Traders on the floor of the New York Stock Exchange (NYSE) are preparing for the last trading day of September, closing out a disappointing month for the market. The Dow Jones Industrial Average is down 3% month to date, while the S&P 500 is down 4.6% and the Nasdaq Composite is down nearly 6%. September is historically a down period for the market, but things are expected to turn around in October, which has been the second-best performing month for the S&P over the last 10 years, gaining an average of 2.26%.
At the Delivering Alpha Investor Summit in New York City, Wall Street professionals shared their insights and warnings about the economy and stock market. Bill Ackman, CEO of Pershing Square Capital Management, doesn’t see the Federal Reserve getting inflation back down to a 2% target due to factors such as a resurgent labor movement and high energy prices. Rick Rieder, BlackRock’s fixed income chief, said the Fed could still hike interest rates in November. The summit also highlighted investment opportunities in areas such as AI and ESG.
The U.S. Equal Employment Opportunity Commission (EEOC) has filed a lawsuit against Tesla, alleging racist harassment and retaliation against Black employees at the electric vehicle automaker. The lawsuit claims that non-Black employees at Tesla openly used racial slurs and epithets, and supervisors and managers failed to intervene. This is not the first time Tesla has faced legal action over its treatment of Black employees, with previous lawsuits and a case resulting in damages awarded to a former Black worker.
GameStop’s newly appointed CEO, Ryan Cohen, wasted no time in calling for changes in the company. In a memo to employees, Cohen emphasized the need for “extreme frugality” and scrutinizing expenses to eliminate waste. He also stated that he would not take a salary as CEO, leading by example in saving costs.
The United Auto Workers (UAW) union is expected to announce a third wave of strikes against Detroit automakers on Friday if significant progress is not made in negotiations. The union initiated strikes on September 15 at three assembly plants and expanded the stoppages to 38 parts and distribution centers last week. Talks have been ongoing with Ford Motor, showing some progress, but frustrations remain among the automakers as the strikes continue.
As September comes to a close, traders and investors will be closely watching for any market movements and developments in the ongoing economic and labor issues. The start of October brings a glimmer of hope for a turnaround in the market, but uncertainty still looms. It remains to be seen how the month ahead will unfold and if any resolution will be reached in the labor disputes.