US stocks firm after a nightmare week
2024-09-10
Summary:
US stocks rebounded Monday following the S&P 500's worst week of 2023, with investors focusing on inflation and its influence on potential rate cuts.
US stocks rebounded on Monday on the heels of the S&P 500's worst week since early 2023, as inflation came back into focus for investors gauging pressures that could influence the size of rate cuts.
All three major stock indexes surged more than 1%, with the S&P 500 and the Dow ending a four-session losing streak. The first debate between Trump and Harris later in the day will be closely watched.
Nvidia shed roughly $400 billion in market value last week after the stock fell nearly 10% on Tuesday. But Goldman Sachs maintained a Buy rating on the stock, saying the sell-off in was overdone.
The bank estimates that generative AI will begin materially contributing to sector growth by the second half of 2025, though investors’ patience is wearing thin amid elevated valuations.
Goldman also said, to get big tech stocks powering higher again, it will take the convergence of two factors – loose financial conditions combined with a whopping earnings growth in excess of 20%.
Treasury Secretary Janet Yellen sought to reassure the public on Saturday that the economy remains strong, despite a string of weak job reports that have rattled investors and weighed on the stock market.
The Nasdaq 100 index has steadied around 18,600. The rally will unlikely last beyond 19,000 by the CPI data due tomorrow.
Disclaimer: This material is for general information purposes only and is not intended as (and should not be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by EBC or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.
Bullion unchanged after Trump tariff vow
Gold prices held steady after Trump’s tariff announcement, dropping over 3% the previous day as Israel neared a ceasefire.
2024-11-26
Aussie Dollar Firmed Despite China Concerns
The Australian dollar edged higher Monday as the RBA remained hawkish, noting China's stimulus may have only a "modest" impact on Australia this time.
2024-11-25
How Big Tech Will Drive Bullish Market Trends in 2025
US stocks hit new highs; bubbles are emerging, the S&P 500 price-to-earnings ratio has risen to 26 times, and internal share sales have surged.
2024-11-22
