Weekly Stock Market Update 9/4/23 After enjoying a wonderfully relaxing long weekend, we are eagerly anticipating our return to the world of trading. While this week might seem relatively quiet on the economic front, the spotlight is expected to shine on the beige book, scheduled for release on Wednesday at 2 pm ET. This report is anticipated to capture considerable attention and dominate headlines as it offers valuable insights into the overall economic conditions across different regions. Looking ahead, the following week promises more significant developments with the release of both the monthly CPI (Consumer Price Index) and PPI (Producer Price Index) reports. These releases will be closely watched, given their potential impact on the Federal Reserve's impending decision on whether to adjust interest rates or maintain the status quo.In the realm of upcoming earnings, we're not anticipating substantial market fluctuations driven by key earnings releases. Many of the major players that hold sway over the benchmark S&P 500 and the NASDAQ 100 have already unveiled their financial results. Nonetheless, this week does bring a handful of intriguing earnings reports, organized by their respective market capitalizations, for investors to keep an eye on. As we step into September, one critical factor I'll be closely monitoring is the potential shift towards value-oriented stocks. It's important to note that, much like in 2022, this shouldn't be perceived as a bearish rotation. Rather, it reflects a natural ebb and flow in the market. Growth stocks, having had their moment, might benefit from a breather, while areas such as semiconductors could exhibit long-term negative divergences on the weekly chart if their recent strength continues unchecked. This dynamic underscores the ever-evolving landscape of the financial markets, where investors adapt to changing trends and opportunities.
