Final Day of Trading for August Looks Bad for Nasdaq

Despite some excellent days of trading in August, as the month comes to an end, Nasdaq is looking like it might post two consecutive months of losses.

Before the market opens for Friday, the last day of trading this month, the Nasdaq Composite is down about 0.5%. If it does close with a decrease, the tech-heavy stock index could lose investor confidence.

The other two major indices, the Dow Jones and the S&P 500, are both up about 1.2% for the month. What we may see for September is a much better end-of-month set of data. With interest rates coming and inflation decreasing, as well as recent positive unemployment reports, the US economy is set for a better September than August.

Both the S&P 500 and the Nasdaq Composite closed low on Thursday, but the Dow Jones closed with an increase of 0.59%. Part of the reason for poor numbers from the two indices yesterday is the unexpected turn that Nvidia (NVDA) took after posting its earnings report for the quarter. The company did well, but the stock price dropped by 6.38%, which sent a ripple effect through the stock market and effected other stocks.

PCE Report to Hit Market Today

On Friday, as trading opens up, the market will have a chance to respond to the personal consumption expenditure (PCE) index. This report is a good indication of where inflation is at and how the economy is doing.

The Federal Reserve is sure to be considering this report and to take it into account as they plan for September interest rate cuts. Both the core and headline PCE are expected to increase by 0.2%, and if so, then that marginal increase is not likely to cause a significant stock market shift. Instead, we may see a small uptick today, especially if the report come in right on the expected mark.

This report comes quickly after a week of retail earnings reports. American Eagle, Gap, and Abercrombie & Fitch all posted their quarterly earnings this week. The results were a mixed bag, which leaves the retail market looking less than positive overall.