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Time of India
5 hours ago
- Business
- Time of India
S&P 500, Nasdaq hit record closing highs amid trade negotiations, rate cut bets
Live Events (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel NEW YORK: Wall Street extended its rally on Friday, sending S&P 500 and Nasdaq to all-time closing highs as trade deal hopes fueled investor risk appetite and economic data helped solidify expectations for rate cuts from the U.S. Federal pared gains after U.S. President Donald Trump terminated trade negotiations with Canada in response to its digital tax on technology so, all three major U.S. stock indexes posted weekly gains. Upon reaching its record closing high, the tech-heavy Nasdaq confirmed it entered a bull market when it touched its post "liberation day" trough on April blue-chip Dow remained 2.7% below its record closing high reached on December 4."This market's been pretty resilient," said Chuck Carlson, chief executive officer at Horizon Investment Services in Hammond, Indiana. "Investors are riding momentum and looking for breakouts.""They don't want to get caught on the wrong side of this thing," Carlson added. "Many investors already have missed out. And now you have the S&P flirting with an all-time high."The Personal Consumption Expenditures report from the Commerce Department showed consumer income and spending unexpectedly contracted in May. And while tariffs have yet to affect price growth, inflation continues to hover above the Fed's 2% annual inflation target.A separate report from the University of Michigan confirmed consumer sentiment has improved this month, but remains well below December's post-election markets have priced in a 76% likelihood that the Fed will implement its first rate cut of the year in September, with a smaller, 19% probability of a rate cut coming as soon as July, according to CME's FedWatch and Beijing reached an agreement to expedite rare-earth shipments from China to the U.S., a White House official said, well ahead of the July 9 expiration of the 90-day postponement of U.S. President Donald Trump's "reciprocal" U.S. Treasury Secretary Scott Bessent said the administration's trade deals with 18 of the main U.S. trading partners could be done by the September 1 Labor Day Dow Jones Industrial Average rose 432.43 points, or 1.00%, to 43,819.27, the S&P 500 gained 32.05 points, or 0.52%, to 6,173.07 and the Nasdaq Composite gained 105.55 points, or 0.52%, to 20, the 11 major sectors of the S&P 500, consumer discretionary enjoyed the biggest percentage gain, while energy shares were the laggards. Chipmaker Micron's MU.O upbeat forecast revived investor confidence in artificial intelligence-related stocks, while Nvidia NVDA.O rose 1.8%, edging closer to $4 trillion market capitalization after reclaiming its position as the world's most valuable shares NKE.N jumped 15.2% after forecasting a smaller-than-expected drop in first-quarter revenue. Advancing issues outnumbered decliners by a 1.29-to-1 ratio on the were 347 new highs and 55 new lows on the NYSE. On the Nasdaq, 2,111 stocks rose and 2,342 fell as declining issues outnumbered advancers by a 1.11-to-1 S&P 500 posted 35 new 52-week highs and 6 new lows while the Nasdaq Composite recorded 101 new highs and 68 new on U.S. exchanges was 22.07 billion shares, compared with the 18.27 billion average for the full session over the last 20 trading days.
Business Times
10 hours ago
- Business
- Business Times
US: S&P 500, Nasdaq hit record closing highs amid trade negotiations, rate cut bets
[NEW YORK] Wall Street extended its rally on Friday (Jun 27), sending S&P 500 and Nasdaq to all-time closing highs as trade deal hopes fuelled investor risk appetite and economic data helped solidify expectations for rate cuts from the US Federal Reserve. Stocks pared gains after US President Donald Trump terminated trade negotiations with Canada in response to its digital tax on technology companies. Even so, all three major US stock indices posted weekly gains. Upon reaching its record closing high, the tech-heavy Nasdaq confirmed it entered a bull market when it touched its post 'Liberation Day' trough on Apr 8. The blue-chip Dow remained 2.7 per cent below its record closing high reached on Dec 4. 'This market's been pretty resilient,' said Chuck Carlson, chief executive at Horizon Investment Services in Hammond, Indiana. 'Investors are riding momentum and looking for breakouts.' 'They don't want to get caught on the wrong side of this thing,' Carlson added. 'Many investors already have missed out. And now you have the S&P flirting with an all-time high.' BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up The Personal Consumption Expenditures report from the Commerce Department showed consumer income and spending unexpectedly contracted in May. And while tariffs have yet to affect price growth, inflation continues to hover above the Fed's 2 per cent annual inflation target. A separate report from the University of Michigan confirmed consumer sentiment improved this month, but remains well below December's post-election bounce. Financial markets have priced in a 76 per cent likelihood that the Fed will implement its first rate cut of the year in September, with a smaller, 19 per cent probability of a rate cut coming as soon as July, according to CME's FedWatch tool. Washington and Beijing reached an agreement to expedite rare-earth shipments from China to the US, a White House official said, well ahead of the Jul 9 expiration of the 90-day postponement of Trump's 'reciprocal' tariffs. Additionally, US Treasury Secretary Scott Bessent said the administration's trade deals with 18 of the main US trading partners could be done by the Sep 1 Labor Day holiday. The Dow Jones Industrial Average rose 432.43 points or 1 per cent to 43,819.27, the S&P 500 gained 32.05 points or 0.5 per cent to 6,173.07 and the Nasdaq Composite gained 105.55 points or 0.5 per cent to 20,273.46. Among the 11 major sectors of the S&P 500, consumer discretionary enjoyed the biggest percentage gain, while energy shares were the laggards. Chipmaker Micron's MU.O upbeat forecast revived investor confidence in artificial intelligence-related stocks, while Nvidia NVDA.O rose 1.8 per cent, edging closer to US$4 trillion market capitalisation after reclaiming its position as the world's most valuable company. Nike's shares NKE.N jumped 15.2 per cent after forecasting a smaller-than-expected drop in first-quarter revenue. Advancing issues outnumbered decliners by a 1.29-to-1 ratio on the NYSE. There were 347 new highs and 55 new lows on the NYSE. On the Nasdaq, 2,111 stocks rose and 2,342 fell as declining issues outnumbered advancers by a 1.11-to-1 ratio. The S&P 500 posted 35 new 52-week highs and six new lows while the Nasdaq Composite recorded 101 new highs and 68 new lows. Volume on US exchanges was 22.07 billion shares, compared with the 18.27 billion average for the full session over the last 20 trading days. REUTERS
CNA
18-06-2025
- Business
- CNA
Investors see quick stock market drop if US joins Israel-Iran conflict
Financial markets may be in for a "knee-jerk" selloff if the U.S. military attacks Iran, with economists warning that a dramatic rise in oil prices could damage a global economy already strained by President Donald Trump's tariffs. Oil prices fell nearly 2 per cent on Wednesday as investors weighed the chance of supply disruptions from the Israel-Iran conflict and potential direct U.S. involvement. The price of crude remains up almost 9 per cent since Israel launched attacks against Iran last Friday in a bid to cripple its ability to produce nuclear weapons. With major U.S. stock indexes trading near record highs despite uncertainty about Trump's trade policy, some investors worry that equities may be particularly vulnerable to sources of additional global uncertainty. Chuck Carlson, chief executive officer at Horizon Investment Services, said U.S. stocks might initially sell off should Trump order the U.S. military to become more heavily involved in the Israel-Iran conflict, but that a faster escalation might also bring the situation to an end sooner. "I could see the initial knee-jerk would be, 'this is bad'," Carlson said. "I think it will bring things to a head quicker." Wednesday's dip in crude, along with a modest 0.3 per cent increase in the S&P 500, came after Trump declined to answer reporters' questions about whether the U.S. was planning to strike Iran but said Iran had proposed to come for talks at the White House. Adding to uncertainty, Iranian Supreme Leader Ayatollah Ali Khamenei rejected Trump's demand for unconditional surrender. U.S. Treasury yields fell as concerns over the war in Iran boosted safe haven demand for the debt. The U.S. military is also bolstering its presence in the region, Reuters reported, further stirring speculation about U.S. intervention that investors fear could widen the conflict in an area with critical energy resources, supply chains and infrastructure. With investors viewing the dollar as a safe haven, it has gained around 1 per cent against both the Japanese yen and Swiss franc since last Thursday. On Wednesday, the U.S. currency took a breather, edging fractionally lower against the yen and the franc. 'I don't think personally that we are going to join this war. I think Trump is going to do everything possible to avoid it. But if it can't be avoided, then initially that's going to be negative for the markets,' said Peter Cardillo, Chief Market Economist at Spartan Capital Securities in New York. "Gold would shoot up. Yields would probably come down lower and the dollar would probably rally." Barclays warned that crude prices could rise to $85 per barrel if Iranian exports are reduced by half, and that prices could rise about $100 in the "worst case" scenario of a wider conflagration. Brent crude was last at about $76. Citigroup economists warned in a note on Wednesday that materially higher oil prices "would be a negative supply shock for the global economy, lowering growth and boosting inflation—creating further challenges for central banks that are already trying to navigate the risks from tariffs." Trump taking a "heavier hand" would not be a surprise to the market, mitigating any negative asset price reaction, Carlson said, while adding that he was still not convinced that the U.S. would take a heavier role. Trades on the Polymarket betting website point to a 63 per cent expectation of "U.S. military action against Iran before July", down from as much as an 82 per cent likelihood on Tuesday, but still above a 35 per cent chance before the conflict began last Friday. The S&P 500 energy sector index has rallied over 2 per cent in the past four sessions, lifted by a 3.8 per cent gain in Exxon Mobil and 5 per cent rally in Valero Energy. That compares to a 0.7 per cent drop in the S&P 500 over the same period, reflecting investor concerns about the impact of higher oil prices on the economy, and about growing global uncertainty generated by the conflict. Turmoil in the Middle East comes as investors are already fretting about the effect of Trump's tariffs on the global economy. The World Bank last week slashed its global growth forecast for 2025 by four-tenths of a percentage point to 2.3 per cent, saying that higher tariffs and heightened uncertainty posed a "significant headwind" for nearly all economies. Defense stocks, already lifted by Russia's conflict with Ukraine, have made modest gains since Israel launched its attacks. The S&P 500 Aerospace and Defense index hit record highs early last week in the culmination of a rebound of over 30 per cent from losses in the wake of Trump's April 2 "Liberation Day" tariff announcements. Even after the latest geopolitical uncertainty, the S&P 500 remains just 2 per cent below its February record high close. "Investors want to be able to look past this, and until we see reasons to believe that this is going to be a much larger regional conflict with the U.S. perhaps getting involved and a high chance of escalating, you're going to see the market want to shrug this off as much as it can,' Osman Ali, global co-head of Quantitative Investment Strategies, said at an investor conference on Wednesday.
Business Recorder
26-05-2025
- Business
- Business Recorder
Wall Street Week Ahead: Nvidia earnings in focus as rising US yields, debt rattle market
NEW YORK: An earnings report from semiconductor giant and artificial intelligence bellwether Nvidia takes center stage for Wall Street in the coming week, as stocks hit a speed bump of worries over federal deficits driving up Treasury yields. US equities have pulled back this week after a torrid rally, as investors turned their attention to tax and spending legislation poised to swell the US government's $36 trillion in debt. Long-dated US Treasury yields rose amid the fiscal worries, with the 30-year yield topping 5% and hitting its highest level since late 2023. Focus will shift to Wednesday's quarterly results from Nvidia, one of the world's largest companies by market value whose stock is a major influence on benchmark equity indexes. 'All eyes are going to be on Nvidia's report,' said Chuck Carlson, CEO of Horizon Investment Services. 'The whole AI theme has been a major driver of the market and Nvidia is at the epicenter of that theme.' Nvidia will be the last of the 'Magnificent Seven' megacap tech and growth companies to report results for this period. Their stocks have been mixed in 2025 after leading the market higher as a group in the last two years. Nvidia shares are down 1% this year after soaring over 1,000% from late 2022 through the end of 2024 as its AI chip business spurred massive increases in revenue and profits. Nvidia's first-quarter earnings likely jumped about 45% on revenue of $43.2 billion, analysts estimated in an LSEG poll. After big tech companies earlier in the quarter signaled robust AI-related spending, Nvidia can deliver a strong message about AI and how companies' spending plans are faring, said Art Hogan, chief market strategist at B Riley Wealth. 'Nvidia can reinvigorate the enthusiasm for that theme.' Nvidia, popular among smaller retail shareholders, is an investor sentiment indicator, said Wasif Latif, chief investment officer at Sarmaya Partners. 'Given its sheer size and attention that it is commanding, there are going to be a lot of people looking for what happens with the stock,' Latif said. US-China relations could also be in focus with Nvidia's report. The company said last month it would take $5.5 billion in charges after the US government limited exports of its H20 artificial intelligence chip to China. Trade developments have whipsawed the stock market this year, especially after US President Donald Trump's April 2 announcement of sweeping tariffs on imports globally set off extreme asset price volatility. Since then, Trump's easing of tariffs, especially a US-China truce, has helped equities rebound. The benchmark S&P 500 index ended on Thursday down less than 1% for 2025, and down about 5% from its February record high. Investors shifted attention this week to the fallout from Trump's fiscal plans, especially after Moody's downgraded the US sovereign credit rating due to concerns about the nation's growing debt pile. The US House of Representatives, controlled by Trump's Republican party, on Thursday narrowly passed a tax and spending bill that would enact much of his agenda while adding an estimated $3.8 trillion to the debt over the next decade. The bill is heading to the US Senate for its review. Long-dated government bond yields have been rising globally amid a selloff. In the US, benchmark 10-year Treasury yields this week hit their highest since February. Bond prices move opposite to yields. Higher yields can diminish the appeal of stocks as they represent higher borrowing costs for companies and consumers, while making fixed income assets relatively more attractive. 'The biggest concern from an investment standpoint is that higher rates represent more competition for equities,' said Horizon's Carlson. 'If rates continue to move higher, that is going to put increasing amounts of pressure on where investors are putting their money.'
Time of India
25-05-2025
- Business
- Time of India
Wall Street on edge this week: Will Nvidia's earnings revive markets or fuel chaos amid soaring U.S. Debt?
The upcoming week on Wall Street is poised to revolve around a pivotal earnings announcement from Nvidia, the global semiconductor leader, even as investors remain wary of ballooning U.S. debt and surging Treasury yields that have rattled broader market sentiment. Nvidia Earnings in Spotlight The focus will squarely be on Nvidia, with its quarterly earnings scheduled for release on Wednesday. As the last of the so-called 'Magnificent Seven' technology giants to report this cycle, the chipmaker's performance is being closely watched due to its outsized role in the artificial intelligence (AI) boom. "All eyes are going to be on Nvidia's report," said Chuck Carlson, Chief Executive Officer at Horizon Investment Services, as quoted in a report by Reuters. Play Video Pause Skip Backward Skip Forward Unmute Current Time 0:00 / Duration 0:00 Loaded : 0% 0:00 Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 1x Playback Rate Chapters Chapters Descriptions descriptions off , selected Captions captions settings , opens captions settings dialog captions off , selected Audio Track default , selected Picture-in-Picture Fullscreen This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Text Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Transparent Caption Area Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Drop shadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Highly Prestigious OMEA Award for Indian Manufacturers ansoim Learn More Undo "The whole AI theme has been a major driver of the market and Nvidia is at the epicenter of that theme." Analyst projections compiled by LSEG estimate Nvidia's first-quarter earnings to have surged by around 45%, with revenue expected to touch $43.2 billion. Live Events The company's financial health is being seen not only as a reflection of AI momentum but also as a bellwether for broader investor sentiment. Market Pressure from Debt, Yields While tech earnings draw investor attention, economic undercurrents linked to government spending and debt are beginning to take center stage. The U.S. share market retreated this week amid heightened concern over fiscal policy. The yield on the 30-year Treasury note breached the 5% mark, its highest level since 2023, signaling investor anxiety over federal borrowing. The U.S. House of Representatives, now under Republican control, recently passed a major tax and spending bill in line with President Donald Trump's economic agenda. The proposed legislation could expand federal debt by approximately $3.8 trillion over the next decade. This development contributed to a downgrade of the U.S. sovereign credit rating by Moody's. "From an investment perspective, higher interest rates now represent more competition for equities," noted Carlson. "If this trend persists, we could see more pressure on stock valuations." Trump's Trade Posture Adds to Volatility Markets were further unsettled on Friday after U.S. President Donald Trump threatened to levy a 50% tariff on European Union imports beginning June 1. He also warned of a potential 25% tariff on Apple if iPhones sold in the U.S. are not manufactured domestically. These remarks sparked renewed concerns over trade tensions and their impact on global supply chains. Nvidia could be particularly affected, with the company already having taken a $5.5 billion charge in anticipation of lost revenue following Washington's ban on exporting its H20 AI chip to China. Outlook and Investor Sentiment Despite a strong rally earlier in the year, the S&P 500 is now down over 5.6% from its record high in February and 1.3% lower for 2025 overall. Still, Nvidia's earnings report is widely viewed as a potential catalyst. 'If Nvidia delivers strong numbers and guidance, it could reignite optimism around AI investments,' said Art Hogan, Chief Market Strategist at B Riley Wealth. As such, this week's developments are set to offer critical signals for the direction of the US share market, with Nvidia's results at the core of investor expectations. FAQs Why is Nvidia's earnings report significant this week? Nvidia is set to release its quarterly earnings on Wednesday, and as the last of the 'Magnificent Seven' tech giants to report, its results are seen as a key indicator of both AI sector momentum and broader market sentiment. What are analysts expecting from Nvidia's earnings? Analysts estimate that Nvidia's earnings have jumped by about 45%, with revenue expected to reach around $43.2 billion, driven largely by its central role in the artificial intelligence boom.
