Outlook for the US market: Costin of GS predicts that the S&P 500 will reach 6,500 by the end of 2025, while the Dow Jones starts off 146 points lower.
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Tonight's analysis of NY stocks.![]()
Market Overview
The U.S. market has started with the Dow Industrial Average, which consists of high-quality stocks, down $146.33 at $43,243.27, and the technology-heavy NASDAQ Composite Index down 92.10 points at 18,699.71. The S&P 500, which consists of 500 of the largest U.S. stocks, opened down 23.57 points at 5,870.05.
The U.S. market has started with the Dow Industrial Average, which consists of high-quality stocks, down $146.33 at $43,243.27, and the technology-heavy NASDAQ Composite Index down 92.10 points at 18,699.71. The S&P 500, which consists of 500 of the largest U.S. stocks, opened down 23.57 points at 5,870.05.
Top News
Outlook for tonight
The transition team of the next Trump administration is considering appointing former FRB director Kevin Warsh as Treasury Secretary and hedge fund manager Scott Bessent as the Director of the White House National Economic Council (NEC). This is solidifying the framework of the economic policy team for the next administration.
The US Department of Justice has asked the court to order Google to sell Chrome browser. This measure could become a historic application of antitrust law and fundamentally alter the structure of the online search market and AI industry.
Outlook for tonight
The transition team of the next Trump administration is considering appointing former FRB director Kevin Warsh as Treasury Secretary and hedge fund manager Scott Bessent as the Director of the White House National Economic Council (NEC). This is solidifying the framework of the economic policy team for the next administration.
The US Department of Justice has asked the court to order Google to sell Chrome browser. This measure could become a historic application of antitrust law and fundamentally alter the structure of the online search market and AI industry.
Bitcoin has surpassed $91,000, drawing attention back to the cryptocurrency market. NASDAQ is planning to start options trading for the iShares Bitcoin Trust, and Trump Media is reportedly negotiating the acquisition of Bakkt Holdings to operate in the digital asset market.
According to reports, Ukraine has launched its first attack on the Russian border using Western-supplied missiles. Meanwhile, President Putin has signed a presidential decree allowing the use of nuclear weapons in retaliation for a large-scale conventional weapons attack. Due to this escalating conflict, the stock market declined while the bond market rose. Germany's 10-year bond yields have dropped to the lowest level since October and European gas prices have risen for the fourth consecutive day.
Goldman Sachs' 2025 Outlook: Pursuing alpha under high valuations
● $Goldman Sachs (GS.US)$ Predicting a 11% increase in the S&P 500 by 2025, it is believed that there is still room for growth in the global stock market. However, considering the current high valuation, investors are required to pursue 'alpha' beyond market averages.
● $Goldman Sachs (GS.US)$ Predicting a 11% increase in the S&P 500 by 2025, it is believed that there is still room for growth in the global stock market. However, considering the current high valuation, investors are required to pursue 'alpha' beyond market averages.
The company points out the importance of focusing on individual stock selection and geographical diversification in a highly concentrated market. In particular, it suggests seeking companies with strong profit growth potential.
Specific investment themes include pursuing global alpha, discovering value within high growth forecasts, risk diversification, and focusing on M&A opportunities centered around the USA and European markets.
Specific investment themes include pursuing global alpha, discovering value within high growth forecasts, risk diversification, and focusing on M&A opportunities centered around the USA and European markets.
Is recovery possible from the stagnation of the European economy
Compared to the USA, Europe has lower attractiveness as an investment destination, plagued by stagnant markets, declining currencies, and political crises.
While the tax reforms and regulatory easing policies of the Trump administration have made US stocks more attractive, Europe faces risks of new tariffs and outflows. European stocks have fallen, the Euro has weakened, and the growing disparity between the US and European markets is becoming more evident.
Currently, the market capitalization of US stocks is four times that of Europe, with no public companies in Europe exceeding $500 billion in market capitalization, while the US has 8 companies with over $1 trillion in market capitalization. Some analysts point out that the policies of the Trump administration may promote an improvement in the market environment in Europe. There is also the possibility of mitigating the impact by taking countermeasures.
Compared to the USA, Europe has lower attractiveness as an investment destination, plagued by stagnant markets, declining currencies, and political crises.
While the tax reforms and regulatory easing policies of the Trump administration have made US stocks more attractive, Europe faces risks of new tariffs and outflows. European stocks have fallen, the Euro has weakened, and the growing disparity between the US and European markets is becoming more evident.
Currently, the market capitalization of US stocks is four times that of Europe, with no public companies in Europe exceeding $500 billion in market capitalization, while the US has 8 companies with over $1 trillion in market capitalization. Some analysts point out that the policies of the Trump administration may promote an improvement in the market environment in Europe. There is also the possibility of mitigating the impact by taking countermeasures.
SMCI Surges in After-Hours Trading
● $Super Micro Computer (SMCI.US)$ The stock price surged temporarily by 30% in after-hours trading. The company has appointed a new auditor and submitted a plan to comply with Nasdaq's listing standards.
● The company's stock price had been plummeting until now. This was due to the previous auditor resigning due to concerns regarding transparency and governance. In August, short seller Hindenburg Research expressed doubts about Super Micro's accounting. The company has denied these allegations.
Related articles:Super Micro soared 30% after hours, submitting compliance plans to nasdaq.
● $Super Micro Computer (SMCI.US)$ The stock price surged temporarily by 30% in after-hours trading. The company has appointed a new auditor and submitted a plan to comply with Nasdaq's listing standards.
● The company's stock price had been plummeting until now. This was due to the previous auditor resigning due to concerns regarding transparency and governance. In August, short seller Hindenburg Research expressed doubts about Super Micro's accounting. The company has denied these allegations.
Related articles:Super Micro soared 30% after hours, submitting compliance plans to nasdaq.
Speculation on the appointment of the Finance Minister
●Traders are keeping an eye on the nomination of the Finance Minister by the upcoming Trump administration, with the latest reports suggesting that Kevin Warsh, a Fed Board member, is a potential candidate and may have an impact on the market.
●Mr. Walsh played an important role in the FRB's rescue measures during the financial crisis, but he has criticized the FRB for being too accommodative in monetary policy for an extended period. He has also shown a skeptical view towards excessive market intervention. On the other hand, his stance on trade policy is considered less protectionist than Mr. Trump's.
●According to Mr. Jim Reid of Deutsche Bank, this combination of policy stances may have been a significant factor in the temporary rise in US bonds on Monday.
●As a related topic, there is a possibility that major overseas investors are expressing concerns about the re-election of the Trump administration. According to data from the US Treasury Department, it has been revealed that investors from Japan and China have been selling US bonds in the third quarter.
●Traders are keeping an eye on the nomination of the Finance Minister by the upcoming Trump administration, with the latest reports suggesting that Kevin Warsh, a Fed Board member, is a potential candidate and may have an impact on the market.
●Mr. Walsh played an important role in the FRB's rescue measures during the financial crisis, but he has criticized the FRB for being too accommodative in monetary policy for an extended period. He has also shown a skeptical view towards excessive market intervention. On the other hand, his stance on trade policy is considered less protectionist than Mr. Trump's.
●According to Mr. Jim Reid of Deutsche Bank, this combination of policy stances may have been a significant factor in the temporary rise in US bonds on Monday.
●As a related topic, there is a possibility that major overseas investors are expressing concerns about the re-election of the Trump administration. According to data from the US Treasury Department, it has been revealed that investors from Japan and China have been selling US bonds in the third quarter.
moomoo News Zeber
Source: moomoo, Bloomberg
This article utilizes auto-translation in some parts.
Source: moomoo, Bloomberg
This article utilizes auto-translation in some parts.
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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