Liontree Weekly Update
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Liontree Weekly Update
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202620252024

It was a busy week with a lot of interesting updates across AI (of course), media entertainment, wearables, and cable (to name a few) but I’d say Meta’s Muse was of particular note given the breadth of its stock and market impact this week. While Meta shares themselves were up a stunning ~+13%, it also helped drive the SOX up +6.3%, while pressuring a slew of “consumer inertia” stocks (see Theme #2). All in all, Nasdaq hit a new record high earlier this week and the S&P 500 is only 1% from its August record high. However, small caps continue to be under pressure as interest rate yields maintained their ascent.

It was a volatile week on multiple fronts. The Fed hiked rates +25bps on Wednesday to 3.75-4% which was largely as expected, but the tone was a bit more hawkish than anticipated. That coupled with an AI-fear driven selloff sent the Philadelphia Semiconductor Index down ~5.8% on Monday which was its worst session since July. The major indices came back but still closed the week mixed (Dow fell -1.7%, S&P 500 -0.08%, Russell 2000 -1.5%, while Nasdaq rallied +0.72%). Oil above $95/barrel and the hotter-than-expected August CPI print from last week continued to weigh on rate-sensitive names as well.

On the 25th anniversary of September 11th, this week's edition comes on a day of reflection. As we pause to honor and remember all those lost, we at LionTree are reminded of the enduring lesson that we are strongest when we emerge from disruption together.