Every weekday, the CNBC Investing Club with Jim Cramer releases the Homestretch—an actionable afternoon update for the last hour of trading on Wall Street. On Wednesday, the S&P 500 reached a new record high with no specific catalyst for the move. The market saw a continuation of the theme with oil prices sliding and China’s market giving back recent gains, allowing U.S. stocks to rally. The Federal Reserve’s September policy meeting minutes showed some disagreement among central bankers on how aggressively to cut interest rates, resulting in a jumbo 50-basis-point reduction to begin the cutting cycle. Financials were leading the market higher, with Morgan Stanley hitting a multiyear high and Wells Fargo remaining flat ahead of Friday’s earnings release. Honeywell also saw solid follow-through after announcing plans to spin off its advanced materials business.
Semiconductor stocks were mixed, with Nvidia and Advanced Micro Devices slightly down while Broadcom hit a new all-time high. AMD is set to hold its Advancing AI event on Thursday, which analysts believe could be a catalyst for the stock. There are expectations for AMD to introduce new products and potentially raise its full-year AI sales forecast. Analysts are also curious about whether AMD will provide a 2025 AI sales target and announce another cornerstone customer for its AI chips. Additionally, there are questions about the ZT Systems acquisition announced in August. There are no major earnings after Wednesday’s closing bell or Thursday’s open, with September CPI expected to show a continued deceleration in inflation.
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In summary, the market experienced a record high on Wednesday, driven by factors such as sliding oil prices and China’s market performance. The Federal Reserve’s minutes from the September policy meeting showed disagreement among central bankers on interest rate cuts, leading to a jumbo reduction to begin the cutting cycle. Financials and semiconductor stocks were notable movers in the market, with expectations for upcoming events such as AMD’s Advancing AI event. Subscribers to the CNBC Investing Club with Jim Cramer receive trade alerts before Jim makes a trade, with specific waiting periods observed before executing trades discussed on CNBC TV. The information provided by the Investing Club is subject to terms and conditions, privacy policy, and disclaimer, with no guaranteed outcomes or profits.
