Resiliency was the theme on Wall Street to end September and begin the fourth quarter. Despite a U.S. government shutdown, concerning mid-week jobs data, and a brief AI lull, all three major benchmarks bagged record closes and were set for weekly gains. As of this writing on Friday, the Dow Jones Industrial Average (DJI), S&P 500 (SPX), and Nasdaq Composite (IXIC) were all in the midst of six-day win streaks.
Analyst Attention Worth Monitoring
The brokerage community was active this week, with analysts turning bullish on Celsius (CELH), Lam Research (LRCX), Sunrun (RUN), and Freeport-McMoRan (FCX). They weren't as kind to red-hot Western Digital (WDC) and Spotify Technology (SPOT), the latter also wrangling with a C-suite shakeup. Analysts chimed in on Nike (NKE) after an encouraging earnings report, while a struggling chemicals stock was thrown a lifeline.
Odds and Ends
Despite swelling valuations, many growth stocks remained parabolic this week. Rare earths stocks continued to shine, and drone maker Red Cat (RCAT) got a late-week boost from an upgrade. Intel (INTC) partnership rumors had Advanced Micro Devices (AMD) trending, with traders piling on in response, but there's another semiconductor stock investors should watch. Even pharma stocks joined in on the fun, thanks to TrumpRx buzz.
What's the Path Forward?
Looking ahead, Fed minutes are sure to move the needle next week. With the shutdown showing no signs of ending, our quantitative study on historical S&P 500 returns around shutdowns is as pertinent as ever. And while there's skepticism around the sustainability of this latest tech sector rally, Senior V.P. of Research Todd Salamone reminds us that short interest is still at elevated levels, further complicating the market landscape. Tread lightly, contrarians.
