Equity investors are becoming increasingly defensive, with professional managers reducing their equity exposure to levels last seen during the 2022 bear market, and hedge funds increasing their single-stock shorts for the 11th consecutive week. The big question is whether this exodus is a precursor to a rebound or a prolonged period of pain.
Albemarle Corporation, a leading company in the specialty chemicals market, is expected to benefit from the growing demand for electric vehicles and lithium-based products despite recent concerns about lithium supply and declining margins, making it an attractive long-term investment.
Despite positive economic news, the stock market experienced a decline due to the realization that interest rates are likely to remain high, resulting in a decrease in stock valuations; however, the market is expected to rebound in the long term due to strong earnings growth and a solid economic foundation.
The "Magnificent Seven" megacap technology stocks, which have been driving the rally in the S&P 500, have lost over $1.2 trillion in market capitalization since July 31.
The "Magnificent Seven" mega-cap Big Tech stocks, including Apple, Microsoft, Alphabet, Amazon, Nvidia, Meta, and Tesla, have lost $1.2 trillion in market value since the end of July, attributed to investors' fears about the Fed's rate hikes and spiking bond yields.
Mortgage rates are nearing 8%, causing purchase activity to slow and affordability to remain a significant hurdle for potential homebuyers.
The price of Chainlink's (LINK) token surged by 61.3% in a recent period, outperforming other cryptocurrencies and prompting optimism among investors due to partnerships, integrations, and upcoming upgrades.
The cash parked by institutional investors at the Federal Reserve's overnight reverse repo facility has dropped to $1.1 trillion, signaling a decrease in liquidity as U.S. stocks stumble and the Treasury ramps up borrowing to fund the government's budget deficit.
Global shares were mixed, with technology giants outperforming, while benchmark Treasury yields and the dollar saw little change as U.S. inflation remained high but in line with forecasts.
The Nasdaq gains as tech stocks, including Amazon and Intel, report strong earnings; JPMorgan Chase shares fall after CEO Jamie Dimon plans to sell a portion of his holdings; stocks close out a tough week with the Dow down 262 points and the S&P 500 down 0.4%.
Despite companies surpassing third-quarter earnings expectations, the stock market is not responding positively.
The yield on the 10-year Treasury is now equivalent to the highest dividends paid by S&P 500 firms, leading to investors pulling cash from dividend stock funds at a faster pace than the overall stock market. The narrowing difference between dividend yields and the 10-year Treasury yield suggests that bonds are becoming a viable competitor to stocks.
Billionaire hedge fund boss Steve Cohen predicts a short-lived recession that he describes as a "fake scare" before the end of the year, but maintains a positive outlook for the US economy.
Americans' moods soured in October due to a decline in sentiment and increased pessimism about the economy's future, largely driven by the wobbly stock market and higher-income individuals with sizable stock holdings, according to the University of Michigan's latest consumer survey.
The ongoing conflict between Hamas and Israel has introduced a new layer of uncertainty for the global economy, which was already navigating economic and financial factors such as major growth engine strain, increased borrowing costs, recession and financial market turbulence risks, lack of top-down anchors, and inadequate response to long-term crises, including climate change and economic inequality.
Stock indices are mixed as consumer inflation expectations rise to 3% and consumer sentiment decreases, while the Nasdaq 100 and the S&P 500 are up and the Dow Jones is down.
U.S. PCE inflation slightly exceeded market expectations in September 2023, indicating that inflationary pressures are slowly moderating but still remain above the central bank target of 2%.
The S&P 500 could experience a significant rally of 18% by the end of the year, driven by the Federal Reserve potentially ending its rate hike cycle and a strong economy, according to Oppenheimer's chief investment strategist.
Drugmaker Sanofi's decision to abandon its 2025 profit target has caused a 15.5% drop in its stock and a $21 billion loss in market value. The company plans to focus on long-term profitability and increase spending on immunology and inflammation drug development.
The Dow Jones Industrial Average dropped due to key inflation data, while Amazon's stock surged on strong earnings results.
Intel's upbeat forecast and improvements in its PC-focused business have led to a 9% increase in stock and a positive outlook for the chip market, with the company securing new clients for its chip contract manufacturing business and a promising future in the foundry business, while still facing challenges in its AI and data center chip divisions.
Sanofi's stock value dropped by 20 billion euros after the drugmaker abandoned its 2025 profit target in order to focus on its core innovative drugs business and spin off its consumer healthcare unit.
Oil prices experienced volatility amid geopolitical tensions, with U.S. airstrikes in Syria causing a spike in prices, while ongoing economic concerns have resulted in a weekly loss.
A market strategist has warned that U.S. households are facing financial difficulties and may be on the brink of a crisis, despite strong retail sales, which could have negative implications for the U.S. economy.
The bond market is experiencing a significant resurgence with soaring yields, raising concerns about the impact on the economy, inflation, consumer loan rates, and trade flows. The Federal Reserve is closely monitoring the bond market, as higher yields can help quell inflation, but also increase costs and limit business activity. The bond market plays a critical role in financing government debt, and its power and influence cannot be ignored.
Investments in energy and defense sectors are expected to yield profits in the next 12-18 months due to potential oil shocks and escalating conflicts in the Middle East, according to BCA Research; safe haven investments like gold, US Treasury bonds, and currencies such as the Japanese yen and Swiss Franc are also recommended.
Intel's upbeat forecast and success in signing new chip contract manufacturing customers indicate a rebound in the personal computer market, leading to a more than 9% rise in its stock and a positive outlook for the company.
To stay competitive in today's job market, job seekers and working professionals should upskill themselves in both technical and non-technical skills through affordable and accessible online resources, while employers should prioritize upskilling critical skills and provide opportunities for employees to learn and apply new skills.
Many S&P 500 stocks, including SolarEdge Technologies, Enphase Energy, and Moderna, have experienced significant crashes of 50% or more from their 52-week highs, highlighting the market's struggles and the impact of inflation and interest rates on stocks.
The Core Personal Consumption Expenditures (PCE) Price Index, the US Federal Reserve's preferred inflation measure, is expected to rise 0.3% MoM and 3.7% YoY in September, while markets may overlook the PCE inflation data following the release of the GDP report.
Shares of Amazon climbed 5% in after-hours trading following impressive Q3 results, which along with news of booming U.S. growth and ebbing inflation, provided some relief to the markets after a torrid week; however, the S&P500 is set to record its third straight month of losses, driven by rising long-term borrowing costs.
The global rail transport market is expected to reach $677.78 billion by 2027, with a Compound Annual Growth Rate (CAGR) of 5.9%, driven by factors such as stable economic growth and technological advancements in the industry.
Billionaire Steve Cohen predicts a short-lived recession in the US economy this year, followed by a rebound in the first quarter of next year, while expressing confidence in the potential of artificial intelligence to enhance productivity at his hedge fund, Point72 Asset Management.
Amazon's strong third-quarter earnings have helped push Wall Street into a positive close for the week, while crude prices have gained on elevated tensions in the Middle East.
The Carillon Eagle Mid Cap Growth Fund's third quarter investor letter highlights negative returns for mid-cap stocks, with Albemarle Corporation facing underperformance due to declines in lithium spot market prices.
India's plan to introduce same-day settlement for equity market trades is facing opposition from offshore investors who worry about a fragmented system and increased trading costs.
The USD/JPY exchange rate has crossed the 150 mark, leading economists to analyze the pair's outlook and consider the possibility of intervention or JPY depreciation, but the effectiveness of intervention in preventing depreciation in the long term is uncertain.
Global hedge funds are increasingly setting up shop in India, attracted by its growing depth and liquidity, as well as its emergence as an alternative to investing in China, with India's stock market valuation doubling in just three years to $3.8 trillion in September.
Bond markets are experiencing a decrease in pressure, providing relief to other markets as investors take a breather from the recent surge in rates, while equities rebounded despite a Wall Street selloff.
China is experiencing a surge in venture capital fundraising, while India and Southeast Asia are seeing a decline in startup investments, with the top sectors for investment being AI, Web3, asset tokenization, and semiconductors. Additionally, the fusion of AI and blockchain is creating new investment opportunities, and the prospects for Web3 and AI markets remain strong.
The global video intercom device industry is experiencing robust growth, driven by increasing demand in the security and surveillance sector and evolving hardware and software innovations, with the market expected to expand at a CAGR of 13.2% and reach a valuation of $128.2 billion by 2033.
The Thai smartphone market is expected to decline by double digits this year due to a weak economy and decreased consumer purchasing power, but is projected to improve in the fourth quarter with the release of new flagship phones.
The USD/JPY is trading above the 150.00 level as markets challenge the Bank of Japan (BoJ) to intervene, while Tokyo CPI inflation beats expectations.
Asian equities are expected to have a mixed open following solid earnings from big tech stocks on Wall Street, with US share futures advancing and the Nasdaq 100 gaining in the Asian session after falling on Thursday.
Dow Jones futures rose slightly after hours, along with S&P 500 and Nasdaq futures, following a stock market correction that saw tech titans like Meta Platforms (META) and Google parent Alphabet (GOOGL) take a hit, while Amazon.com (AMZN) reported better-than-expected earnings and sales but fell to two-month lows.
Stock indices finished the trading session in the red, with the Nasdaq 100, S&P 500, and Dow Jones Industrial Average all declining, while the Communication Services sector was the top loser and the Real Estate sector was the leader; in addition, the U.S. GDP grew at its fastest pace in two years, but initial jobless claims and orders for durable goods also increased, and Tech earnings continue to weigh on investor sentiment.
Bitcoin (BTC) slipped 2% to $34,000 as the crypto market cooled off after a rally, with meme coins like DOGE and PEPE outperforming, while LINK and AGLD dropped; however, BTC is still in its fifth bull market driven by institutional adoption and could reach $125,000 by the end of 2024, according to Matrixport.
Millennials are embracing fixed-income exchange-traded funds (ETFs) despite the volatile bond market, with an average of 45% of their portfolios allocated to fixed income, according to a survey by Charles Schwab's asset management business. Additionally, the survey found that 63% of ETF investors view a portfolio consisting of 60% stocks and 40% bonds as the right mix to achieve their financial goals.
US stocks decline due to disappointing Q3 results from tech companies and high Treasury yields, with the Nasdaq in correction territory and the S&P 500 flirting with correction territory.
Stocks fell sharply on Thursday and bond yields dropped as a slide in technology shares overshadowed stronger-than-expected growth for the U.S. economy.