US Stock Market Review 8 – 12 July 2024 $Dow Jones Industrial Average(.DJI.US)$+1.59% $S&P 500 Index(.SPX.US)$0.87% $NASDAQ(NASDAQ.US)$+0.25% Analysist bets that the US Federal Reserve (Fed) will cut interest rates in September as the price index (CPI) was reported lower than the expectation Event to watch: 16 July US retail sale US core retail sales, 17 July US Crude oil inventory, 18 July US Philadelphia Fed Man...
Investors are increasingly concerned about “overinvestment” in AI, with revenue downgrades in the second quarter potentially hitting valuations hard. Goldman Sachs estimates that achieving returns similar to historical levels would require hyperscale cloud providers to generate approximately $335 billion in revenue by 2025, with earnings needing to grow by 16% year-over-year. Without this growth, valuations could face downward pressure. $Alphabet-A(GOOGL.US)$$Meta Platforms(META.US)$$Microsoft(MSFT.US)$$S&P 500 Index(.SPX.US)$
Tech, Media, and Telecom (TMT) stocks have been sold off for four consecutive weeks, with tech stocks being underweighted to record levels. Last week saw significant fund flows from "smart money," with seven sectors in the S&P experiencing net selling, focusing on information technology, communication services, industrials, and consumer staples. Meanwhile, cyclical stocks like consumer discretionary, energy, utilities, and real estate saw net buying. Th...
Goldman Sachs argues that the Fed will soon begin cutting rates. The market almost fully expects a rate cut in September, which remains Goldman’s base case, but they believe there is sufficient reason for a cut as early as the July meeting. Goldman presents three main reasons for this: Firstly, if the reason for cutting rates is clear, why wait seven weeks to implement it? Secondly, monthly inflation fluctuations can be signi...
Investors bet that the unsuccessful assassination attempt on former President Donald Trump would be a tailwind for the Republican presidential candidate and his party in November’s election. A victory for the GOP at the polls could pave the way for favorable tax and fiscal policies for investors. The market also continued its rotation into small-cap stocks, with the$Russell 2000 Index(.RUT.US)$rising 1.8% during Monday’s session. Tom Lee, the head of research at Fundstrat Global Advisors, think...
Powell reiterated that recent inflation data was “quite good,” suggesting there’s no need to wait until it drops to 2% to cut rates. The “Fed whisperer” commented that Powell’s latest remarks imply rate cuts are imminent, although he did not reveal specific timing, which does not alter market expectations for a pause at the July meeting. Some analysts believe a rate cut in September is most likely. Powell also noted that if the labor market weakens unexpectedly, it ...
Record high The Dow Jones Industrial Average closed at an all-time high after former President Donald Trump survived an assassination attempt. The S&P 500 hit an intraday high and Nasdaq Composite rose 0.4%. The prospect of Trump’s reelection is seen as a positive for small caps, the Russell 2000 gained 1.8%, touching its highest level since 2022 and recording a fourth straight positive day. The yield on the 10-year Treasury edged up as investors analyzed comments f...
$Dow Jones Industrial Average(.DJI.US)$+1.59%
$S&P 500 Index(.SPX.US)$ 0.87%
$NASDAQ(NASDAQ.US)$ +0.25%
Analysist bets that the US Federal Reserve (Fed) will cut interest rates in September as the price index (CPI) was reported lower than the expectation
Event to watch: 16 July US retail sale US core retail sales, 17 July US Crude oil inventory, 18 July US Philadelphia Fed Man...
Firstly, post-pandemic inflation seasonal factors may exaggerate the slowdown in core inflation.
Secondly, oil, cars, and housing—three main factors slowing inflation—do not reflect weakened demand.
Thirdly, the labor market remains robust, and unfavorable inflation factors will increase monthly.
$S&P 500 Index(.SPX.US)$ $Nasdaq Composite Index(.IXIC.US)$ $Dow Jones Industrial Average(.DJI.US)$ $ProShares UltraPro Short QQQ ETF(SQQQ.US)$ $ProShares UltraPro QQQ ETF(TQQQ.US)$
$Alphabet-A(GOOGL.US)$ $Meta Platforms(META.US)$ $Microsoft(MSFT.US)$ $S&P 500 Index(.SPX.US)$
Th...
$S&P 500 Index(.SPX.US)$ $CBOE Volatility S&P 500 Index(.VIX.US)$ $Nasdaq Composite Index(.IXIC.US)$ $Dow Jones Industrial Average(.DJI.US)$ $ProShares UltraPro Short QQQ ETF(SQQQ.US)$ $ProShares UltraPro QQQ ETF(TQQQ.US)$
The market also continued its rotation into small-cap stocks, with the $Russell 2000 Index(.RUT.US)$ rising 1.8% during Monday’s session. Tom Lee, the head of research at Fundstrat Global Advisors, think...
The Dow Jones Industrial Average closed at an all-time high after former President Donald Trump survived an assassination attempt.
The S&P 500 hit an intraday high and Nasdaq Composite rose 0.4%.
The prospect of Trump’s reelection is seen as a positive for small caps, the Russell 2000 gained 1.8%, touching its highest level since 2022 and recording a fourth straight positive day.
The yield on the 10-year Treasury edged up as investors analyzed comments f...
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