Market Overview: Stocks Hit New Highs
Today’s market saw significant gains, with the S&P 500 breaking records. It has increased by 3.3% in the last month and 10% over the past three months. The Nasdaq 100 also reached a new high, climbing 4.7% in one month and 12.5% in three months. Meanwhile, the Nasdaq Composite rose by 5.5% in one month and 14% over three months.
Interestingly, the relative strength index (RSI) has crossed into what traders refer to as “overbought” territory—above 70. While this doesn’t necessarily indicate an impending drop, it does spark some caution among traders. The NYSE composite is just 0.4% away from its recent peak, and the Dow Jones industrial average sits 0.3% from its new high. Notably, the Russell 2000 has climbed 4.9% in the last three days, now up 5.6% from its recent high.
Jim Cramer remarked on the market’s current state, claiming, “I’ve never seen anything like this in the ’80s and ’90s. Money has raised Wall Street like a gang of thugs.” He suggested that the market might be experiencing “overbuying,” especially since most of the Dow 30 stock’s relative strength sits above the 70 RSI mark. Only nine stocks in the Nasdaq 100 are currently considered “overbought,” with Alphabet and Apple among the few standout performers.
Specifically, Apple’s stock has shown solid growth, rising 9% in the last week and 12.4% this month alone. In fact, since Christmas 2024, it’s increased by about 10%. Cramer emphasized his own investment in Apple, stating, “I own it, don’t replace it.” His last purchase was in April 2014, and that position has appreciated by an impressive 1,200%.
In terms of ETFs, the Investco S&P 500 Equal Weight ETF (RSP) is just 0.33% away from its November high, having risen 2.4% so far. The first Trust Nasdaq-100 Equal Weight Index Fund (QQEW) is 1.7% off its July peak, and it has increased by 1.7% over the past three days. Meanwhile, the first Trust Dow 30 Equal Weight ETF (EDOW) achieved a new high today, experiencing a 2.43% rise in August.
On the biotech front, CNBC contributor Josh Brown highlighted the S&P Biotech ETF (XBI), which is up 3.9% for the week but remains 5% below its February high. The Ishares Biotech ETF (IBB) has seen a 3.6% increase in the last three days, although it sits 15% away from its November high.
Looking ahead, Advance Auto Parts is set to report its quarterly numbers on “Squawk Box” tomorrow morning. The stock has surged 86% since its last report three months ago. Interestingly, it remains 11% below its 52-week high, while competitors O’Reilly and AutoZone have also seen their stocks grow 16% and 11% in the past three months, respectively.
Cisco Systems’ CEO Chuck Robbins will appear on “Squawk on the Street” at 9 AM alongside Carl Quintanilla, David Faber, and Cramer. On Wednesday afternoon, Cisco exceeded both revenue and earnings expectations, and its fiscal year forecast was optimistic. The stock has increased by 3.4% in August and 14% in the last three months, with Robbins noting a growing interest from major tech firms in AI-enhancing devices. More details are expected during tomorrow’s live show.
