News

In a month of traders taking vacations and bleak liquidity in August, the Nasdaq index has swiftly moved from the ICU two weeks ago to the current KTV.

Goldman Sachs trader Peter Callahan believes:

While predicting the Nasdaq is not easy, bulls insist on the view that "nothing has changed" (GenAI is still on track - even if market sentiment is not, and the recovery of IT/enterprise/SW spending is imminent... not to mention stable economic growth + Fed put helping to stabilize the market), while bears believe it's time to "hold the line" (GenAI market sentiment has clearly fluctuated, major tech companies' EPS revisions are stabilizing, valuations are "average", the world is very complex - think about September's seasonality, geopolitics, elections, regulations, etc.). I may still lean towards the former, especially feeling that investors' positions in the Nasdaq at 19,500 points are "lighter" than they were at the end of June / early July, not to mention, last week's rise in corporate comments (Walmart + Cisco) and macro data points (jobless claims, retail sales) showed that concerns about the economy have passed.

But as we return from the August holiday, September is approaching - seasonally, this is the worst month for Nasdaq performance, conference season, updates on the Google antitrust case by the U.S. Department of Justice, Fed interest rate meeting / rate cut, election debates, non-farm payroll data, etc.).