What Moved Markets This Week

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It was a mixed five days for Wall Street, though the benchmark S&P 500 index (SP500) managed to rebound from last week’s sharp selloff by ekeing out marginal gains. A boost to sentiment from the end of the longest U.S. government shutdown and positive trade developments was offset by continued weakness in the artificial intelligence (AI) trade and hawkish comments from Federal Reserve speakers.

The AI narrative remains under pressure, and concerns over stretched valuations and unsustainable capital spending again hit tech stocks this week. The Global X Artificial Intelligence & Technology ETF (AIQ) has now slid more than 5% in two weeks.

Meanwhile, policymakers such as Cleveland Fed President Beth Hammack and Boston Fed President Susan Collins cautioned against further interest rate cuts amid the lack of economic data. On that front, however, traders received a reprieve after the U.S. government shutdown ended on Wednesday with the passing of a spending bill, lasting nearly 43 days and becoming the longest in American history. This means that economic data will return, with the Bureau of Labor Statistics confirming a next Thursday release for the much-anticipated September nonfarm payrolls report.

On the trade front, President Donald Trump on Friday signed an order exempting certain food products from his reciprocal tariffs – such as coffee, cocoa, and beef – amid growing consumer angst over high grocery prices.

Also grabbing eyes this week were 13F filings, or regulatory disclosures by major funds of their quarterly equity ownership changes. Highlights included Warren Buffett’s Berkshire Hathaway (BRK.A)(BRK.B) revealing a new stake in Google parent Alphabet (GOOG)(GOOGL), and activist investor Third Point building new positions in Norfolk Southern (NSC) and Union Pacific (UNP) amid the two railroad companies’ mega $85B merger attempt.

For the week, the S&P 500 (SP500) gained +0.1%, while the blue-chip Dow (DJI) added +0.3%. The tech-heavy Nasdaq Composite (COMP:IND) slipped -0.5%. Read a preview of next week’s major events in Seeking Alpha’s Catalyst Watch.

Seeking Alpha’s Calls Of The Week

Realty Income’s (O) Next Growth Engine Is Here.

Petrobras (PBR): Record Output, Macro Tailwinds.

Energy Transfer (ET) Looks Ready For A Recovery.

Rithm Capital (RITM): Good Setup For Call Options.

Roblox (RBLX): Buy The Dip As Bookings Accelerate.

Enbridge (ENB): Limited Upside, Growth Prospects.

It’s Time To Take Profits On Celestica (CLS) Stock.

Pressing Pause On IONQ, And Loading Up On QTUM.

Flowers Foods (FLO) Is A Sell Until The Dividend Is Cut.

Medical Properties Trust (MPW): Warning Signs Flashing.

Weekly Movement

U.S. Indices
Dow +0.3% to 47,147. S&P 500 +0.1% to 6,734. Nasdaq -0.5% to 22,901. Russell 2000 -1.8% to 2,388. CBOE Volatility Index +3.9% to 19.83.

S&P 500 Sectors
Consumer Staples +0.6%. Utilities -1.2%. Financials -0.7%. Telecom -0.8%. Healthcare +3.9%. Industrials -0.9%. Information Technology +0.5%. Materials +0.9%. Energy +2.5%. Consumer Discretionary -2.7%. Real Estate -0.9%.

World Indices
London +0.2% to 9,698. France +2.8% to 8,170. Germany +1.3% to 23,877. Japan +0.2% to 50,377. China -0.2% to 3,990. Hong Kong +1.3% to 26,572. India +1.6% to 84,563.

Commodities and Bonds
Crude Oil WTI +0.6% to $60.09/bbl. Gold +2.1% to $4,094.2/oz. Natural Gas +5.8% to 4.566. Ten-Year Bond Yield -0.2 bps to 4.148.

Forex and Cryptos
EUR/USD +0.48%. USD/JPY +0.73%. GBP/USD +0.09%. Bitcoin -5.9%. Litecoin -3.1%. Ethereum -6.7%. XRP -0.3%.

Top S&P 500 Gainers
Albemarle (ALB) +18%. Eli Lilly and Company (LLY) +11%. Cisco Systems (CSCO) +10%. Becton, Dickinson and Company (BDX) +9%. Merck & Co. (MRK) +8%.

Top S&P 500 Losers
Iron Mountain (IRM) -12%. AppLovin (APP) -10%. Qnity Electronics (Q) -10%. Molina Healthcare (MOH) -10%. Dell Technologies (DELL) -9%.

Where will the markets be headed next week? Current trends and ideas? Add your thoughts to the comments section.