September and October are typically the worst months for the S&P 500’s (IVV) returns. Between July and August, the chart indicated a bearish double top at 5,670. Stock chart technicians would refer to the 200-day moving average below 5,200 as the next support zone.
Although stock charts do not predict where prices end up, investors are asking if stocks peaked last week. Economic fundamentals potentially deteriorated enough to imply that markets peaked last week.
For the week ended September 6, 2024, Nvidia (NVDA) led the tech sector lower, losing 12.55%. Advanced Micro Devices (AMD), which dropped by 7.66%, has higher risks than Nvidia. Customers prefer to wait for Nvidia’s Blackwell server AI release over AMD’s MI 300 AI servers.
In the PC market, Nvidia dominates AMD with its RTX 40 series.
In the energy sector, Chevron (CVX) lost 6% last week. ConocoPhillips (COP) dropped by 7.3%. WTI crude prices fell below 70%, due mostly to concerns that OPEC will not cut output sufficiently. Furthermore, a resolution to the war in Israel hurts oil prices.
Weak oil prices suggest that the global economy is weakening. China’s continued economic slump, led by falling home demand and a decline in manufacturing activity, hurts oil prices.
Chances are high that stocks peaked last week. Investors will find better bargains in the next two months as stock prices trade lower.