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A soft start to September after a poor end to August has left the most important part of the stock market — everything related to AI — in a shakier state. The market has been jittery about semiconductors and data centers, but may have just found a new interest.
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Presented by
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Hey Snackers,
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<p style="margin:0;margin-bottom:16px">
Apple Watch data from over 61,000 adults shows that most Americans aren’t getting enough sleep, with the average sleep duration at
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<strong>
6 hours and 40 minutes
</strong>
</a>
.
<strong>
</strong>
However, the climate you live in can be a big influence on how much you sleep: residents in
<a style="text-decoration: underline; color: #5869ff;">
<strong>
colder states
</strong>
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</strong>
tend to
<strong>
</strong>
sleep more, whereas residents in
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warmer states
</strong>
</a>
sleep less (with a few
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<strong>
interesting exceptions
</strong>
</a>
).
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The S&P 500 rose 0.5% and the Nasdaq 100 gained 0.8% while the Russell 2000 dipped 0.1% on Wednesday. The S&P 500’s
<a style="text-decoration: underline; color: #5869ff;">
<strong>
finish in the green
</strong>
</a>
<strong>
</strong>
was attributable to just two companies:
<strong>
Alphabet
</strong>
and
<strong>
Apple
</strong>
, which put the stock market on their broad, multitrillion-dollar shoulders.
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FEELING SAASY
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<strong>
Is the new AI trade just software?
</strong>
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<p style="margin:0;margin-bottom:16px">
A soft start to September after a poor end to August has left the most important part of the stock market — everything related to AI — in a shakier state. The market has been
<strong>
</strong>
<a style="text-decoration: underline; color: #5869ff;">
<strong>
jittery about semiconductors and data centers
</strong>
</a>
, but
<a style="text-decoration: underline; color: #5869ff;">
<strong>
may have just found a new interest
</strong>
</a>
.
</p>
<p style="margin:0">
First, what’s eating the AI trade?
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Semiconductors are in
<a style="text-decoration: underline; color: #5869ff;">
<strong>
a precarious position
</strong>
</a>
, with the VanEck Semiconductor ETF not too far away from completing a bearish head-and-shoulders top pattern.
</li>
<li aria-level="1" style="Margin:0 0 8px 0">
Zooming in on the most important semiconductor stock,
<strong>
</strong>
<a style="text-decoration: underline; color: #5869ff;">
<strong>
Nvidia, the heart, soul, and many other body parts of the AI trade
</strong>
</a>
, closed below its 50-day moving average on Tuesday for the first time since May, when it was repairing damage done in the wake of the momentum meltdown and tariff angst that roiled markets.
</li>
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<p style="margin:0;margin-bottom:16px">
So that’s the shakiness. But… there is hope.
</p>
<p style="margin:0;margin-bottom:16px">
Software has been
<a style="text-decoration: underline; color: #5869ff;">
<strong>
something of a laggard
</strong>
</a>
in the world of tech over the last year, as investor dollars flocked to the sexiest — and most high-performing — hyperscalers, power providers, and electrical equipment makers poised to profit from the AI data center boom, but a change may be afoot.
</p>
<p style="margin:0">
Several, let’s just say it,
<em>
incredibly boring
</em>
business-to-business data management software companies like Datadog, Snowflake, Autodesk, and Pure Storage have had a bit of a run lately, partly driven by surprisingly
<a style="text-decoration: underline; color: #5869ff;">
<strong>
strong earnings results
</strong>
</a>
.
</p>
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<span class="tinyMce-placeholder" style="word-break: break-word;">
THE TAKEAWAY
</span>
</h1>
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<p style="margin:0">
Until recently, the rap on software was, essentially, that AI stood to potentially disrupt and undercut the
<a style="text-decoration: underline; color: #5869ff;">
<strong>
immensely profitable “software as a service” (SaaS) industry
</strong>
</a>
. As a Goldman Sachs analyst wrote in a recent note titled, “Updated thoughts on the ‘Death of Software,’” the reality seems to be that large software companies are rapidly embracing AI technology themselves, adopting a hybrid strategy. Given recent fireworks following software companies’ earnings reports, it could be
<a style="text-decoration: underline; color: #5869ff;">
<strong>
a profitable area
</strong>
</a>
for investors to watch.
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<strong>
SEPTEMBER SCARIES
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<strong>
Will September once again be the worst month of the year for the market?
</strong>
</a>
</h1>
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<p style="margin:0;margin-bottom:16px">
On the first trading day of September, the market gave to me… a dip in my portfolio tree. It’s a curious phenomenon: over the past 45 years, September has been the
<em>
only
</em>
month when the S&P 500 Index has averaged a loss, as
<strong>
</strong>
<a style="text-decoration: underline; color: #5869ff;">
<strong>
you can see in this chart
</strong>
</a>
. While it’s one thing to know September is weak on average, it’s another to
<a style="text-decoration: underline; color: #5869ff;">
<strong>
see how often the month
</strong>
</a>
really goes south.
</p>
<p style="margin:0">
Why September trends this way is puzzling. Intuitively, it shouldn’t matter what month it is — but the phenomenon has held going
<a style="text-decoration: underline; color: #5869ff;">
<strong>
back to the 1930s
</strong>
</a>
. Some theories why include:
</p>
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<ul style="margin-top:0;margin-bottom:0;list-style-type:revert">
<li aria-level="1" style="Margin:0 0 8px 0">
<strong>
Seasonal moves
</strong>
that add to selling pressure. Fund managers, for instance, sometimes
<a style="text-decoration: underline; color: #5869ff;">
<strong>
clean up
</strong>
</a>
their portfolios before fiscal year-end in September and October, while some investors start early on selling losers to
<a style="text-decoration: underline; color: #5869ff;">
<strong>
shrink their tax bill
</strong>
</a>
.
</li>
<li style="Margin:0 0 8px 0">
<strong>
“Post-holiday blues”:
</strong>
as trading slows during summer breaks, bad news isn’t fully priced in, and markets adjust lower once investors get back to business.
</li>
</ul>
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<p style="margin:0">
Other ideas include diminishing daylight making markets droop, IPO seasonality, and
<a style="text-decoration: underline; color: #5869ff;">
<strong>
pop psychology
</strong>
</a>
making investors turn fears into reality. Basically, if traders are expecting a bad month, they’re more likely to flee their positions at the first sign of bad news. Markets see a similar pressure in May as some traders take to heart the adage,
<strong>
“
</strong>
<a style="text-decoration: underline; color: #5869ff;">
<strong>
Sell in May and go away
</strong>
</a>
<strong>
.”
</strong>
</p>
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THE TAKEAWAY
</span>
</h1>
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<p style="margin:0">
The second trading day of September saw
<a style="text-decoration: underline; color: #5869ff;">
<strong>
the S&P 500 close a bit up
</strong>
</a>
, so it’s far too early to say whether this is another case of the curse, but the reality is that seasonal influences are only ever going to be very marginal. If the economy roars, inflation cools, AI makes a breakthrough, and geopolitical tensions abate, expect stocks to soar no matter what the calendar says.
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<span style="word-break: break-word; line-height: 16.8px;">
<strong>
THE BEST THING WE READ TODAY
</strong>
</span>
</span>
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</div>
</td>
</tr>
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<a style="text-decoration: underline; color: #5869ff;">
<strong>
Google’s antitrust ruling: What that brave new world looks like
</strong>
</a>
</h1>
</td>
</tr>
</table>
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<p style="margin:0;margin-bottom:16px">
For those hoping Google’s monopoly case would bring big change to Big Tech, Tuesday’s ruling was a severe disappointment. As Wedbush Securities analyst Dan Ives titled his note following the decision: “Government Folds Like Cheap Suit.” But that doesn’t mean the landscape hasn’t changed for Google and especially for competitors like
<strong>
Apple
</strong>
and
<strong>
OpenAI
</strong>
.
</p>
<p style="margin:0">
<a style="text-decoration: underline; color: #5869ff;">
<strong>
Go deeper.
</strong>
</a>
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<div align="left" class="alignment">
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OFF THE CHARTS
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<p style="margin:0;margin-bottom:16px">
What is the only Oscars moment of this decade to make the top 15 most viewed clips on the Oscars’ YouTube channel?
</p>
<p style="margin:0">
Hint: It’s *not* The Slap, which the Oscars does not feature on its YouTube channel.
</p>
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Check your answer.
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Presented by SmartAsset
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<strong>
$1B Startup Disrupting Retirement Industry
</strong>
</h1>
</td>
</tr>
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<p style="margin:0;margin-bottom:16px">
This Princeton grad's startup
<sup>
2
</sup>
raised $161M
<sup>
3
</sup>
to
<strong>
</strong>
<a style="text-decoration: underline; color: #5869ff;">
<strong>
help people plan for retirement.
</strong>
</a>
</p>
<p style="margin:0;margin-bottom:16px">
If you're one of the whopping estimated 124 million Americans over age 50 — or a wise millennial planning ahead — SmartAsset's
<a style="text-decoration: underline; color: #5869ff;">
<strong>
no-cost tool
</strong>
</a>
<sup>
4
</sup>
makes it easy to find vetted financial advisors serving your area.
</p>
<p style="margin:0">
<a style="text-decoration: underline; color: #5869ff;">
<strong>
Get your financial advisor matches today.
</strong>
</a>
<sup>
5
</sup>
</p>
</div>
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</tr>
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<strong>
MOVES
</strong>
</span>
</span>
<!--[if mso]></center></v:textbox></v:roundrect><![endif]-->
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<table border="0" cellpadding="0" cellspacing="0" class="heading_block block-3" role="presentation" style="mso-table-lspace:0;mso-table-rspace:0" width="100%">
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<strong>
Yesterday’s Big Daily Movers
</strong>
</h1>
</td>
</tr>
</table>
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<tr>
<td class="pad" style="padding-bottom:5px;padding-left:10px;padding-right:10px">
<div style="margin-left:-20px">
<ul style="margin-top:0;margin-bottom:0;list-style-type:revert">
<li aria-level="1" style="Margin:0 0 8px 0">
<strong>
Hims & Hers
</strong>
<a style="text-decoration: underline; color: #5869ff;">
<strong>
shot up
</strong>
</a>
after a judge dismissed a lawsuit from Eli Lilly challenging a different telehealth company that sells knockoff versions of its GLP-1 drugs
</li>
<li aria-level="1" style="Margin:0 0 8px 0">
<strong>
Dollar Tree
</strong>
<a style="text-decoration: underline; color: #5869ff;">
<strong>
slumped
</strong>
</a>
after fresh guidance suggested weakening sales momentum in the second half of the year
</li>
<li aria-level="1" style="Margin:0 0 8px 0">
<strong>
American Bitcoin
</strong>
, a treasury company backed by the elder Trump brothers,
<a style="text-decoration: underline; color: #5869ff;">
<strong>
skyrocketed
</strong>
</a>
on its first day of trading
</li>
<li aria-level="1" style="Margin:0 0 8px 0">
<strong>
Macy’s
</strong>
<a style="text-decoration: underline; color: #5869ff;">
<strong>
surged
</strong>
</a>
after crushing Q2 expectations and lifting its full-year outlook
</li>
<li style="Margin:0 0 8px 0">
<strong>
American Eagle
</strong>
soared after posting
<a style="text-decoration: underline; color: #5869ff;">
<strong>
blowout earnings
</strong>
</a>
and reinstating guidance
</li>
</ul>
</div>
</td>
</tr>
</table>
</td>
</tr>
</tbody>
</table>
</td>
</tr>
</tbody>
</table>
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<tbody>
<tr>
<td>
<table align="center" border="0" cellpadding="0" cellspacing="0" class="row-content stack" role="presentation" style="mso-table-lspace:0;mso-table-rspace:0;background-color:#fff;color:#000;width:600px;margin:0 auto" width="600">
<tbody>
<tr>
<td class="column column-1" style="mso-table-lspace:0;mso-table-rspace:0;font-weight:400;text-align:left;padding-left:25px;padding-right:25px;vertical-align:top" width="100%">
<table border="0" cellpadding="0" cellspacing="0" class="divider_block block-1" role="presentation" style="mso-table-lspace:0;mso-table-rspace:0" width="100%">
<tr>
<td class="pad" style="padding-bottom:25px;padding-top:25px">
<div align="center" class="alignment">
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<tr>
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<span style="word-break: break-word;">
</span>
</td>
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</table>
</div>
</td>
</tr>
</table>
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<tr>
<td class="pad" style="padding-bottom:10px;text-align:center;width:100%">
<h1 style="margin:0;color:#5869ff;direction:ltr;font-family:'Helvetica Neue',Helvetica,Arial,sans-serif;font-size:25px;font-weight:700;letter-spacing:normal;line-height:1.2;text-align:left;margin-top:0;margin-bottom:0;mso-line-height-alt:30px">
<span class="tinyMce-placeholder" style="word-break: break-word;">
What else we're Snackin'
</span>
</h1>
</td>
</tr>
</table>
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<tr>
<td class="pad" style="padding-bottom:5px;padding-left:10px;padding-right:10px">
<div style="margin-left:-20px">
<ul style="margin-top:0;margin-bottom:0;list-style-type:revert">
<li aria-level="1" style="Margin:0 0 8px 0">
The next Google is still most likely
<a style="text-decoration: underline; color: #5869ff;">
<strong>
Google
</strong>
</a>
, according to Morgan Stanley
</li>
<li aria-level="1" style="Margin:0 0 8px 0">
EVs powered
<strong>
Ford
</strong>
to its
<a style="text-decoration: underline; color: #5869ff;">
<strong>
sixth straight month of sales growth
</strong>
</a>
</li>
<li aria-level="1" style="Margin:0 0 8px 0">
Make love but also war? Weapons maker Rheinmetall AG has an
<a style="text-decoration: underline; color: #5869ff;">
<strong>
interesting gimmick
</strong>
</a>
to attract young talent
</li>
<li style="Margin:0 0 8px 0">
Move over
<strong>
Costco
</strong>
hot dog: there’s a new
<a style="text-decoration: underline; color: #5869ff;">
<strong>
delicious loss leader
</strong>
</a>
in town
</li>
</ul>
</div>
</td>
</tr>
</table>
</td>
</tr>
</tbody>
</table>
</td>
</tr>
</tbody>
</table>
<table align="center" border="0" cellpadding="0" cellspacing="0" class="row row-16" role="presentation" style="mso-table-lspace:0;mso-table-rspace:0" width="100%">
<tbody>
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<td>
<table align="center" border="0" cellpadding="0" cellspacing="0" class="row-content stack" role="presentation" style="mso-table-lspace:0;mso-table-rspace:0;background-color:#fff;border-radius:0;color:#000;width:600px;margin:0 auto" width="600">
<tbody>
<tr>
<td class="column column-1" style="mso-table-lspace:0;mso-table-rspace:0;font-weight:400;text-align:left;padding-bottom:5px;padding-left:25px;padding-right:25px;padding-top:5px;vertical-align:top" width="100%">
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</td>
</tr>
</table>
</td>
</tr>
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</table>
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</tr>
</tbody>
</table>
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<tbody>
<tr>
<td>
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<tbody>
<tr>
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<span class="tinyMce-placeholder" style="word-break: break-word;">
Snack Fact of the Day
</span>
</h1>
</td>
</tr>
</table>
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<p style="margin:0">
<a style="text-decoration: underline; color: #ffffff;">
<strong>
Americans spent over $113 billion on the lottery last year.
</strong>
</a>
</p>
</div>
</td>
</tr>
</table>
</td>
</tr>
</tbody>
</table>
</td>
</tr>
</tbody>
</table>
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<tbody>
<tr>
<td class="column column-1" style="mso-table-lspace:0;mso-table-rspace:0;font-weight:400;text-align:left;padding-left:25px;padding-right:25px;vertical-align:top" width="100%">
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</span>
</td>
</tr>
</table>
</div>
</td>
</tr>
</table>
<table border="0" cellpadding="0" cellspacing="0" class="heading_block block-2" role="presentation" style="mso-table-lspace:0;mso-table-rspace:0" width="100%">
<tr>
<td class="pad" style="text-align:center;width:100%">
<h1 style="margin:0;color:#5869ff;direction:ltr;font-family:'Helvetica Neue',Helvetica,Arial,sans-serif;font-size:25px;font-weight:700;letter-spacing:normal;line-height:1.2;text-align:left;margin-top:0;margin-bottom:0;mso-line-height-alt:30px">
<span class="tinyMce-placeholder" style="word-break: break-word;">
Thursday
</span>
</h1>
</td>
</tr>
</table>
</td>
</tr>
</tbody>
</table>
</td>
</tr>
</tbody>
</table>
<table align="center" border="0" cellpadding="0" cellspacing="0" class="row row-19" role="presentation" style="mso-table-lspace:0;mso-table-rspace:0" width="100%">
<tbody>
<tr>
<td>
<table align="center" border="0" cellpadding="0" cellspacing="0" class="row-content stack" role="presentation" style="mso-table-lspace:0;mso-table-rspace:0;background-color:#fff;color:#000;width:600px;margin:0 auto" width="600">
<tbody>
<tr>
<td class="column column-1" style="mso-table-lspace:0;mso-table-rspace:0;font-weight:400;text-align:left;padding-left:25px;padding-right:25px;vertical-align:top" width="100%">
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<tr>
<td class="pad" style="padding-bottom:5px;padding-left:10px;padding-right:10px;padding-top:5px">
<div style="margin-left:-20px">
<ul style="margin-top:0;margin-bottom:0;list-style-type:revert">
<li aria-level="1" style="Margin:0 0 8px 0">
August ADP Employment
</li>
<li aria-level="1" style="Margin:0 0 8px 0">
August ISM Services PMI
</li>
<li aria-level="1" style="Margin:0 0 8px 0">
Earnings expected from
<strong>
Broadcom
</strong>
and
<strong>
Lululemon
</strong>
</li>
</ul>
</div>
</td>
</tr>
</table>
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<p style="margin:0;margin-bottom:16px">
</p>
<p style="margin:0;margin-bottom:16px">
<strong>
Advertiser's disclosures:
<br/>
</strong>
</p>
<p style="margin:0;margin-bottom:16px">
<sup>
1
</sup>
<strong>
Before investing, consider the funds’ investment objectives, risks, charges, and expenses. To obtain a prospectus or summary prospectus, which contains this and other information, call 1-866-787-2257 or visit
</strong>
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<strong>
www.ssga.com
</strong>
</a>
<strong>
. Read it carefully.
</strong>
Investing involves risk. ALPS Distributors, Inc. (fund distributor); State Street Investment Management Funds Distributors, LLC (marketing agent).
</p>
<p style="margin:0">
<a style="text-decoration: underline; color: #1d1d1d;">
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<p style="margin:0;margin-bottom:16px">
<sup>
2
</sup>
This is a private company. There is no guarantee that the stated valuation and other terms are accurate or in agreement with the market or industry valuations. This $1B valuation was calculated in 2021.
</p>
<p style="margin:0;margin-bottom:16px">
<sup>
3
</sup>
This amount was raised in 8 rounds since 2012.
</p>
<p style="margin:0;margin-bottom:16px">
<sup>
4
</sup>
There is no cost associated with using the SmartAsset matching tool. If you choose to work with an adviser, the adviser charges fees for their services.
</p>
<p style="margin:0">
<sup>
5
</sup>
SmartAsset’s services are limited to referring users to third party advisers registered or chartered as fiduciaries ("Adviser(s)") with a regulatory body in the United States that have elected to participate in our matching platform based on information gathered from users through our online questionnaire. SmartAsset receives compensation from Advisers for our services based on lead generation. SmartAsset does not review the ongoing performance of any Adviser, participate in the management of any user’s account by an Adviser or provide advice regarding specific investments. We do not manage client funds or hold custody of assets, we help users connect with relevant financial advisors.
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1 week, 4 days ago - hello@snacks.robinhood.com
A soft start to September after a poor end to August has left the most important part of the stoc...