As August came to a close with vigor and a robust Friday jobs report, the stock market enjoyed a favorable week leading up to Labor Day, setting an optimistic tone for September.
Historically, September has earned a dubious reputation as the weakest month for stocks, with the S&P 500 witnessing an average decline of 1.1% during the month since 1928.
However, as September dawns, several prominent stocks defy this trend, instilling hope among investors for a continuation of the recent bullish momentum.
Nvidia (NVDA) emerged as a standout performer, reporting a remarkable 5.4% increase in its stock value, closing the week at $485.09 and achieving a historic record closing high of $493.55 on Thursday. Despite a minor dip of 2.3% following the eagerly awaited earnings release on August 23, Nvidia’s stock is now up an astonishing 232% in 2023. Market analysts remain optimistic about its future prospects, with an average price target of $645.29, suggesting a potential 31% upside from the Friday closing price, as reported by FactSet data.
In tandem with Nvidia, other members of the elite ‘Magnificent 7’ also displayed impressive performances. Apple (AAPL) saw a robust 6.1% gain throughout the week, while Netflix (NFLX) surged by 5.7%, and Google’s Alphabet (GOOGL) climbed by 4.5%. Meta Platforms (META) reported a 3.8% increase, Amazon (AMZN) followed closely with a 3.6% gain, and Tesla (TSLA) stock witnessed a respectable 2.7% rise.
The tech sector, including chip stocks, experienced a prosperous week. Micron Technology (MU) and Intel Corp (INTC) demonstrated remarkable growth with gains of 10.5% and 10.1%, respectively. Among the top-performing stocks in the S&P 500, Western Digital (WDC), a disk-drive and flash-memory chip company, led the way with a substantial 16.4% increase, closely followed by data storage company Seagate Technology (STX), which reported a 14.4% surge.
In contrast, it was a challenging week for retailers, particularly those in the discount sector. Dollar General (DG) saw the sharpest decline, plummeting by 16% following disappointing earnings and a reduced guidance outlook. Dollar Tree also reported a 3.7% fall. Walgreens Boots Alliance faced its own challenges, with a 7.2% drop as the healthcare giant announced the departure of its CEO, Rosalind Brewer.
As Wall Street embarks on September, the remarkable performances of tech giants provide a glimmer of optimism, defying the historical market patterns for the month, and setting the stage for an intriguing month ahead.
