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Another quarter is in the books for U.S. equity markets and little has changed. Though investors encountered some turbulence, bulls registered yet another victory as the S&P 500 Index ETF ((SPY - Free Report) ) rose for its fourth straight month.
Despite increasing global tensions in the Middle East and Europe, a massive jobs revision, and concerns over the “Yen Carry Trade,” the S&P 500 climbed the wall of worry to finish nearly 5% for the quarter. As is often the case, liquidity and the Federal Reserve were the primary catalysts for stocks ahead of Q4 and Q4 earnings season.
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar
Industry Trends
Artificial Intelligence Stocks Continue to Thrive
A margin slowdown at Nvidia ((NVDA - Free Report) ) and a short report against AI juggernaut Super Micro Computer ((SMCI - Free Report) ) made it look like the AI revolution may be slowing. However, massive earnings print from database leader Oracle ((ORCL - Free Report) ) helped to quell concerns. Furthermore, CEO Larry Ellison divulged that he and Elon Musk pleaded with Nvidia CEO Jensen Huang for more GPUs.
Palantir Technologies ((PLTR - Free Report) ), which builds data analytics platforms that help governments and organizations analyze large data sets using AI, was a big winner, gaining some 44.89% in Q3. PLTR shares were driven by a jump in quarterly earnings (+80% year-over-year) and its inclusion into the S&P 500 Index.
Image Source: Zacks Investment Research
Utilities Stocks Power the AI Revolution
The gold rush taught investors that the sure-fire way to score monster profits is often by selling the “picks and shovels.” As the race for AI supremacy heats up, mega-cap tech companies are investing billions in energy-hungry data centers needed to train AI models. Utility stocks were the main beneficiaries in Q3. Constellation Energy ((CEG - Free Report) ) bolted nearly 30% for the quarter after Microsoft ((MSFT - Free Report) ) inked a landmark nuclear deal with the company to reopen “Three Mile Island.”
Space Stocks go Orbital
Until recently, a thriving space industry has been more of a pipedream than a reality due to the difficulty of getting to space and the high costs associated with the business. However, the bullish action in space stocks in Q3 may be an early hint that space is a burgeoning trend. Intuitive Machines ((LUNR - Free Report) ) went into orbit and gained 150% for the quarter after the space exploration company scored a nearly $5 billion deal with NASA. Meanwhile, Rocket Lab ((RKLB - Free Report) ) more than doubled after the leader in launch services and space systems successfully launched and deployed 5 satellites to low earth orbit.
Image Source: Zacks Investment Research
China Stimulus Sparks Epic Short Squeeze
Following years of stagnation, Chinese stocks exploded, which was the story of the end of the quarter. The rally was sparked by the Chinese government’s aggressive stimulus plan, which included rate cuts and support for the ailing real estate sector. Meanwhile, the combination of fiscal stimulus and high short interest led to a scorching short squeeze in Chinese ADRs such as Futu Holdings ((FUTU - Free Report) ) and JD.com ((JD - Free Report) ).
Bottom Line
The equity bull market continued in Q3 2024. Market areas such as space, AI, and China thrived.
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Q3 Review: Top Stock Market Trends
End of the Third Quarter 2024
Another quarter is in the books for U.S. equity markets and little has changed. Though investors encountered some turbulence, bulls registered yet another victory as the S&P 500 Index ETF ((SPY - Free Report) ) rose for its fourth straight month.
Despite increasing global tensions in the Middle East and Europe, a massive jobs revision, and concerns over the “Yen Carry Trade,” the S&P 500 climbed the wall of worry to finish nearly 5% for the quarter. As is often the case, liquidity and the Federal Reserve were the primary catalysts for stocks ahead of Q4 and Q4 earnings season.
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar
Industry Trends
Artificial Intelligence Stocks Continue to Thrive
A margin slowdown at Nvidia ((NVDA - Free Report) ) and a short report against AI juggernaut Super Micro Computer ((SMCI - Free Report) ) made it look like the AI revolution may be slowing. However, massive earnings print from database leader Oracle ((ORCL - Free Report) ) helped to quell concerns. Furthermore, CEO Larry Ellison divulged that he and Elon Musk pleaded with Nvidia CEO Jensen Huang for more GPUs.
Palantir Technologies ((PLTR - Free Report) ), which builds data analytics platforms that help governments and organizations analyze large data sets using AI, was a big winner, gaining some 44.89% in Q3. PLTR shares were driven by a jump in quarterly earnings (+80% year-over-year) and its inclusion into the S&P 500 Index.
Image Source: Zacks Investment Research
Utilities Stocks Power the AI Revolution
The gold rush taught investors that the sure-fire way to score monster profits is often by selling the “picks and shovels.” As the race for AI supremacy heats up, mega-cap tech companies are investing billions in energy-hungry data centers needed to train AI models. Utility stocks were the main beneficiaries in Q3. Constellation Energy ((CEG - Free Report) ) bolted nearly 30% for the quarter after Microsoft ((MSFT - Free Report) ) inked a landmark nuclear deal with the company to reopen “Three Mile Island.”
Space Stocks go Orbital
Until recently, a thriving space industry has been more of a pipedream than a reality due to the difficulty of getting to space and the high costs associated with the business. However, the bullish action in space stocks in Q3 may be an early hint that space is a burgeoning trend. Intuitive Machines ((LUNR - Free Report) ) went into orbit and gained 150% for the quarter after the space exploration company scored a nearly $5 billion deal with NASA. Meanwhile, Rocket Lab ((RKLB - Free Report) ) more than doubled after the leader in launch services and space systems successfully launched and deployed 5 satellites to low earth orbit.
Image Source: Zacks Investment Research
China Stimulus Sparks Epic Short Squeeze
Following years of stagnation, Chinese stocks exploded, which was the story of the end of the quarter. The rally was sparked by the Chinese government’s aggressive stimulus plan, which included rate cuts and support for the ailing real estate sector. Meanwhile, the combination of fiscal stimulus and high short interest led to a scorching short squeeze in Chinese ADRs such as Futu Holdings ((FUTU - Free Report) ) and JD.com ((JD - Free Report) ).
Bottom Line
The equity bull market continued in Q3 2024. Market areas such as space, AI, and China thrived.