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Yahoo
5 hours ago
- Business
- Yahoo
S&P 500 hits an all-time high — rebounding to its level when Trump's second term began
The S&P 500 closed Friday at a new record high — rebounding to just a few points above its level around the start of President Donald Trump's second term. The broad-based stock index, which tracks the financial performance of 500 leading U.S. companies, added about 0.5% Friday to trade at roughly 6,173 points. The previous closing high of 6,144 was set Feb. 19. The Nasdaq Composite index, which largely represents tech firms, also hit a new all-time high Friday. The third major U.S. index, the Dow Jones Industrial Average, which tracks more established firms, has similarly round-tripped to near record levels since Trump retook office. The fresh stock records point to the resilience of U.S. markets, which continue to enjoy global investor support thanks to their ability to generate outsize returns over the long run. Yet the rebound has played out amid massive uncertainty sparked by a president who returned to office with expectations of boosting economic growth — and stock prices. Heading into 2025, the average Wall Street forecase for the S&P 500 was a gain of about 12% — with some projecting increases of as much as 20%. Instead, the index is instead up just 5% so far this year. 'We've entered the second half of this year with a very different market than we would have thought,' Osman Ali, portfolio manager at Goldman Sachs Asset Management, said on a recent call with clients. Among the year's biggest stock gainers are data firm Palantir, NRG Energy, data center supplier Super Micro Computer, gold miner Newmont and Uber. Meanwhile, food and apparel companies — such as Deckers Outdoor, Lululemon, Brown-Forman, Constellation and Campbell's — have been weighed down by tariff fears and rank as S&P's worst performers this year so far. Wall Street's path to the new highs has been turbulent. Shortly after the S&P 500 hit its last record in February, investors became alarmed that the leading force propelling stocks higher — massive investments in artificial intelligence — was a mirage. That narrative gained momentum when researchers announced the advent of a Chinese AI model, DeepSeek, that appeared to require far less spending for nearly comparable output. Between Feb. 19 and March 13, the index fell more than 10%. But it wasn't until the April 2 Rose Garden speech, in which Trump announced eye-watering tariffs on dozens of nations, that the S&P plunged another 10% in a matter of days. In two sessions alone, more than $5 trillion in U.S. market value was wiped out — the largest two-day loss in history. Stacked on top of losses year to date, the index seemed headed for an outright bear market, or a 20% drawdown from its February highs. Finally, on April 9, Trump announced a 90-day pause on the steeper duties. The bottom was in, and the stage was set for a dramatic rebound. Between that date and Friday — despite significant bouts of volatility — the index has gained more than 20%. Analysts say markets largely figured out that Trump's tariff rhetoric was frequently more severe than the policies that ultimately emerged. In recent weeks, said Michael Antonelli, market strategist with Baird Private Wealth Management, the president has stopped front-footing trade duties as he works to get his spending and tax cut bill through Congress and manage the conflict in the Middle East. Investor sentiment has also been buoyed by the perception that some Federal Reserve officials are signaling openness to lowering borrowing costs in the economy as inflation has cooled and the job market has weakened. Lower interest rates tend to boost stocks as more money becomes available to invest in them. 'Why do we want to wait until we actually see a crash before we start cutting rates?' Fed Governor Christopher Waller said in a CNBC interview last week, referring to the job market. 'So I'm all in favor of saying maybe we should start thinking about cutting the policy rate at the next meeting.' More simply, corporate earnings — which stock prices are designed to reflect — have held up. According to Yardeni Research markets analysis group, current earnings estimates are only slightly off their targets heading into the year. Analysts say investors have been rewarding firms for keeping headcounts low and for investing in AI. Yet plenty of questions remain about stocks' ultimate trajectory. 'We do not believe that the current policy turbulence is going to go away,' Torsten Slok, chief economist at Apollo Global Management, said in a note to clients this week. 'This is not a political view; it's just a view expressing that policy uncertainty is elevated and is likely to remain so.' This article was originally published on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
5 hours ago
- Business
- Yahoo
McGraw Hill files for a NYSE IPO
-- McGraw Hill, a leading global provider of educational information solutions, has filed for a proposed initial public offering (IPO) on the New York Stock Exchange. The company intends to list its shares under the ticker "MH." Goldman Sachs will serve as the lead underwriter for the offering. Additional underwriters include BMO Capital Markets, J.P. Morgan, Macquarie Capital, and Morgan Stanley, among others. Financial data included in the filing shows the company generated revenue of $2,101.3 million for the fiscal year ended March 31, 2025, up from $1,960.5 million in 2024 and $1,947.8 million in 2023. Despite the revenue growth, McGraw Hill reported a net loss of $85.8 million for fiscal year 2025. This represents an improvement from net losses of $193.0 million in 2024 and $404.1 million in 2023. The company has not yet disclosed the number of shares to be offered or the price range for the proposed offering. McGraw Hill delivers personalized learning experiences across the educational spectrum, from K-12 to higher education and professional learning. It utilizes content, data-driven insights, and learning science to create its educational products and services. The company claims that it serves approximately 60 million learners and educators on an annual basis. Related articles McGraw Hill files for a NYSE IPO OpenAI taps Google Cloud TPUs in bid to diversify AI chip supply - The Information TransUnion, Equifax stocks fall after FHFA Director announces credit bureau review Sign in to access your portfolio
Entrepreneur
8 hours ago
- Business
- Entrepreneur
Goldman Sachs Internship Acceptance Harder Than Harvard
Goldman Sachs' famed summer internship program began last week. The 10-week program allows college students to "spend the summer learning from the firm's leaders, working on the most consequential challenges in finance, and growing as professionals," according to the company. But you'll have an easier time getting accepted into Harvard University than becoming a Goldman Sachs summer intern. While Harvard boasted a low 3.6% acceptance rate for its undergraduate class of 2028, Goldman Sachs had an even lower acceptance rate for its 2025 summer internship: 0.7%. Related: Goldman Sachs Asks Some Managers to Move From Major Hubs Like New York City to Emerging Regions Like Dallas — Or Quit Over 360,000 global applicants applied for 2,600 seats in offices around the world, marking "the most competitive intern class" in the bank's history, the firm noted in a LinkedIn post. Over 500 schools were represented, with more than 85 languages spoken among the accepted batch. Since David Solomon took over as Goldman Sachs CEO in 2018, the number of applicants for the bank's coveted summer internship program has grown more than 300%, according to Fox Business. Compared to a year ago, the applicant pool has expanded by 15%. Goldman isn't the only bank with a less than 1% acceptance rate for its summer internship. JPMorgan reported receiving 493,000 applications last year for 4,000 seats, marking an acceptance rate of 0.8%. The interview process for Goldman internships involves two steps: First, a 30-minute video interview with HireVue, and second, a "superday" final round of interviews with two to five interviewers. Engineering candidates additionally have to pass an online skills assessment. According to Glassdoor, interns were asked questions like "Walk me through your resume," "Explain banking like you were five," and "Why Goldman Sachs?" Related: Goldman Sachs CIO Says Coders Should Take Philosophy Classes — Here's Why The application process for Goldman's intern program begins over a year in advance, in the spring of the previous year. Final round interviews are already underway for candidates for next year's internship class. Applicants have typically completed their junior year of college by the time the internship starts, making them sophomores at the time they apply. What's harder than landing an internship at JPMorgan or Goldman Sachs? Being a NASA astronaut, which only accepted 10 out of 12,000 applicants when it opened up selection in 2020, for an acceptance rate of 0.083%. Goldman Sachs stock was up over 20% year-to-date.
Yahoo
8 hours ago
- Business
- Yahoo
The biggest US banks pass another Fed stress test, boosting case for looser capital rules
The Federal Reserve's latest stress tests show that the largest U.S. banks could withstand a severe recession with plenty of capital on hand to absorb hundreds of billions in losses. This year the Fed's regulatory exam applied to 22 banks with assets of more than $100 billion, a group that included Wall Street giants such as JPMorgan Chase (JPM), Bank of America (BAC), Citigroup (C), Wells Fargo (WFC), Goldman Sachs (GS) and Morgan Stanley (MS). 'Large banks remain well capitalized and resilient to a range of severe outcomes,' the Fed's vice chair for supervision Michelle Bowman said. All 22 lenders were able to show that their capital levels would stay above a key threshold in a scenario where GDP contracts by nearly 8%, unemployment soars to 10%, home prices plunge 33%, and the stock market drops by 50%. Their common equity tier 1 capital ratio as a group was 11.6%, well above the required minimum of 4.6%. The banks' losses in this simulation also collectively amounted to more than $550 billion. That included $148 billion from credit card losses, $124 billion from business loans, and $52 billion from commercial real estate. The passing grade for all banks could help the Trump administration make its case that it is time to loosen rules for financial institutions as it implements a deregulatory agenda it hopes will boost lending and drive economic growth. Earlier this week US regulators proposed one of the most dramatic rollbacks of bank capital rules since the 2008 financial crisis as they suggested altering the so-called enhanced supplementary leverage ratio (eSLR). Banks have complained this ratio penalizes them for holding lower-risk assets such as Treasury bonds. More regulatory changes for big banks could still be on the way. Bowman, the Fed's top banking regulator appointed by Trump, made it clear in a speech Monday that revisiting the eSLR requirement is just the start of broader capital rollback considerations. "More work on capital requirements remains, especially to consider how they have evolved and whether changes in market conditions have revealed issues that should be addressed," she said. Other capital requirements under consideration for adjustment include the surcharge on global systemically important banks and the asset thresholds that define how strict regulatory standards are for each institution. On July 22, the Fed will host a conference to bring together leaders to discuss the capital framework for US banks. JPMorgan CEO Jamie Dimon has asked the administration to consider a broad set of changes. Among the biggest Wall Street banks, JPMorgan had the highest level of capital under the Fed's stressed scenario. "We expect to see additional regulatory relief measures announced for the banking industry in the coming months,' said RBC banking analyst Gerard Cassidy. 'Regulatory relief will likely lead to higher bank profitability and increased merger and acquisition activity." The Fed tests were first mandated annually by law following the 2008 financial crisis as a way of assessing the stability of the nation's giant lenders. There will also likely be changes to these Fed tests in future years. The Fed is seeking public input on the models used to determine the hypothetical losses and revenue of banks under stress, and it will use that feedback to make improvements going forward. Banks showed a smaller decline in capital under the stressed scenario this year than in years past, which the Fed says is due to volatility in the models and milder deterioration in the economy. Loan losses were also lower this year. Lenders typically use the results of the annual Fed tests to determine how much they should have on their balance sheet to absorb shocks and how much they have left over for dividends and buybacks. The Fed has asked banks not to make announcements about how much money they plan to return to shareholders until early next week. In a note earlier this week, Wells Fargo analyst Mike Mayo indicated that good stress test scores for the biggest banks would give a 'green light' for these lenders 'to deploy more capital for loans, deals, and buybacks.' Click here for in-depth analysis of the latest stock market news and events moving stock prices 擷取數據時發生錯誤 登入存取你的投資組合 擷取數據時發生錯誤 擷取數據時發生錯誤 擷取數據時發生錯誤 擷取數據時發生錯誤
Yahoo
9 hours ago
- Business
- Yahoo
GS Iron Condor Could See a 33% Return in 3 Weeks
Goldman Sachs (GS) is due to report earnings after the market close on July 16th. The Barchart Technical Opinion rating is a 88% Buy with a Strongest short term outlook on maintaining the current direction. GS rates as a Strong Buy according to 9 analysts with 1 Moderate Buy rating and 13 Hold ratings. Heavy Volume in Advanced Micro Devices Options Is a Bullish Signal GS Iron Condor Could See a 33% Return in 3 Weeks Stop Missing Market Moves: Get the FREE Barchart Brief – your midday dose of stock movers, trending sectors, and actionable trade ideas, delivered right to your inbox. Sign Up Now! Implied volatility is 66.45% which gives GS an IV Percentile of 71% and an IV Rank of 21.42%. The Goldman Sachs Group, Inc. is a leading global financial holding company providing IB, securities, investment management and consumer banking services to a diversified client base. It has 4 broad segments. The IB segment comprises the Financial Advisory, Underwriting and lending to corporate clients. The Global Markets segment comprises Fixed Income, Currency and Commodities, which include client-execution activities related to making markets in credit products, interest rate products, mortgages, currencies and commodities. Equities include client execution activities related to making markets in equities, commissions and fees, and its securities services business, warehouse lending & structured financing to institutional clients, advisory and underwriting assignments. The Consumer & Wealth Management segment includes management and other fees, incentive fees and results from deposit-taking activities related to wealth management business. The Asset Management division comprises management and other fees. Goldman Sachs Earnings Iron Condor Today, we're going to look at an iron condor trade placed over earnings. These types of trades can be high risk, so make sure you understand how they work before attempting something like this. Ideally, we would like to close it out before earnings. An iron condor aims to profit from a drop in implied volatility, with the stock staying within an expected range. When implied volatility is high, the wider the expected range becomes. The maximum profit for an iron condor is limited to the premium received while the maximum potential loss is also capped. To calculate the maximum loss, take the difference in the strike prices of the long and short options, and subtract the premium received. Trade Setup As a reminder, an iron condor is a combination of a bull put spread and a bear call spread. The idea with the trade is to profit from time decay while expecting that the stock will not move too much in either direction. First, we take the bull put spread. Using the July 18th expiry, we could sell the $615 put and buy the $610 put. That spread could be sold yesterday for around $0.60. Then the bear call spread, which could be placed by selling the $725 call and buying the $735 call. This spread could be sold yesterday for around $0.65. In total, the iron condor will generate around $1.25 per contract or $125 of premium. The profit zone ranges between $613.75 and $726.25. This can be calculated by taking the short strikes and adding or subtracting the premium received. As both spreads are $5 wide, the maximum risk in the trade is 5 – 1.25 x 100 = $375. Therefore, if we take the premium ($125) divided by the maximum risk ($375), this iron condor trade has the potential to return 33.33%. If price action stabilizes, then iron condors will work well. However, if GS stock makes a bigger than expected move, the trade will suffer losses. Trades held over earnings allow little room for adjusting, so they can be a bit hit or miss. Conclusion And Risk Management This iron condor on Goldman Sachs offers a well-balanced, high-probability setup for options traders seeking steady income with defined risk. By targeting short strikes that sit outside key support and resistance levels, the trade benefits from time decay while maintaining a healthy risk/reward profile. Remember to close before earnings if you do not want earnings risk. Please remember that options are risky, and investors can lose 100% of their investment. This article is for education purposes only and not a trade recommendation. Remember to always do your own due diligence and consult your financial advisor before making any investment decisions. On the date of publication, Gavin McMaster did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on
