Welcome to our weekly newsletter where we provide an overview of the main US and UK indices, along with analyses of selected assets that are outperforming the market.
Let’s get into this week’s newsletter!
US & UK INDICES OVERVIEW
S&P 500
The S&P 500 remains a key driver of this bull market, delivering a strong 13.31% year-to-date gain that highlights the strength of America’s largest companies. September alone saw a 3.16% increase, pushing the index to a new record high of $6,671.
This past week demonstrated the market’s resilience. After a shaky start, the index rebounded quickly, finishing the week up 1.22%. Friday’s 0.49% gain capped off the week, reflecting continued confidence from institutional investors.
On the technical side, support levels remain solid, offering stability if profit-taking occurs. For those hesitating to invest, the S&P’s consistent performance reinforces the strategy of staying invested over trying to time the market perfectly.
Dow Jones
The Dow Jones is having an impressive year, up 8.86%, and September’s 1.69% gain shows its momentum isn’t slowing. The key takeaway here is its recent breakout.
Last month, the Dow pushed past its 2024 high of $45,073. This signaled a psychological shift where major investors are willing to pay more for good assets.
After this initial breakout, the Dow did what technical analysts like to see, it dipped back to test that old resistance level (now support), found solid footing, and then hit new record highs.
This kind of market action suggests to long-term investors that the current upward trend is likely to continue, rather than being a temporary jump.
Nasdaq 100
The Nasdaq 100 is shaping up to be this year’s standout performer, boasting a 17.2% gain so far. September alone has so far added another 5.17%, with technology stocks once again leading the charge.
When the S&P 500, Dow Jones, and Nasdaq all rise together, as they are now, it usually signals broad investor confidence, not just growth in one area. This momentum suggests the current bull market is likely to continue.
FTSE 100:
Across the Atlantic, No stock better reflects the market’s current risk-on sentiment than Robinhood Markets, which has delivered an impressive 234.89% return year-to-date. Nearly 20% of those gains came in September alone, with a 3.2% jump on Friday pushing the stock to new all-time highs. These returns show the potential power of individual stock selection within a diversified portfolio. Companies that hit the right trends at the right time can provide significant returns for investors who are prepared to handle the associated volatility.
The technical indicators suggest this momentum could continue for months. However, investors should keep in mind that rapid climbs can lead to equally fast declines. Managing position sizes carefully is key when dealing with high-performing stocks like Robinhood.the FTSE 100 shows a slightly different picture. It’s up a solid 12.77% this year, but it also indicates that not all markets are benefiting equally from the current global rally.
For September, the index has gained only 0.32%, and last week it dropped 0.72%. This shows that even in a strong market, momentum can slow down.
The FTSE hit a record high of 9,357 last month but has since found it hard to stay above that level. This suggests that buyers and sellers are currently in a standoff.
But there’s no need to worry just yet. Markets often take a breather after big gains. The FTSE’s current pause might just be it gathering strength for another climb.
The level to watch is still that 9,357 high. If it breaks clearly above that, it could aim for the significant 10,000 level, offering good returns for those who wait.
PERFORMANCE REVIEW
Alphabet (Google) (GOOGL)
Google is having an incredible year. The stock is already up 34.56% year-to-date, and September has been particularly strong, adding nearly 20% to shareholder value in just three weeks.
The company’s weekly performance has been impressive, with frequent “gap-up” openings (where the stock opens significantly higher than its previous close).
When a large company like Google consistently gaps up, it usually means big investors are eager to buy the stock, rather than waiting for dips.
Since early September, the stock has shown strength, bouncing from the $207 level. This suggests that the current rally isn’t just hype, but rather a re-evaluation of the company’s future potential based on underlying factors.
For long-term investors familiar with tech cycles, Google’s current momentum is a prime example of a wealth-building opportunity.
OUTPERFORMING ASSET FOR THE WATCHLIST
Robinhood Markets (HOOD)
Perhaps no single stock better captures the current market’s risk-on sentiment than Robinhood Markets, which has delivered an almost unbelievable 234.89% year-to-date return.
September alone has contributed nearly 20% to those gains, with Friday’s 3.2% pop pushing the stock to fresh all-time highs.
These kinds of returns remind us why individual stock selection can be so powerful within a diversified portfolio.
Companies that catch the right wave at the right time can deliver life-changing returns for investors willing to accept the inherent volatility that comes with such opportunities.
The technical setup suggests this momentum could continue for months, though investors should remember that what goes up quickly can also come down just as fast. Position sizing becomes crucial with high-flying stocks like Robinhood.
Looking Ahead
Sixty percent of U.S. stocks are currently trading above their 200-day moving average, unchanged from last week. The Dow Jones, S&P, and Nasdaq are at record highs, and market activity continues to pick up this month.
Keep it simple. Keep it Sublime.
The ST Team
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