After a strong surge in June and July, the S&P 500 index has experienced a significant decline in August, with tech stocks being hit particularly hard, as fears of rising interest rates and a slowdown in China weigh on the market.
The S&P 500 Index reached a high in July but has since experienced a pullback of -4.8% in the first three weeks of August, with further downside possible, although the market may be near a turning point.
The S&P 500 has fallen nearly 5% in August, and opinions on whether stocks will rebound are divided among Wall Street firms and market commentators, with some, like Goldman Sachs and Fundstrat, remaining optimistic while others, including Michael Burry and David Rosenberg, are bearish.
Canada's main stock index, the S&P/TSX Composite Index, is expected to rise 3.5% by year-end due to concerns over China's slowdown and higher borrowing costs, but it may experience a correction, according to a Reuters poll of portfolio managers and strategists.
The S&P 500 is showing signs of a new bull market, but some experts are cautious and want to wait until the index reaches its previous high, meanwhile, there are two stocks, Sea Limited and Upstart Holdings, that have the potential to more than double in value over the next 12 to 18 months based on analysts' price targets.
Bitcoin's momentum indicator, the relative strength index (RSI), is showing bullish signs for September, but a drop below $25,500 could impede its upward movement, according to Glassnode co-founders Jan Happel and Yann Allemann.
Stock futures are slightly higher as the S&P 500 comes off a winning week, with 3M, Jabil, XPeng, Alibaba, Nvidia, and more stocks moving the most today.
The S&P 500 and other major indices are showing bearish signals, with potential for a significant drop, while the dollar is expected to maintain its upward trajectory and strong economic data could lead to a breakout in interest rates. Additionally, Meta's stock is on a downward trend and the KBW NASDAQ BANK Index is at risk of further decline.
The end of a five-month win streak for the S&P 500 is not all bad news, as historical data suggests that after five months of gains, the S&P 500's forward performances six and 12 months later are on average up 82% and 93% of the time, respectively.
The S&P 500 could experience significant gains in the coming months following the end of the current rate hike cycle by the Federal Reserve, with historical data showing positive returns after previous cycles and strong economic indicators supporting this trend. Investors are advised to consider investing in an S&P 500 index fund or industry-leading stocks like Amazon.
The S&P 500 index has seen impressive gains this year, up over 17%, and could potentially reach 5,000 points by the end of 2023, according to expert Andrew Slimmon of Morgan Stanley. Despite a slight pullback in August, strong third-quarter earnings and investor interest in mega-cap tech stocks are expected to drive the market forward.
Despite economic challenges, the S&P 500 is expected to continue its strong growth, potentially increasing by as much as 11% as the summer season ends, driven by companies like Apple, Microsoft, Google, Amazon, Nvidia, Tesla, and Meta, according to Morgan Stanley analyst Andrew Slimmon.
The S&P 500 Index slipped 0.15% after a four-day winning streak, likely indicating a small further decline in prices over the next few sessions.
The top 25 stocks in the S&P 500 outperformed the index in the 35th week of 2023, with tech stocks leading the way, suggesting a return of bull markets and a decrease in recessionary fears; however, market health, the balance between developed and emerging markets, and investor behavior still need to be addressed. Additionally, market correlations have dropped since COVID, and on "down-market" days, correlations are 5% higher than on "up-market" days. Market correlations also decrease during upward economic cycles. Retail investors are showing a preference for dividend-driven investing and investing in AI stocks. The global subsidies race is impacting valuations in tech and leading to supply chain inefficiencies. As a result, there are opportunities for diversification and investment in a wide variety of equities and bonds.
The S&P 500 Index experienced its best week since June, while Bitcoin faced a marginal loss due to the delay of spot Bitcoin exchange-traded fund applications by the Securities and Exchange Commission, although analysts remain optimistic about future ETF approvals.
The S&P 500 index is unlikely to reach a record high by the end of 2023 due to factors such as earnings per share and financial conditions, according to Stifel's chief equity strategist.
John Hussman warns that stocks are overvalued and investors buying into the S&P 500 now are likely to experience abysmal returns for the next decade. He cites high valuations and poor investor sentiment as indications of a forthcoming steep sell-off, and predicts an annualized return of -4% over the next 12 years.
Summary: The Nasdaq and S&P 500 closed slightly higher on Friday after a week of losses, while the Dow Jones Industrial Average rose 0.2%; however, all three major indexes ended the week lower due to rising oil prices, stronger-than-expected labor market data, and China's iPhone ban.
Stocks are expected to open the week higher, with the S&P 500 up 0.5% in premarket trading, as investors look ahead to key U.S. economic data and show interest in companies such as Lennar, Arm, Tesla, and Oracle.
The stock market opened positively, with the Nasdaq up 0.6%, but later faded; major indexes are below their 50-day moving averages as investors await key economic data midweek.
Investors would have been better off buying the S&P 500 instead of adjusting their portfolios in response to Michael Burry's stock-market warning tweets, as the index had an average 6-month annualized gain of 34% following a selection of Burry's tweets from 2019 to 2023, according to Charlie Bilello, chief market strategist at Creative Planning.
Despite the pressure on the market, the major US equity indexes have held steady near their recent highs, with the S&P 500 up 16.21% year to date and the Nasdaq Composite up 31.6%, raising questions about whether the current market weakness is due to seasonality or potentially something more significant like inflation.
The major indexes, including the Dow Jones, S&P 500, and Nasdaq, finished lower on Friday ahead of the Federal Reserve meeting next week, with tech stocks dragging the Nasdaq lower and the S&P 500 and Nasdaq both falling below their 50-day moving average.
The S&P 500 and Nasdaq ended the week slightly lower due to a decline on Friday caused by higher bond yields and oil prices, while the Dow Jones Industrial Average saw a small weekly gain.
Bank of America predicts that the S&P 500 could surge over 25% within the next year based on a bullish indicator, with low long-term profit growth expectations among analysts signaling potential gains.
Despite a perceived undervaluation of the S&P 500, analysts warn of potential volatility in both the stock market and the Bitcoin market due to the upcoming Federal Open Market Committee (FOMC) meeting, which could shape narratives and challenge conventional wisdom. The S&P 500 appears oversold while Bitcoin consolidates with a potential target of $22,000.
The S&P 500 is expected to rise 13% by June 2024, according to a historical correlation between first-half returns and subsequent 12-month gains, indicating a potentially bullish outlook for the stock market.
The S&P 500 is up 12.5% in 2023, driven by megacaps including Nvidia, Meta Platforms, and Tesla, while several other top performers such as Royal Caribbean, Carnival Corp., and General Electric have recently sold off during the market correction and need some repair time.
The S&P 500's top seven stocks have surged more than 50% this year, while the rest of the index has only risen about 5%, highlighting a growing performance gap.
The recent pullback in the U.S. stock market could potentially lead to a test of the S&P 500 index's 200-day moving average, with a breakdown in the relationship between cyclical and defensive stocks being an early indication of a bearish trend change, according to analysts.
Technical analyst John Salama predicts that the S&P 500 will regain positive momentum and has identified five stocks that he believes can rise up to 50% by the end of October, including SkyWest, Tesla, Carvana, DraftKings, and IonQ.
The stock market's bull case depends on the S&P 500 breaking above a key level for continued gains.
The recent losses in the S&P 500 could be beneficial for the overall index, as market breadth and gains across companies are considered signs of a healthy stock market, according to Wall Street strategists. The outperformance of a select group of large-cap stocks known as the 'Magnificent Seven' is expected to give way to a cyclical trade led by the other 493 companies in the index.
The US stock market is experiencing a concerning situation with "bad breadth," as the S&P 500 equal-weighted index falls into correction territory and major equity indices give up all their gains for the year, raising risks of heavy reliance on a few megacap stocks.
Manish Kabra, head US equity and multiasset strategist at Société Générale, predicts that the S&P 500 will continue to be a "buy the dip" for the next six months due to improving profit growth and cyclical data, with a target range of 4,050 to 4,750, before a mild recession in 2024 potentially leads to a selloff in US stocks.
The S&P 500 Index rebounded following a selloff as dip buyers found an overreaction to the blowout US jobs report, driving gains and reversing losses.
The text provides definitions and risk considerations related to index investments, including the S&P 500 Index, emphasizing the importance of diversification and the potential volatility of certain sectors and asset classes.
Equity markets opened higher but gave back some gains midday before stabilizing, with the S&P 500 and Nasdaq Composite both gaining for the day, while narrower indexes like the KBW Bank Index and Philadelphia Semiconductor Index outperformed, and smaller caps outperformed large caps.
Stock-market experts predict the market will gain about 6.5 percent in the next year, with the S&P 500 index climbing to an average of 4,578, despite rising rates and growing economic uncertainty.
Stock indices finished mixed, with the Dow Jones gaining 0.12% while the S&P 500 and Nasdaq 100 fell 0.5% and 1.24% respectively; UBS analysts predict a "softish" landing for the US economy and have adjusted their S&P 500 price target down to 4,500 from 4,700, citing geopolitical and domestic financial developments.
The S&P 500 Index had a positive week, while gold saw a significant increase, but Bitcoin's performance was weak as it is on track to end the week down; market observers are keeping their focus on Bitcoin as its sustained price above $25,000 could lead to a bullish move and potential buying in select altcoins.
The S&P 500 Index is facing obstacles in maintaining a bullish trend, with a downtrend line and an unfilled gap on the chart, while resistance is observed at around 4380; however, there is still a McMillan Volatility Band buy signal in place, indicating some positive aspects.
The S&P 500 index fell below its 200-day moving average, signaling a bearish signal, but oversold conditions suggest a potential turnaround in the near future.
Major indexes rebounded in the afternoon on Friday, with the Dow Jones Industrial Average and the S&P 500 paring losses, while gold and bitcoin rose; however, the Nasdaq remained on track for a four-day losing streak, and the small-cap Russell 2000 hit a new low for the year.
The S&P 500 is experiencing a volatile and uncertain market, causing many investors to give up, but understanding the nature of the volatility and the current strength of the economy can help align portfolios for future gains, especially with GDP estimated to be at 3.5% - 5.4% for Q3 and PCE Inflation expected to drop to 3.1% moving closer to the Fed's 2% target.
Piper Sandler strategist Craig Johnson suggests that the S&P 500 is oversold and has room to rally by 14% this year, despite various headwinds such as high interest rates and geopolitical uncertainty.
The S&P 500 is at risk of a technical breakdown, but oversold extremes and potential rebound indicators suggest that a reversal in stock prices could be imminent, according to Fairlead Strategies' Katie Stockton.
