution, with many analysts advising against significant stock purchases at this time. While defensive stocks may perform better, the majority of stocks tend to follow the overall market trends. Investors are encouraged to keep their watchlists updated, as stocks that show resilience during tough market conditions often lead the next uptrend.
