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 for further stock gains.

Hong Kong’s Hang Seng index traded up 3.48% in its final hour, extending its gains from the previous session. Asia-Pacific markets were mixed Friday after Wall Street rose overnight as President Donald Trump signed a reciprocal tariffs plan, but did not enact the levies immediately. The company’s fourth-quarter revenue of $966 million beat an LSEG estimate of $942.8 million. However, Moderna lost $2.91 per share during the period, marking a steeper loss than the $2.68 per share analysts had penciled in. In addition, Apple will integrate Alibaba’s AI into its iPhones in China, Alibaba Chair Joe Tsai confirmed Thursday.

Tariffs likely to spur short covering in U.S. steel stocks, S3 Partners says

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  • Wall Street might not close 2024 exactly at record highs, but there have been plenty of milestones throughout the year.
  • Michelle Lodge is a journalist who has written extensively about finance, personal finance, topics of critical importance to business owners, iconic and everyday Americans, book reviewing, travel and health.
  • That’s the highest multiplier seen in about 100 years, a sign the benchmark index is highly concentrated.
  • A large chunk of the decline came Thursday after the company posted slightly weaker-than-expected revenue for the fourth quarter.
  • Budget concerns could send yields soaring if the Trump administration follows through with more tax cuts that aren’t balanced out by cuts to spending.

Sentiment appeared to calm after January’s producer price index report, released Thursday, as well as the consumer price index report released Wednesday, suggested a softer reading for the personal consumption expenditures price index. The PCE price index, which is due later this month, is the Federal Reserve’s preferred inflation gauge. For Ryan Detrick, chief market strategist at Carson Group, stocks could be due for weakness after a technical sell signal flashed in January.

Contribution of ‘Magnificent 7’ to earnings growth is ‘diminishing,’ JPMorgan says

According to FactSet, 75% of the companies that have reported earnings have beat earnings estimates, on par with the 10-year average. “This is a trend we expect to continue and should help to support future market gains even if the price and fundamental performance of Mag-X stocks continues to decelerate in the months ahead,” Belski said. He’s also encouraged by the broadening out of the stock market rally, as it’s no longer concentrated in a handful of tech giants. That’s healthy behavior for sustainable stock market gains, according to the note. Investors solidified bets on another rate cut at the Federal Reserve’s December policy meeting.

Among the top analysts at Wall Street banks, there’s some disagreement about whether all of the good news is priced in already or whether the market can continue to rise beyond already lofty valuations. Personal consumption expenditures, due Thursday, will be another input for the Fed as it nears its goal of 2% inflation. The Fed’s preferred inflation gauge is expected to show that prices rose by 2.1% year over year in September after coming in at 2.2% in August. Dogecoin spiked another 15% on the news, while bitcoin rose as much as 6% before paring its gains, surpassing the $90,000 https://www.forex-reviews.org/ threshold for the first time ever before dipping back below to about $88,000 later in the day.

Stocks making the biggest moves midday Friday

  • MongoDB and Biogen have slumped at least 40%, while Dexcom and Microchip Technology have shed at least 36% each.
  • Steel jumped 7% after the Washington Post reported that Nippon Steel sent the Biden administration an updated acquisition proposal.
  • Investment trading app Robinhood’s expected earnings come after Morgan Stanley upgraded its rating and raised the stock’s price target in November.
  • Investors are also watching the expected Thursday report from crypto exchange Coinbase.
  • For Ryan Detrick, chief market strategist at Carson Group, stocks could be due for weakness after a technical sell signal flashed in January.
  • New York Fed President John Williams and Atlanta Fed President Raphael Bostic are also scheduled to speak during the week.
  • The stock market’s benchmark index is poised for a decade of tepid returns, Goldman Sachs predicted this month.

The bank said improving inflation, more Fed rate cuts, and accelerating investment in artificial intelligence should all help support the stock market next year. Drugmakers Moderna (MRNA) and Vertex Pharmaceuticals (VRTX) are scheduled to report during the week, while investment app Robinhood (HOOD) and cryptocurrency exchange Coinbase (COIN) are also on the corporate earnings calendar. Stocks closed lower on Tuesday as investors wrapped up another booming year that hoisted the S&P 500 to its second consecutive annual gain exceeding 20%, spurred by enthusiasm for rate cuts, economic strength and artificial intelligence. Another area he pegged for growth are small- and mid-cap companies—and that’s an area that others are touting as ripe for solid investment. “While capital expenditure slowed in 2024, deregulation and increased business activity could encourage expansion and investment,” said Helfstein. With wars waging, countries are building up arms and that’s good news for new defense technologies, added Helfstein.

Moderna falls on disappointing earnings

Berkshire first bought the tech stock in 2013 and hasn’t adjusted the stake in years. Verisign has had a mediocre year with its stock flat in 2024, significantly underperforming the tech sector. Through Monday’s close, there have been 57 record closes for the S&P in 2024, 47 for the Dow and 38 for the Nasdaq Composite. Wall Street might not close 2024 exactly at record highs, but there have been plenty of milestones throughout the year.

In her previous role, Karee focused primarily on options trading, as well as technical, fundamental and sentiment analysis. Ahead of another busy week that includes several blue chip earnings and the next Consumer Price Index (CPI) report, investors may want to keep an eye on the outcome of Sunday’s big game to determine the longer-term direction of the market. The ICE U.S. Dollar Index enters the final day of December up 6.61% in 2024, which will mark the greenback’s third positive year in four. All of those gains have come in the fourth quarter, when the index is up 7.20%, which is on track to be the best quarterly performance since 2015.

Wall Street analysts aren’t buying Best forex trading platform President Donald Trump’s idea for a massive cut in defense spending. Steel recently stood at $805 million and accounted for 9.2% of the company’s freely floating shares. Nucor was $754 million or 2.3% of the float and Carpenter Technology was $500 million or 5.7% of its float, S3 data showed.

If the economy stays hot, the Fed could slow or even pause its easing cycle and spark a recalibration in markets that causes fresh tickmill review volatility for stocks. “And for a lot of the time you had a 10-year Treasury yield that was very well behaved, along with earnings growth. So you got everything together at once that was going well.” Elevated valuations, unfounded expectations for more Fed rate cuts, and hype for AI that ultimately falls short of expectations could create a perfect storm for lower stock prices next year. A hot economy is a hurdle to aggressive rate cuts from the Fed and could cause markets to reprice expectations for interest rates through the rest of this year and into 2025.

Stocks also rallied sharply following President-elect Donald Trump’s win in November, as traders cheered the prospect of lower taxes and a looser regulatory approach under a Republican administration. Moderna shares dropped more than 4% after the vaccine maker reported mixed quarterly results. One analyst who did not completely dismiss Trump’s comments was Goldman’s Noah Poponak, though even he is projecting only modest budget cuts over the medium term. “The full year returns were plain and simple much weaker,” Detrick said in a recent note, highlighting an average full-year return of -0.2% and a win-ratio of 48.6%. Even with the S&P 500 trading near record highs, there’s always something for investors to worry about. Others, including many types of financial services professionals, have favorites.