​EBC Markets Briefing | Magnificent 7 keep shining

The three major US stock indexes closed higher on Monday with the S&P 500 and the Nasdaq 100 notching intraday record high closes, ahead of the Fed's crucial policy meeting later this week.

Tesla's gains boosted the S&P 500 consumer discretionary sector 1.1% to its highest level in nearly nine months. Meanwhile, Alphabet helped lift the communication services sector up 2.33%.

Sales rout this year in a number of European markets continued in August – the 8th consecutive month of declines - amid fierce competition from China's BYD and a backlash against CEO Elon Musk.

Earlier this year Tesla representatives in Europe argued that the sales decline was largely because production was shifting to a revamped version of the Model Y that had been Europe's top-selling car in 2023.

Alphabet joined other tech giants Apple and Microsoft in hitting a $3 trillion valuation. A US court earlier this month allowed the company to retain control of Chrome and Android.

The company's shares trades at around 23 times its forward earnings - the lowest among the "Magnificent 7" - compared to its five-year average 22, according to data compiled by LSEG.

RSI suggested the S&P 500 rose to the overbought territory, a sign of buying fatigue in store. The index could be heading back to 6,600 rather than notching a fresh peak.

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