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Weekly NewsletterOctober 1, 2024

This Week on Wall Street – Week of September 30th

We kicked off the week with a rebound in stocks, fueled by dip-buying after last week’s sell-off.

This Week on Wall Street – Week of September 30th

Market Commentary

Equity trading was relatively quiet on Monday as the S&P 500 finished higher following three consecutive weeks of gains. 

Investors are now focused on Friday’s U.S. Jobs Report, which will provide a temperature check on the economy and guide expectations for Federal Reserve rate moves. Markets have already priced in another 75 basis points of cuts by the end of 2024, the trajectory of which will largely depend on inflation trends and overall economic health. Ideally, markets hope for a gradual return to neutral interest rate levels, minimizing the policy force placed on the economy in either direction. However, a sharp rise in unemployment or a significant slowdown in economic activity, which would be indicated in data like the jobs report or ISM surveys, could prompt the Fed to accelerate rate cuts to support the economy. 

From a technical perspective, the S&P 500 remains on solid footing. After the August pullback, the index has maintained key support levels, without showing any major warning signs. However, trading volume, particularly on up days, has decreased, suggesting softened conviction in the continued upward momentum. 

Our Newton models indicate that international equities, particularly in emerging markets, are favored over U.S. equities. China’s recent announcement of substantial stimulus measures to support its stock market and broader economy has boosted these markets. Cyclical sectors like Materials, Industrials, and Consumer Discretionary are leading the charge. 

Economic Releases This Week

Monday: Fed Chair Powell and Fed Governor Bowman Speak

Tuesday: S&P Manufacturing PMI, ISM Manufacturing, Fed Governor Cook Speaks, Fed Presidents Barkin, Bostic, and Collins Speak

Wednesday: ADP Employment, Fed Governor Bowman and Fed President Barkin Speak

Thursday: Initial Jobless Claims, S&P Services PMI, ISM Services

FridayUS Jobs Report, Fed President Williams Speaks

Stories to Start the Week

Roughly 45,000 dockworkers at 36 ports on the East and Gulf Coasts could go on strike as soon as tomorrow 

GM led a $50m investment round for lithium extraction startup EnergyX, a move meant to help them towards their EV transition target of 2035

The number of Northerners heading to college at Southern public schools has skyrocketed 84% over the past two decades and jumped 30% from 2018 to 2022 

UFC’s parent company agreed to pay $375 million to settle a lawsuit accusing it of tamping down fighters’ pay by making it hard for them to leave for rival promoters 

What is Newton?

Our Newton model attempts to determine the highest probability of future price direction by using advanced algorithmic and high-order mathematical techniques on the current market environment to identify trends in underlying security prices. The Newton model scores securities over multiple time periods on a scale of 0-20 with 0 being the worst and 20 being the best possible score.

Trend & level both matter. For example, a name that moves from an 18 to a 16 would signal a strong level yet slight exhaustion in the trend.

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Technical trading models are mathematically driven based upon historical data and trends of domestic and foreign market trading activity, including various industry and sector trading statistics within such markets. Technical trading models, through mathematical algorithms, attempt to identify when markets are likely to increase or decrease and identify appropriate entry and exit points. The primary risk of technical trading models is that historical trends and past performance cannot predict future trends and there is no assurance that the mathematical algorithms employed are designed properly, updated with new data, and can accurately predict future market, industry and sector performance.

About This Series

Last Week on Wall Street

Last Week on Wall Street is Waterloo Capital's weekly market recap, published every Monday morning to keep advisors and clients informed on the most significant developments from the prior trading week. Each edition synthesizes equity market performance, fixed income moves, macroeconomic data releases, and notable corporate earnings into a concise, actionable read — cutting through the noise so our readers can focus on what actually matters for long-term wealth management.

Our research team tracks the S&P 500, Dow Jones Industrial Average, NASDAQ Composite, and 10-year Treasury yield as primary benchmarks, while also covering sector rotations, commodity swings, and policy shifts from the Federal Reserve and Washington. When major cross-asset moves occur — such as the historic gold selloff covered in this edition — we dig into the mechanics and the likely ripple effects on diversified portfolios, helping clients contextualize volatility without reacting impulsively.

Our Research Approach

Evidence-Based Perspective for Long-Term Investors

Waterloo Capital's investment research is grounded in fundamental analysis and long-term thinking. We believe that disciplined, evidence-based investing — anchored in each client's specific goals, risk tolerance, and time horizon — consistently outperforms reactive decision-making driven by short-term headlines. Our weekly commentary is designed to inform, not alarm: we put market moves in their proper historical context so that clients can hold conviction in their financial plans through periods of uncertainty.

As an SEC-registered investment advisor headquartered in Austin, Texas, with offices across the Southwest and Southeast, Waterloo Capital serves high-net-worth individuals, families, and institutions. Our advisors use proprietary research like this weekly recap as one input among many — alongside in-depth portfolio reviews, tax planning, and estate strategy — to deliver comprehensive wealth management tailored to each client relationship. To learn more about how our investment philosophy and ongoing market research can serve your financial future, contact our team directly.

Investment Disclosure: The information contained in this article is provided for informational and educational purposes only and does not constitute investment advice, a recommendation, or an offer or solicitation to buy or sell any security. Past performance is not indicative of future results. All investing involves risk, including the possible loss of principal. Waterloo Capital, LP is an SEC-registered investment advisor. Registration does not imply a certain level of skill or training. Please consult with a qualified financial professional before making any investment decisions.

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This Week on Wall Street – Week of September 30th | Waterloo Capital