Stifel’s Bannister has also argued for a “lost decade” for the stock market. And yet, Kostin also argues that a golden era of stock market returns is probably over. In a note earlier this month, the JPMorgan strategist Dubravko Lakos-Bujas conceded that a recession seemed off the table but said that AI investments were unlikely
Stifel’s Bannister has also argued for a “lost decade” for the stock market. And yet, Kostin also argues that a golden era of stock market returns is probably over. In a note earlier this month, the JPMorgan strategist Dubravko Lakos-Bujas conceded that a recession seemed off the table but said that AI investments were unlikely to pay off with lingering questions around monetization issues.
Only about one-fourth of the S&P 500 is up 24% or more in 2024 (24% being the index’s gain this year). The new proposal would give the U.S. government veto power over any reduction in U.S. Steel’s “production capacity” as part of allowing a Japanese firm to take a strategically important company, the report said. Developments in Washington, D.C., helped fuel the rally in the second half of the year. The Federal Reserve has cut its benchmark interest rate by a full percentage point since September, bolstering confidence that the U.S. economy can sustain its recent growth.
“The spread between Mag-7 and S&P 500 ex Mag-7 earnings growth has reduced to the smallest in the last 7 quarters.” The influence of the “Magnificent Seven” on earnings growth among U.S.-based companies is dwindling by the quarter, according to JPMorgan. The S&P 500 was little changed on Friday in a pause from a strong performance this week, as investors weighed the latest on the global trade and inflation fronts. Finally, stock market valuations above historical levels are an ongoing concern, Charlie Ashley, portfolio manager at Catalyst Funds, said.
The stock market’s benchmark index is poised for a decade of tepid returns, Goldman Sachs predicted this month. Fresh inflation data and comments from top Fed officials lead this week’s schedule of economic updates. JPMorgan strategists have held firm to their bearish S&P 500 year-end price target of 4,200, which represents a potential downside of 28% from current levels. UBS’s head of US equities David Lefkowitz said “healthy” earnings growth would pave the way power trend for further stock gains.
Nucor’s short interest rose by $61 million over the past 30 days while Carpenter’s added $49 million. S3 says “the largest shorts in the worldwide Metals & Mining industry are dominated by steel stocks.” In addition to “calmed nerves” around Musk’s task force called the Department of Government Efficiency, he said the report showed a strong data center pipeline and growth either in line with or ahead of expectations. Some of the bricks the make up the wall of worry right now include the potential for a trade war following the Trump administration’s tariffs, an ever-growing government spending deficit, and uncertainty around the longevity of the AI tech trade. “Unfortunately, sometimes Mr. Market can lose his footing on the way up,” Steve Sosnick, chief strategist at Interactive Brokers, told Business Insider. “Investors should consider allocating to other indices where we view the current landscape as favorable for strong forward performance,” strategists said, highlighting in particular the equal-weight S&P 500 and the https://www.forex-world.net/ mid-cap S&P 400 index.
Japan’s benchmark Nikkei 225 ended the day 0.79% lower at 39,149.43, while the broader Topix index lost 0.23% to close at 2,759.21. The S&P 500 opened just above flat shortly after market open, while the Dow Jones Industrial Average traded 0.1% lower. When the S&P 500 is 3% or higher on Feb. 14, the index has historically continued to rise for the rest of the year 93.8% of the time, with an average gain of 13.7% since 1950, the firm said. Dell shares were up more than 3% after Bloomberg News reported, citing people familiar with the matter, that the chipmaker was nearing a deal to sell servers with Nvidia chips to Elon Musk’s xAI. That being said, investors usually tend to “swipe left” on the market after Valentine’s Day.
If they are higher, they pull down economic growth (via higher borrowing costs) and equity valuations,” Jason Ware, chief investment officer of Albion Financial Group in Salt Lake City, told me. Best forex indicator In such an environment, the competition for dollars is tight when allocating assets.That’s because higher yields are stronger competitors against stock volatility and risks, he added. “In a nutshell, those are the key reasons why interest rates and, thus, Fed policy matter,” said Ware.
Intel’s misfortunes also resulted in the ousting of CEO Pat Gelsinger earlier this month. The broad market index closed 0.43% lower at 5,881.63, while the Nasdaq Composite dipped 0.9% to 19,310.79 on 2024’s final day of trading. The Dow Jones Industrial Average slipped just 0.07%, or 29.51 points, lower to 42,544.22. Nearly three out of five investors, or 57.4%, believe tariffs will slow the economy and raise prices, according to a special question asked by AAII. About a fifth, or 20.4%, think they’ll have “a temporary impact but not a lasting one,” while 12.5% said tariffs “will eventually lead to a stronger domestic economy.” About 10% saw no to limited effect, or had no opinion. On Thursday, Trump talked about a potential meeting with Russia and China in the future in which all three would agree to slash military spending.
Inflation data and Federal Reserve Chair Jerome Powell’s comments will be watched this week as investors also prepare for another slate of corporate earnings reports. While the strategist acknowledged a “mania” could take hold in the market and push stock prices even higher from here, he said it would ultimately end with a crescendo and then a fresh swing to the downside. Finally, JPMorgan warned in a note Monday that third-quarter earnings had seen a flurry of estimate downgrades as sell-side analysts lowered their expectations. But the outlook for the stock market is less clear, with major Wall Street banks still divided on whether stock prices have further room to run. The Wedbush Securities analyst and tech bull Dan Ives described this week as the “world series for big tech.” He predicted that earnings results would come in strong and send tech stocks higher into the end of the year. Except for Apple, the tech giants reporting this week are among Nvidia’s biggest customers.
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