Individual Investor bears dance to a 9-month high - AAII
S&P 500, Nasdaq modestly higher, Dow edges green
Cons Discr leads S&P 500 sector gainers; Comms Srv weakest group
Euro STOXX 600 index up ~0.6%
Dollar slips; gold edges up; crude gains; bitcoin up ~1.3%
U.S. 10-Year Treasury yield falls to ~3.94%
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INDIVIDUAL INVESTOR BEARS DANCE TO A 9-MONTH HIGH - AAII
Pessimism among individual investors over the short-term outlook for the U.S. stock market surged to its highest level since early November 2023 in the latest American Association of Individual Investors (AAII) Sentiment Survey. With this, both optimism and neutral sentiment declined.
Meanwhile, about half of investors surveyed believe the Fed's decision to keep rates unchanged at last week's FOMC meeting was the right thing to do.
AAII reported that bearish sentiment, or expectations that stock prices will fall over the next six months, jumped 12.3 percentage points to 37.5% (highest since 50.3% on Nov. 2, 2023). Bearish sentiment is above its historical average of 31.0% for the second time in nine weeks.
Bullish sentiment, or expectations that stock prices will rise over the next six months, declined 4.3 percentage points to 40.5%. Bullish sentiment is above its historical average of 37.5% for the 39th time in 40 weeks.
Neutral sentiment, or expectations that stock prices will stay essentially unchanged over the next six months, fell 7.9 percentage points to 22.0%. Neutral sentiment is now "unusually low" and is below its historical average of 31.5% for the fifth-straight week.
With these changes, the bull-bear spread tumbled 16.6 percentage points to 3.1% from 19.7% last week. The bull-bear spread is below its historical average of 6.5% for the first time in 14 weeks.
In this week's special question, AAII asked its members what they thought about the Federal Reserve's decision to keep interest rates unchanged at last week's FOMC meeting.
Here is AAII's graphic showing how they responded:
(Terence Gabriel)
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FOR FRIDAY'S EARLIER LIVE MARKETS POSTS:
WALL STREET MIXED, BUT ON PACE FOR WEEKLY LOSSES - CLICK HERE
S&P 500 INDEX: WHIPLASH - CLICK HERE
AI RALLY'S FIRST SETBACK "OVERDUE" - DWS CIO - CLICK HERE
STOXX 600 SET FOR FURTHER 10% DRAWDOWN - BOFA - CLICK HERE
EUROPEAN SHARES TURN POSITIVE FOR THE WEEK - CLICK HERE
EUROPEAN STOCK FUTURES EDGE UP - CLICK HERE
TURBULENT WEEK ENDING ON A HIGH -CLICK HERE
AAII08092024 https://tmsnrt.rs/3LZ0l3r
AAIISQ08092024 https://tmsnrt.rs/4fHemAj
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