Stocks in New York conclude at unprecedented heights prior to the announcement of the Federal Reserve's interest rate determination
In the world of finance, the recent rally in technology stocks has been driven by a select group of giants, as revealed by chart experts from Index Radar. Approximately half of the S&P 500 members have been in the red since the beginning of this winning streak, with more losers than winners on most days.
The Nasdaq, in particular, has seen a surge of optimism due to the hope for a loosening of monetary policy. However, the S&P 500 ended down 0.13 percent at 6,606.76 points, while the Nasdaq 100 and the Nasdaq Composite barely moved.
One notable exception to the red trend is Webtoon Entertainment, whose shares soared as much as 39 percent. This surge was followed by an announcement of Disney's planned cooperation with Webtoon Entertainment, which includes Disney taking a 2 percent stake in the company. Despite this exciting news, Webtoon's shares slipped slightly.
Disney also unveiled plans to bring all its popular comics, such as those from the Star Wars and Marvel universes, together on a new digital platform and app.
In other news, Goldman Sachs has been busy upgrading stocks. Following the company's reaffirmed 2025 financial guidance, planned $20 billion stock buyback program for 2025–2027, and significant strategic initiatives like expanding its fiber network to over 60 million homes by 2030, Goldman Sachs upgraded AT&T from 'Sell' to 'Buy'. Hershey's shares also received a double upgrade from Goldman Sachs, rising 4.3 percent following the upgrade from 'Sell' to 'Buy'.
Meanwhile, the focus remains on the further news today path, with market analyst Jochen Stanzl from trading house CMC Markets predicting a 0.25 percentage point lowering of the key interest rate by the Fed. There is a small chance of a larger 0.50 point cut, according to Stanzl.
Robust economic data has reinforced skepticism among market participants that the Fed will lower interest rates aggressively in the future. Retail sales in August, for example, rose more than expected.
In a separate development, President Donald Trump filed a billion-dollar defamation lawsuit against The New York Times and several of its journalists. The lawsuit was, however, rejected as unfounded by The New York Times. Shares of The New York Times fell 1.6 percent following the news.
In conclusion, while the S&P 500 saw a slight downturn, the rally in technology stocks continues to be driven by a select few giants. Goldman Sachs' upgrades of AT&T and Hershey's have boosted their shares, and the focus remains on the Fed's interest rate path. Other developments include Disney's plans for a new digital platform, robust retail sales data, and President Trump's defamation lawsuit against The New York Times.
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