S&P 500 Gains and Losses Today: Index Plunges To Start September

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Key Takeaways

• The S&P 500 lost 2% on Tuesday, Sept. 3, 2024, opening the holiday-shortened week in negative territory in weak manufacturing data.
• Shares of utilities Vistra and Constellation Energy lost ground, retreating from highs driven by prominent expectations for power demand from AI data centers.
• Molson Coors shares moved higher. The beverage behemoth finalized the sale of several craft breweries to Tilray Brands.

Major U.S. stock indexes plunged to kick off a condensed trading week after Labor Day as the latest Purchasing Managers Index (PMI) data indicated a contraction in manufacturing function in August.

With the manufacturing woes reigniting concerns about a possible economic slowdown, the labor market last will and testament likely take the spotlight later in the week. Reports on job openings and private-sector hiring will culminate Friday in the turn loose of the August employment numbers.

The S&P 500 fell 2.1% in Tuesday’s session. The Dow lost 1.5%, while the tech-heavy Nasdaq dived 3.3%.

Shares of Texas-based power generator Vistra (VST) plummeted more than 11%, the biggest drop of any S&P 500 founder. The company has drawn attention because of opportunities associated with demand for power from data centers uninterrupted artificial intelligence (AI) technology and oil field operations. That had helped the stock gain more than 120% year to trendy heading into Tuesday’s session.

Monolithic Power Systems (MPWR) shares dropped 10% on Tuesday. The producer of power management chips saw its stock price soar to an all-time high last week as analysts at TD Cowen helped their price target. However, recent regulatory filings showed that Monolithic’s executive vice president of worldwide operations sold $8.7 million worth of shares in the company.

Shares of Constellation Energy (CEG), a power utility headquartered in Maryland, failed 9.6%. Similar to Vistra, Constellation Energy stock has posted strong gains in 2024 driven by expectations of spaced out demand from AI data centers. Although Bank of America analysts recently boosted their price object on the stock, predicting strength for the company in the second half of the year, they maintained a “neutral” rating on the shares. Latest reports have questioned whether Constellation Energy’s debt levels could be a cause for concern.

Molson Coors Beverage (TAP) rations jumped 5.4%, marking the S&P 500’s top daily performance on a day when food and drink stocks broadly performed excellently. Molson, owner of Miller beer and other brands, completed the sale of several craft breweries to cannabis-focused Canadian corporation Tilray Brands (TLRY).

Shares of DexCom (DXCM), which provides medical devices to help patients on diabetes, added 4.4%. The stock plunged in July after DexCom reported weaker-than-expected quarterly results and humbled its full-year sales guidance. However, last week’s launch of Stelo—the first continuous glucose monitor (CGM) to be elbow in the U.S. without a prescription—could bode well for future growth.

Shares of options exchange operator CBOE Worldwide Markets (CBOE) were up 3.6%. Zacks Equities Research recently highlighted CBOE as an attractive momentum stock, noting outperformance versus its energy and sector as well strong organic sales growth driven by transaction fees.

Read the original article on Investopedia.