Good evening. The S&P 500 ended up only 0.2% on the week, and it is currently 0.33% off its record close from July. U.S. financial markets are closed Monday in observance of Labor Day. Here are the top stocks to watch this week and what’s moving the markets.

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Top Stocks & Setups To Watch This Week

• $TSLA
Break above 220.32 🎯 231.87 & 239.20
• $AMZN
Break above 178.73 🎯 182.39 & 186.98
• $NVDA
Break above 121.75 🎯 128.12 & 132.84
• $NFLX
Break above 711.33 🎯 724.58 & 739.25
• $META
Break below 515.95 🎯 502.30 & 488.92
• $AAPL
Break below 226.49 🎯 221.72 & 217.53

KV’s S&P 500 Analysis

KV here with your weekly SPY levels! The S&P 500 did not move much last week, as seen on the chart above it stayed on a tight consolidation right below the all-time high levels from July. The levels are the same as last week where investors are now just waiting if the price will see new highs this week or does a double-top get formed here.

Weekly Market Recap

Market Leadership Shifts

August saw a strong market pullback of nearly 10%, only for stocks to rebound to all-time highs. While tech giants like NVIDIA still lead the market, their influence is waning due to high expectations and slowing growth. A broader range of sectors is now driving gains, suggesting a shift in market leadership. Despite this, demand for AI remains strong, with companies continuing to invest heavily, keeping the tech narrative relevant.

Fed Signals Cuts

The Fed’s latest message at Jackson Hole indicates imminent rate cuts as inflation moves closer to its 2% target. Bond yields have dropped in anticipation of this new easing cycle, suggesting the market expects rates to fall by about 1% by year-end. With inflation cooling and labor market concerns rising, the Fed is set to make gradual, data-dependent rate cuts, supporting a less restrictive policy and easing investor anxiety.

Growth Outlook Resilient

With inflation nearing target levels, market attention is shifting from inflation concerns to growth prospects. While recession fears triggered volatility in August, recent strong data suggest the economy remains resilient. A soft landing is still likely, with the Fed poised for a multiyear rate-cutting cycle to support growth. Despite the summer's upbeat finish, seasonal volatility and uncertainties ahead emphasize the need for diversification and discipline.

Coming Up…

Important economic releases this week include the ISM Manufacturing PMI and nonfarm payrolls report for August. On the earnings front, AVGO, AI, PATH, DOCU, and CHPT are expected to report this week.

Key Headlines We’ve Been Reading

This is what’s caught our eye over the past 7 days.

• Apple explores robotics to expand products and services.
• UNICEF issues emergency tender to secure mpox vaccines.
• PDD stock plunges 28% as revenue hit by China slowdown.
• Skydance set to seal Paramount merger as Bronfman drops out.
• Goldman Sachs cuts its expected Oil price range by $5.

Trading Rule Of The Week

That was it for this week!

Stay safe,
KV 👋

Week #36 | September 1, 2024

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