Key Takeaways
- The S&P 500 was essentially flat on Tuesday, Sept. 17, 2024, closing less than 0.1% higher on the last day before the Fed’s key rate announcement.
- Enphase Energy shares soared after the solar tech firm launched a new home battery product and energy management software.
- Shares of Accenture lost ground amid reports that the consultancy firm will push back employee promotions to June from December.
Major U.S. equities indexes finished little changed on the final trading day before the Federal Reserve’s eagerly awaited interest-rate decision, with questions lingering about the magnitude of a likely rate cut.
The S&P 500 eked out a gain of less than 0.1% on Tuesday, extending its streak of positive trading sessions to seven. The Nasdaq was up 0.2%, while the Dow lost ground in the afternoon to close with a loss of less than 0.1%.
Enphase Energy (ENPH) shares soared 6.3%, notching the top performance in the S&P 500, after the solar technology firm launched a new home battery product in Belgium. Enphase also introduced a new energy management software that uses artificial intelligence (AI) to optimize energy usage, including the capacity to integrate third-party electric vehicle (EV) chargers and heat pumps.
Shares of business IT provider Hewlett Packard Enterprise (HPE) jumped 5.6% after Bank of America upgraded the stock to “buy.” Analysts cited numerous catalysts for the company, including increased demand for AI products. The team also believes Hewlett Packard Enterprise can cut costs under its new chief financial officer (CFO) while generating revenue and synergies through its intended acquisition of Juniper Networks (JNPR).
Health regulators in Canada approved an updated COVID-19 vaccine from Moderna (MRNA) to be used in fall immunization campaigns in the country. Officials are continuing with their expedited review of competing vaccines from Pfizer (PFE) and Novavax (NVAX). Moderna shares advanced 4.1% on the day.
Accenture (ACN) shares fell 4.8%, losing more than any other S&P 500 stock on Tuesday, following reports that the business strategy and consulting giant plans to delay staff promotions by six months. According to Bloomberg, Accenture told employees that the majority of promotions will now occur in June—a departure from the firm’s typical cycle of awarding promotions in December. The move comes amid a challenging environment for the professional services business.
Shares of Edwards Lifesciences (EW) slipped 3.1%, reversing gains posted in the previous session amid speculation that the medical device maker could be on the radar as a possible takeover target. Truist analysts slashed their price target on Edwards stock late last week, expressing concerns about the impact of the company’s sale of its Critical Care division, which it completed at the beginning of September.
Express Scripts, the pharmacy benefit management subsidiary of health insurance giant Cigna (CI), filed a lawsuit against the Federal Trade Commission claiming that a recent report released by the regulator is defamatory against the PBM industry. Cigna shares were down 2.9% amid the heightened tensions with the antitrust regulator.