Wall Street Today : The US stock markets opened down on Friday, September 20, as investors consolidated gains after a big leap the previous trading session. This had resulted from a landmark policy decision from the United States Federal Reserve, known as the FED, that left the interest rate sharply higher at 50 basis points to be cut on Wednesday. Well, let’s dig into how the major US indices – Dow Jones Industrial Average, the S&P 500, and the Nasdaq Composite – fared during Friday’s trading session.
Table of Contents
Wall Street Today : Dow Jones Industrial Average Opens Down
The Dow Jones Industrial Average fell 0.16% at the opening bell on Friday to 41,959.43 points from Thursday’s close of 42,025.19 points. The pullback comes as investors appear to take caution as they reposition themselves after gains on Thursday.
Big Winners on the Dow
Even with the fall, some companies included in the Dow Jones Industrial Average fared well during Friday’s trading session:
Nike Inc.
Walmart Inc.
Verizon Communications Inc.
Cisco Systems Inc.
American Express Co.
International Business Machines Corp. (IBM)
Travelers Cos. Inc.
Apple Inc.
Procter & Gamble Co.
McDonald’s Corp.
Amgen Inc.
Coca-Cola Co.
JPMorgan Chase & Co.
Merck & Co. Inc.
These companies remained buoyant, and showed positive revisions as the index fell.
Top Laggards on the Dow Jones
However, the other main players did not do as great during the session. Included in the top laggards are the following companies;
Dow Inc.,
Intel Corp.,
Salesforce Inc.
Caterpillar Inc.
These stocks brought down the index while showcasing challenges in certain sectors within the market.
S&P 500 Sinks a Little
On Friday, the S&P 500 index opened lower as it lagged to a minor loss of 0.07% for the day at 5,709.64 points, having closed at 5,713.64 points the previous day. This minor fall indicated that the sentiment in the market remains wary.
S&P 500 Top Performers
While the day was marked by a minor loss, the following firms on the S&P 500 index continued to have an excellent day:
Constellation Energy Corp.
Vistra Corp.
Nike Inc.
CrowdStrike Holdings Inc.
Exelon Corp.
Public Service Enterprise Group Inc.
NRG Energy Inc.
Super Micro Computer Inc.
Eli Lilly & Co.
Newmont Corp.
These companies powered the index higher, with energy, tech, and pharma playing into favorable market conditions.
Top Laggards on the S&P 500
On the flip side, some companies felt the downside pressure:
FedEx Corp.
On Semiconductor Corp.
Old Dominion Freight Line Inc.
Viatris Inc.
Moderna Inc.
Those stocks took losses during Friday’s session, driving the decline in the S&P 500.
Nasdaq Composite Faces Minor Fall
The Nasdaq Composite, which is also an index with a strong representation in tech, opened lower by 0.08% to 17,999.345 points. This was against the close of Thursday at 18,013.98 points. This is not a serious fall at all. The Nasdaq composite, which is focused on tech, performed mixed results throughout the day.
NASDAQ Composite Top Gainers
The following companies listed on the Nasdaq Composite were impressive in this session:
Expion360 Inc.
Nova Vision Acquisition Corp.
Banzai International Inc.
Leafy Holdings Inc.
Verb Technology Co. Inc.
Agriforce Growing Systems Ltd.
Alliance Entertainment Holding Corp.
Bone Biologics Corp.
Immuneering Corp.
Nano Nuclear Energy Inc.
These companies, most of which are niche players, were some of the standout performers, boasting fantastic profitability, an excellent indicator of where investors’ sentiment was for those sectors.
Top Laggards on the Nasdaq Composite
On the negative side, there are those that lost in the Nasdaq Composite:
Smart for Life Inc.
Garden Stage Ltd.
Corbus Pharmaceuticals Holdings
Linkage Global Inc.
Skye Bioscience Inc.
These were among the top laggards dragging the index down as they dealt with sector-specific challenges.
Market Overview: FED Rate Cut and Investor Sentiment
Friday opened the US stock markets with lower openings, following on from the high posted Thursday. Thursday’s market rises had been spurred on in the wake of the 50-basis point rate cut by the FED on Wednesday. This was one of the biggest rate cuts that the FED has made recently and were motivated by the fear that economic growth and inflationary pressures were perceived to be growing factors in all economies. The move in the markets had initially boosted investor confidence, lifting markets Thursday.
But as Friday approached, investors appeared to take a step back and reconsider the long-run ramifications of the bold monetary policy shift by the FED. A decline in each of the three major indexes was exemplified by even slight downticks, which reflected more circumspect behavior on the part of market participants, who centered their attention on how the rate-cut decision would ultimately impact future corporate earnings, growth, and volatility in the market.
Conclusion: Step Back: A Cautious Approach following FED Action
The US stock markets opened in the red on Friday, September 20, after the markets let loose in the previous session. While certain stocks in the Dow Jones, S&P 500, and Nasdaq Composite indices managed to be in the green, many were in the red, which sums the entire downturn in the markets. As ease stemming from the rate cut continues to filter in, investors will, at that point go on to pay attention to macroeconomic data and corporate earnings reports to guide them on their next move.
Mixed performance in different sectors speak the fact that some sectors are taking the current scenario of advantage while others face headwinds. In the coming days, one should see how markets would react as they read all the posture of actions taken by the Fed and try to assess the economy.