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.
Investors are unsure if the correction in the US stock market is over, as the possibility of a head-and-shoulders top on the S&P 500 is being discussed, although it is still uncertain if the consolidation will continue higher or lead to a downward trend.
Summary: Despite a dismal August for the stock market, the S&P 500 narrowly avoided a particular negative outcome, setting up for the next test.
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 ended lower and the Nasdaq higher as U.S. inflation data met expectations, signaling a potential pause in monetary tightening by the Federal Reserve, while Salesforce shares climbed following a positive revenue forecast.
Stocks fell in morning trading on Wall Street, with the S&P 500 down 0.7%, as big technology stocks and healthcare stocks experienced losses, while several companies made significant moves after reporting earnings and other updates.
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.
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.
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.
Wall Street finished the week with a decline in stocks, as the S&P 500 posted its second consecutive losing week, with technology and retail sectors contributing to the slide, while investors await the upcoming Federal Reserve interest rate policy meeting.
Stock-market strategists are raising their year-end targets for the S&P 500 Index after being largely wrong about this year's rally, but they still expect a market downturn in 2024 despite signs of a strong economy and improving profit outlook.
The S&P 500 showed multiple warning signs of a coming selloff, with indicators suggesting a potential downtrend and volatility in the stock market, prompting caution for investors and the need to closely monitor next week's market action and earnings report season.
The S&P 500 typically experiences a decline before US government shutdowns, but tends to rebound and gain in the following months; however, the current shutdown may add to short-term market volatility amidst already challenging economic conditions.
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.
Wall Street's forecasts of corporate earnings are expected to decrease, which will likely impact the stock market.
Wall Street turned lower as concerns over interest rates, rising oil prices, and a possible government shutdown weighed on the market, with the Dow Jones and S&P 500 both experiencing losses.
Investors are concerned about a potential showdown for the S&P 500 as stock market commentator, Heisenberg, shares a chart indicating bearish patterns and a major trend line off the October lows, suggesting a sharp drop in the index. Rising bond yields, climbing oil prices, and fears of slowing consumer spending are also factors contributing to investor unease.
The S&P 500 fell as investors reacted to an inflation report and adjusted their portfolios on the last day of a weak third quarter for stocks, with the benchmark index also on track to post its biggest monthly percentage drop of the year.
The S&P 500 closed out the quarter with a 3.6% loss, attributed to factors such as rising interest rates, a slowing housing market, and businesses preparing for tough times, resulting in a slow decline in stocks. Additionally, the resumption of student loan payments and expectations of more rate hikes from the Federal Reserve are expected to impact consumer spending power and business cutbacks. However, as the year comes to an end, traders and investors may look forward to 2024 for possible rate cuts and a return of strength in the market.
Wall Street's major averages ended slightly lower as investors awaited the non-farm payrolls report and grappled with mixed economic data, while the tech-heavy Nasdaq Composite and benchmark S&P 500 both pared back losses, and defensive sectors outperformed.
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 S&P 500 experienced a 7.83% drawdown, but current volatility expectations are lower than past periods of similar declines, suggesting that the market is experiencing a normal correction rather than a bear-market-like drawdown.
The upcoming earnings season is expected to bring higher-than-expected earnings for companies, but this is not anticipated to lead to a significant rise in the stock market.
Investors are cautious ahead of the third-quarter earnings season, as a decline is expected for the fourth consecutive quarter, with a 0.4% year-over-year decline predicted for S&P 500 companies, which could negatively impact stock prices if expectations are not met.
Nokia's stock saw a decrease, not keeping up with the S&P 500, and the company is set to reveal its earnings performance on October 19, 2023.
Stocks rose last week, with the S&P 500 increasing 0.4%, and analysts expect S&P 500 companies to report a second consecutive quarter of earnings growth; however, the expectation that profit margins will expand again remains controversial.
The third-quarter reporting season is expected to bring positive earnings growth for the S&P 500 index, with companies beating expectations, but guidance for the future and profit margins will be crucial in supporting valuations amid rising interest rates and inflationary pressures.
Despite ongoing macro headwinds, S&P 500 companies are beating earning expectations and signals suggest that corporate America's earnings recession may be over, however, the macro picture and uncertainties still create choppiness and challenges for companies.
Stocks slide as retail sales exceed expectations and bond yields rise, while key players in banking, pharma, defense, and airlines sectors report during earnings season.
Wall Street bear Michael Wilson maintains his prediction that the S&P 500 will end 2023 at 3,900, citing weak market breadth, waning consumer confidence, and tempered earnings growth expectations as reasons for a potential further drop in stocks.
The S&P 500's record-breaking performance, driven by a handful of technology stocks, is causing concern among economists due to their inflated valuations and the high levels of Treasury debt yields, suggesting an imminent correction in the market.
The S&P 500 is at a crucial moment as it is caught between key technical levels, and the next phase of the bull market hinges on a breakout; year-end seasonality is expected to be positive for the stock market.
