Evening Market Recap - Wednesday, 25-Sep

US equities were higher for the week, with both the S&P 500 and Nasdaq setting new fresh all-time highs today, and the Nasdaq locking in five straight sessions of gains. China stimulus, Micron earnings, and August core PCE were the big stories this week. The global easing cycle was in the headlines with the SNB delivering its third consecutive rate cut and flagging the potential for further easing, while the probability of an ECB rate cut in October picked up as well.

US equities were higher in Thursday trading as stocks rebounded from Wednesday's mostly lower session. A number of bullish updates included much better than expected results and guidance from MU, while broader AI secular growth theme also supported by NRG, ACN updates. Initial claims of 218K below consensus, lowest since May, while continuing claims in line. Durable goods orders beat.

US equities were mostly lower in Wednesday trading, though ended off worst levels. Nothing really new today as market continues to wait for NFP next Friday and start of Q3 earnings. August new home sales declined less than expected m/m, with July revised higher. 

US equities finished higher in Tuesday trading, ending near best levels after a fairly uneventful afternoon. September consumer confidence came in below an upwardly revised August, with the present situation and expectation indices both lower m/m. September's Richmond Fed manufacturing index slipped m/m, with employment a weak spot.

US equities were mostly higher in fairly quiet, rangebound Monday trading. September flash manufacturing PMI slipped to 47 from 47.9 in August, below the 48.5 consensus. A busy week of Fedspeak lies ahead, with Bowman, Kugler, Williams, Barr, Cook and Collins all on tap.

US equities were higher for the week, with the S&P setting a new fresh all-time high on Thursday (its 39th record close of the year) before trimming gains on Friday. After months of anticipation, the Fed this week opened up its long-expected easing cycle with a 50 bps rate cut, matching expectations as represented by futures pricing but coming against broad analyst consensus forecasting only 25 bps. August retail sales were slightly positive vs expectations for a decline, with analysts pointing to favorable weather and solid back-to-school shopping trends.

US equities finished higher in Thursday trading, ending not far from best levels. A big rally for stocks today following yesterday’s 50 basis point Fed rate cut., which saw the S&P 500 hit a fresh record close. In macro news, initial claims came in below consensus, falling to its lowest level since May.

US equities finished lower Wednesday, ending near worst levels in choppy post-FOMC trading, with the Dow Jones, S&P500, and Nasdaq closing down 25bps, 29bps, and 31bps respectively. Monetary policy pivot was the big story today with the Fed opting for a more aggressive 50 bp rate cut. While the Street seemed to largely be in the 25 bp camp, the market was leaning toward 50 bp. August housing starts and building permits both came in ahead of consensus.

US equities finished largely mixed in Tuesday trading. Another quiet session ahead of tomorrow's FOMC meeting. Today's August retail sales report was a bit stronger than expected whereas previews suggested a weaker report could have tipped the scales more conclusively toward a bigger cut. Fed pivot and economic soft landing still seen as the main driver of the bullish narrative. 

US equities finished mostly higher in Monday trading in a quiet session after stocks caught a big bounce last week. It was a largely uneventful session as the market waits for the Fed's rate-cut decision on Wednesday. In macro news, the New York Fed's Empire manufacturing survey for September unexpectedly flipped positive for first time since November 2023.