A potential government shutdown, earnings reports, and anticipation around inflation data made for a rocky start to the week, but all three major indexes still marked a third-straight record close on Monday. Nvidia's (NVDA) $100 billion investment in OpenAI pushed chips to the forefront, but it was not enough to stop stocks from snapping their win streaks.
Profit-taking pushed the Dow Jones Industrial Average (DJI) to its first back-to-back daily drop in three weeks. Sentiment stayed grim despite cooler-than-expected jobs data, while personal consumption expenditures (PCE) data for August showed core inflation was in line with estimates. The three indexes were set to end the week lower amid tariff updates, with the S&P 500 Index (SPX) and Nasdaq Composite (IXIC) looking to end their three-week win streaks.
Mining, Lithium Stocks Making Noise
Gold has been charging higher since the Federal Reserve cut interest rates, and this week several mining peers have come into focus. Three mining giants that should be radar are Newmont (NEM), Pan American Silver (PAAS), and Freeport-McMoRan (FCX). Meanwhile, lithium names Lithium Americas (LAC) and Albemarle (ALB) have gotten a lot of attention, too, after the Trump administration said it's pursuing an up to 10% equity stake in the former.
Quantum, AI Movement on Deck
AI and quantum computing names roared into headlines this week following OpenAI's deal with Nvidia. BigBear.ai (BBAI), SoundHound AI (SOUN), and Serve Robotics (SERV) could benefit from a short squeeze, while Schaeffer's Expiration Week Countdown bulls landed big gains with Quantum Computing (QUBT).
AI giant Applied Materials (AMAT) attracted praise this week, landing an upgrade to "overweight" at Morgan Stanley. On the flip side, Goldman Sachs initiated coverage of nuclear data center supplier Oklo (OKLO) with "neutral" rating, citing adverse operation risks.
Economic Data Picks Up to Start October
After a busy couple of weeks, including a GDP update and an interest rate cut, the calendar turns to October with even more economic data. A few notable earnings reports are on the agenda as well, including Cal-Maine Foods (CALM), Carnival (CCL), Conagra Brands (CAG), Paychex (PYX), and Vail Resorts (MTN), but the one to watch will surely be Nike (NKE).
It's worth nothing that a short-term inflection point doesn't seem to completely rule out optimism for the SPX, per Schaeffer's Senior V.P. of Research Todd Salamone. Plus, the recent American Association of Individual Investors (AAII) survey could be a reliable contrarian indicator, according to Quantitative Analyst Rocky White.
