STOCK MARKET: What’s likely to move the market

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Traders work on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., September 4, 2024.

Brendan Mcdermid | Reuters

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Here’s what CNBC TV’s producers were watching as the major averages made a stunning comeback from the day’s lows and what’s on the radar for the next session.

The big stock story of the day

Nvidia shares swung by about $10 from the session lows to the day’s high. The stock ended the day higher by 8%.
The stock jumped as CEO Jensen Huang spoke at the Communacopia conference saying Nvidia’s key Blackwell chip is in full demand and fears of a slowdown or production problems aren’t a concern. Investors reacted to his optimism.
The stock is still 17% from the June 20 high, but it’s up 136% so far in 2024.
The S&P tech sector was up 3.25% on Wednesday. It is 8% from the 52-week high.

Nvidia’s year-to-date performance

The sectors

CNBC’s Mike Santoli, who always does a great job of explaining the market, made some great points. We’ll be following up on them Thursday.
He explained that Wednesday’s roughly 154-point turnaround for the S&P 500 — from the morning’s low to the high of the day near the end of the session — had to do with rising bond yields. The Dow swung about 910 points from its low to the day’s high, while the Nasdaq Composite saw a roughly 633-point jump.
Recently as yields have gone up, stocks have fallen.
Because bond yields have retreated so quickly in the last few months, investors have grown nervous that they were dropping due to fears about the economy. In turn, this hurt confidence in stocks.
Wednesday’s rise in yields, which also began in the late morning, as Santoli explained, gave a new boost of confidence to stock investors.
The sectors that have done best in the last three months are rate-sensitive — for instance, real estate is up 18% in three months — as investors look for yield in the face of falling rates.
Utilities are up about 10% in three months.
Financials are up 8.6% in three months.
Energy and communication services are the weakest S&P sectors in the last three months, respectively down 6% and 5%.

Insurers

We’ll dive back into the insurance sector after Wednesday’s drop. CNBC TV’s Contessa Brewer covers the beat. She noted the fall for Travelers, down 3.16%, and Hartford Financial, down 2.4%. W.R. Berkley dropped 2.36%, and Aon fell 1.8%.
Brewer’s sources say it may have to do with investor concern that an election win by Vice President Kamala Harris would lead to more litigation and fewer protections for businesses. This is a big issue for insurers across the country right now. Some investors are also worried that a Harris victory would lead to less consolidation in the industry.
The sector has been strong in the last three months.
Progressive is up about 20% in that time.
Aon up 17.4% in three months.
Hanover Insurance up 15.4%.
Arthur J. Gallagher up 15% in three months.
Hartford Financial up 14.7% in three months.
Willis Towers Watson is up 12% in three months.

Progressive shares over the past three months