Ahead of the opening bell, the Bureau of Labor Statistics said the U.S. added 143,000 jobs in January – less than the 169,000 economists expected. Still, payroll figures for both November and December were upwardly revised and the unemployment rate ticked lower to 4.0% from 4.1%. Futures tied to the Dow Jones Industrial Average dipped 40 points, while S&P 500 futures ticked down 0.2%.
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It’s called the December Low indicator, and it occurs when the S&P 500 closes below the December low close in the first quarter. China’s property sector has been mired in a crisis since the default of Evergrande Group in 2021, and the country is dealing with an enormous amount of distressed debt, much of it tied to its real estate market. While the 10-year US Treasury yield has softened this year and plus500 review dipped back below 4.50%, a swift rise toward 5% could trigger a stock sell-off. As for what might trigger “something more significant,” a sudden spike in bond yields is a likely candidate. Two factors that point to a robust economy are healthy employment and consumer confidence.
- The move in rates, due in part to changing expectations around Federal Reserve rate cuts, could be hurting optimism for stocks.
- Strategists at UBS increased their S&P 500 price targets in a note last week, expecting the S&P 500 to hit 6,300 by June 2025 and 6,600 at the end of next year.
- “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.
- While no details were given, Trump said that these are necessary to ensure “that we’re treated evenly with other countries,” according to Reuters.
- 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.
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Markets see an 82% chance that the central bank will trim interest rates another quarter-point next month, up from 59% on Tuesday, according to the CME FedWatch tool. Pinterest (PINS) stock surged 19.1% after the visual search and discovery platform reported revenue above $1 billion for the first time ever in its fourth quarter. Adams adds that the report will do little to change the Fed’s plans to hold interest rates steady in the near term and the market seems to agree. According to CME Group’s FedWatch tool, futures traders are now pricing in a 92% chance the central bank will not cut rates at its next meeting in March, up from 84% one day ago. Stocks opened higher Friday following the January jobs report but swung lower after the latest consumer sentiment data showed inflation worries are rising. President Donald Trump’s promises for retaliatory tariffs only elevated investors’ anxiety.
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“The primary driver of the upward revision to our 2025 EPS estimate is greater margin expansion,” Kostin said. “The macro backdrop remains conducive to modest margin expansion, with prices charged outpacing input cost growth.” Crypto markets, though, continued to get a boost after Elon Musk, a close ally of Trump, was appointed as co-head of the Department of Government Efficiency, or “DOGE.” President Trump’s announcement that he will unveil retaliatory tariffs on several trading partners next week likely did little to ease these worries.
- Steel recently stood at $805 million and accounted for 9.2% of the company’s freely floating shares.
- After a blockbuster September jobs report, the stakes are high for October’s jobs data on Friday.
- The small cap-focused Russell 2000 has added 10.2% this year, as of midday Tuesday.
- Investors will be looking for signs of AI growth — and with it, signals that the tech bull run will continue into 2025.
- Here’s another sign that the S&P 500’s gains have been very top-heavy this year, primarily thanks to the tremendous outperformance from big cap techs.
- In her previous role, Karee focused primarily on options trading, as well as technical, fundamental and sentiment analysis.
On the one hand, most see the gains set to continue, pushing past election uncertainty and continuing to lift stocks into 2025. Beyond that timeline, however, uncertainty builds and outlooks get murky. The Atlanta Fed’s GDPNow tracker on Friday showed an expectation of 3.3% economic growth for the quarter. The iPhone maker reports on Thursday and is expected to unveil software and hardware updates this week, including access to highly anticipated Apple Intelligence features with the iOS 18.1 update. The odds of another 25 basis point cut at the Fed’s January meeting have dropped to 29%, down from 69% a month ago. Inflation was slightly higher year-over-year in October compared to the https://www.forex-reviews.org/ prior month, but was on par with economists’ expectations.
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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.
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“We continue to be surprised by the strength of market gains and decided yet again that something more than an incremental adjustment was warranted,” Belski said in the note. Belski increased his year-end S&P 500 price target to 6,100 from 5,600 last month, making him one of the most bullish strategists on Wall Street. Strategists at UBS increased their S&P 500 price targets in a note last week, expecting the S&P 500 to hit 6,300 by June 2025 and 6,600 at the end of next year.
Kraft Heinz (KHC) shares slid after the packaged food maker’s 2025 profit outlook fell short. But CVS Health (CVS) stock got a boost as investors welcomed a smaller drop in quarterly profit Divergencias than expected. The Consumer Price Index (CPI) out Wednesday showed headline consumer inflation rose more than forecast in January. “Core” prices — which strip out the more volatile costs of food and gas — reversed the previous month’s easing, up 0.4% over last month and 3.3% over last year, with both rates higher than in December.
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.
Consumer prices rose 0.2% for the month and 2.6% on an annual basis, higher than last month’s 2.4% increase. Get the latest updates on pre-market movers, S&P 500, Nasdaq Composite and Dow Jones Industrial Average futures. Having fallen three straight sessions entering the final day of trading, the S&P 500 is trying to avoid its first four-day losing streak to close out a year since 1966. Nvidia is on pace for a 173% gain as artificial intelligence tailwinds show no signs of dwindling, while shares of Broadcom and Axon Enterprise have more than doubled. Meanwhile, bitcoin has performed even better than the stock market, up 119% for the year.
As Nvidia’s earnings aren’t for another month, the third-quarter results and executive commentary will be gauges of demand from the so-called hyperscalers driving the bulk of GPU sales. Investors will be watching key data releases — including third-quarter GDP, an inflation update from the personal consumption expenditures index, and the October jobs report — for clues about the state of the economy heading into the end of the year. Elsewhere on the earnings calendar, Affirm Holdings (AFRM) stock soared 21.8% after the buy now, pay later company reported a surprise fourth-quarter profit and revenue beat.
The benchmark index is on track to hit 6,300 over the next 12 months, the strategists predicted, implying another 8% upside from current levels. “We took a clean sheet look at the equity market and came away with the same smh (shaking my head) emoji reaction. Despite all the soft-landing and Fed rate cut optimism, the S&P 500 up almost 40% y/y has simply over-shot,” Bannister said. Strength begets more strength, and that’s a big part of the BMO strategist Brian Belski’s bullish outlook for stocks into 2025. Here’s what Wall Street is saying about the prospects for the stock market heading into 2025 and beyond. Stocks are trading near record highs, with the S&P 500 on track to deliver back-to-back annual gains of more than 20%. Inflation is falling, productivity is rising, and the Federal Reserve is easing monetary policy, which should act as a tailwind for economic growth.
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