Market Insights: September Performance and Outlook
The market experienced some turbulence in the first half of September, with slight dips in the S&P 500 and NASDAQ before the Federal Reserve’s decision to cut key interest rates by 0.50%. Post-rate cut, the S&P 500, Dow, and NASDAQ all saw gains and are now up for the month.
Quarter-End Window Dressing
As we approach the end of September and the third quarter, we can expect a phenomenon known as quarter-end window dressing to come into play. Institutional fund managers tend to enhance their portfolios by adding fundamentally superior stocks, leading to increased buying pressure and upward momentum in the market.
Key Economic Data to Watch
- New home sales data will be released on Wednesday.
- Thursday brings updates on jobless claims and gross domestic product (GDP).
- Friday’s focus will be on the Personal Consumption Expenditures (PCE) index report for August, a key indicator of inflation.
Fed’s Rate Cut and Economic Outlook
The recent interest rate cut by the Federal Reserve has been well-received by the market, with dovish comments and signals of future rate cuts contributing to a bullish sentiment. Fed officials will be closely watched for their views on the economy and interest rate policies.
This Week’s Ratings Changes
125 big blue chip stocks were reassessed using Stock Grader, with notable upgrades and downgrades:
- 18 stocks upgraded to Strong Buy (A-rating).
- 23 stocks upgraded to Buy (B-rating).
- 17 stocks upgraded to Hold.
- 28 stocks downgraded to Hold.
- 22 stocks downgraded to Sell.
- 2 stocks downgraded to Strong Sell (F-rating).
Top 10 Strong Buy Stocks
Here are the first 10 stocks rated as Strong Buys:
| AXP | American Express Company | A |
| CHRW | C.H. Robinson Worldwide, Inc. | A |
Maximizing Opportunities Post-Fed Pivot
With the Fed’s shift to a more dovish interest rate policy, coupled with quarter-end window dressing, fundamentally superior stocks are positioned to benefit the most. Now is the time to capitalize on the market’s positive momentum.
For more insights on leveraging the current market conditions, click here.
Louis Navellier
Editor, Market 360
P.S. Prepare for market uncertainties with expert guidance. Reserve your spot now.
Disclosure: The Editor holds positions in Interactive Brokers, Inc. Class A (COO).