Chart of the Day - Friday, September 6, 2024

Chart of the Day

🏆 Today’s Chart of the Day was shared by Willie Delwiche (@WillieDelwiche).

• The S&P 500 dropped -4.3% this week, marking its worst week since the bank crisis in March 2023. Meanwhile, the Nasdaq had its worst week since the bear market lows of October 2022, dropping -5.9%. 
   
• While the S&P 500 is only -4.5% off record highs, the Nasdaq is down twice as much (-10.9%). The weakness is appearing right on time, as September has notoriously been the worst month for stocks.
   
• Willie points out that the largest sector of the S&P 500, Technology ($XLK), had its worst week since the pandemic, dropping -7.5%. With Bonds and defensive sectors catching a bid, this is a clear flight to safety. 

Takeaway: It was a short week with the holiday on Monday, but it was still one of the worst weeks for stocks since the bull market began. The S&P 500 is less than -5% off record highs, but it's a problem that the largest and strongest areas, like Tech and Semis, are leading the decline.