US stocks failed to build on yesterday's rally amid a massive options expiration on the third triple witching day of 2023. The Dow Jones shed 288 points, while the S&P 500 and the Nasdaq slid by 1.2% and 1.6% respectively. Megacap shares were among top losers of the session as Amazon (-3%), Nvidia (-3.7%) and Microsoft (2.5%) all dropped. Adobe fell 4.2% after its quarterly earnings and outlook met expectations but disappointed investors' demand for the AI tools that would boost revenue. Planet Fitness shares plunged 15.9% after the gym chain pushed out its CEO. On the other hand, General Motors and Chrysler-owner Stellantis added 0.8% and 2% respectively as United Auto Workers started a strike and halted production. Arm Holdings fell 4.5%, one day after its successful public debut. On the week, the Dow Jones is down 0.1% so far, the S&P 500 and the Nasdaq lost 0.5% and 0.9%, respectively. Traders now eagerly await the FOMC monetary policy decision due next week.
European stocks rose in the second week of September, with Frankfurt's DAX 40 climbing 1%, and the pan-European STOXX 600 gaining about 1.6%, as prospects of the European Central Bank nearing the end of its monetary tightening cycle further boosted risk sentiment. On Thursday, the central bank delivered its 10th consecutive rate hike, a 25 basis point increase, but also conveyed its intention to potentially halt further policy tightening as inflation began to show signs of receding. Furthermore, investors embraced robust Chinese economic data that exceeded expectations, highlighting substantial growth in both industrial activity and retail sales. In the corporate arena, shares of H&M plunged by over 7% after the fashion conglomerate reported quarterly sales that remained stagnant, falling short of anticipated figures.
The BSE Sensex closed 0.47% higher at a record high of 67,838 on Friday, extending gains for the 11th consecutive session and registering its longest winning-streak in 16 years, as investors welcomed positive data from trading partner China. Domestically, auto stocks led gains, pushed by a 6.3% jump in Bajaj Auto after Bofa Global Research upgraded the stock from "neutral" to "buy". Mahindra & Mahindra gained 2.2% and Tata Motors added 1.6%. Meanwhile, the Nifty 50 rose 0.44% to also close at a record 20,192. On the week, the BSE Sensex grew 1.9%.
The S&P/TSX Composite index finished 0.2% higher at 20,622 on Friday, marking the fifth session of gains while adding 2.4% on the week as gains in the financial and material sector limited the losses in tech shares. Miners led the gains for a second consecutive session, as Barrick Gold and Agnico Eagle Mines soared by 1.8%and 2% after strong industrial data from China consolidated hopes that high infrastructure spending and economic support from Beijing are having a positive impact on resource demand. Meanwhile, energy producers finished marginally higher amid higher crude oil prices. Additionally, banks extended their positive momentum with RBC, TD Bank, and BMO all closed in the green. On the flip side, tech shares underperformed by 0.4%, tracking falls of their counterpart in the Nasdaq on the triple witching day.
The Nikkei 225 Index jumped 1.1% to close at 33,533 while the broader Topix Index climbed 0.95% to 2,428 on Friday. Both benchmark indexes also gained nearly 3% for the week. Arm Holdings, a chip design firm 90% controlled by SoftBank, soared nearly 25% on its market debut and signalled a potential end to a prolonged technology IPO drought. All sectors advanced on Friday, with strong gains from index heavyweights such as SoftBank Group (2.1%), Tokyo Electron (3.1%), Toyota Motor (2.7%), Sony Group (2.3%) and Inpex Corp (1.6%).
The S&P/ASX 200 Index jumped 1.29% to close at 7,279 on Friday. The benchmark index also gained nearly 2% for the week. Moreover, domestic shares got a boost after China cut reserve requirements for all banks and reported upbeat retail sales and industrial production numbers for August, boosting the economic outlook for Australia’s largest trading partner. Mining and energy stocks led the charge on firmer commodity prices, with gains from BHP Group (3.7%), Rio Tinto (3.4%), Fortescue Metals (4.3%), Woodside Energy (1.3%) and Whitehaven Coal (4.6%). Nearly all other sectors also advanced, including financial, consumer-related and technology stocks.
