Investing.com: S&P 500 Ends August with Fourth-Month Win Amid Economic Rebound
The S&P 500 closed higher on Friday, wrapping up the month of August with a fourth consecutive monthly gain as concerns about the economy eased, leading to a sharp rebound in stocks after a major selloff earlier in the month.
By 4:00 p.m. ET (8:00 GMT), the S&P 500 gained 0.04%, while the Dow climbed 1% and the Nasdaq rose 228 points, or 0.63%. The S&P 500 ended the month 2% higher, bouncing back strongly after its significant loss on August 5 following a weaker July jobs report that sparked recession fears. However, positive labor market data quickly dispelled those concerns.
July Inflation Data and Rate-Cut Expectations
The core inflation rate, the Federal Reserve's preferred measure, increased by 2.6% in July on an annual basis, slightly below the estimated 2.7%. This data reinforced expectations for the Fed to cut interest rates as early as next month, with traders now pricing in a 68% chance of a 25 basis point cut, down from a 30% chance for a 50 bps cut.
Dell, Ulta, Lululemon, and Intel Stock Movements
Dell stock surged over 4% after the company raised its annual forecasts following better-than-expected quarterly results driven by record AI server revenue. On the other hand, Ulta Beauty and Lululemon Athletica saw declines after cutting their annual sales and profit forecasts due to slowing demand in their respective markets.
Intel shares jumped more than 9% after reports that the tech giant is contemplating spinning off its foundry business and halting plans for new factories to navigate a slowdown in the industry. This move could create immediate value for shareholders as Intel looks to address losses in its foundry business.
In conclusion, the financial markets experienced a positive month in August, with stocks rebounding from earlier losses. The inflation data and rate-cut expectations are key factors to watch as the Fed considers monetary policy adjustments. Additionally, individual company performances such as Dell, Ulta, Lululemon, and Intel provide insights into specific industry trends and potential market opportunities. Stay informed and make informed investment decisions based on these developments.