USA – September Market Update

September has been a pivotal month for the U.S. economy and stock markets, with key economic indicators reflecting both growth and challenges. From inflation updates to labor disputes, the dynamics across industries offer insights into the ongoing economic recovery and future projections. Let’s dive into the essential highlights and stock market trends that have shaped the U.S. financial landscape this past month.

USA economy update

  • In a bold move on Wednesday, September 18, the Federal Reserve cut the rates by half a percentage point—the first reduction since the early days of the COVID pandemic—as signs of moderating inflation and a weakening labor market emerge.
  • In a September 5 speech, Donald Trump outlined his vision to cut spending, lower taxes, and position the U.S. as the global hub for cryptocurrency, while also proposing to end taxes on tips and Social Security payments.
  • As of October 1, tens of thousands of dockworkers from the International Longshoremen’s Association have gone on strike indefinitely at major U.S. ports, disrupting container traffic and threatening significant economic disruption. This marks the first shutdown of its kind in almost 50 years.
  • The Conference Board’s consumer confidence index plunges to 98.7 this September from 105.6 in August, marking the steepest decline in three years. Respondents express growing concerns over job stability and rising inflation.
  • Vice President Kamala Harris plans to unveil a bold proposal offering small businesses a $50,000 tax deduction for startup expenses, significantly increasing the current $5,000 deduction.
  • The key inflation gauge for the Federal Reserve shows a 12-month rate of 2.2% in August, falling below expectations. The PCE price index rose just 0.1% for the month, the lowest inflation rate since February 2021, moving closer to the Fed’s 2% target and potentially paving the way for future interest rate cuts.

USA Stock Market Updates

September was a fantastic month for U.S. markets! The S&P 500 increased 4.22% to $5,762.48, the Dow Jones rose 3.40% to $42,330.15, and the Nasdaq Composite led with a 6.14% jump to $18,189.17. Even the Russell 2000 saw solid growth, climbing 3.76% to $2,229.97—an impressive month of gains all around!

  • Regeneron and Sanofi shares rose on Friday, September 27 after the FDA approved their drug, Dupixent, for treating chronic obstructive pulmonary disease (COPD), demonstrating a significant reduction of at least 30% in the annualized rate of moderate to severe cases in Phase 3 studies. Previously, Dupixent was approved for other conditions, including atopic dermatitis and asthma.
  • Estée Lauder shares surged 10% on Thursday, September 26, following China’s announcement of an economic stimulus, making it one of the top performers in the S&P 500. The stimulus is expected to boost consumer sentiment, easing concerns about sales in China, where the company generates nearly a third of its revenue.
  • Uber is set to launch driverless cars in the UAE through a partnership with WeRide, adding its robotaxi fleet to the platform later this year. WeRide, which secured the UAE’s first and only autonomous vehicle license in 2023, is paving the way for expanded autonomous transportation in the region.
  • Visa shares dropped on Tuesday, September 24 after the U.S. Department of Justice filed an antitrust lawsuit, accusing the company of using monopolistic tactics to dominate the debit card market. This lawsuit is part of a broader wave of recent antitrust actions by the DOJ and Federal Trade Commission.
  • Smartsheet shares jumped over 6% on Tuesday, September 24, following news of its $8.4 billion acquisition by Blackstone and Vista Equity Partners. The deal offers Smartsheet investors $56.50 in cash per share.

US top gainer and top loser stocks for September

Summary

The U.S. continues to navigate a complex economic environment, marked by inflationary pressures and labor challenges. However, with positive stock market performance and strategic corporate developments, the overall outlook remains cautiously optimistic. The ongoing strike and political decisions will be pivotal in shaping the months ahead.

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