Latest news with #S&P 500
Yahoo
3 hours ago
- Business
- Yahoo
Stock market rally stalls as Wall Street digests US-EU trade deal
US stocks were mixed Monday and the S&P 500 was on the verge of snapping a five-day win streak as investors digested the announcement of a trade deal between Washington and Brussels. Stocks fluctuated between gains and losses Monday afternoon after President Donald Trump and President of the European Commission Ursula von der Leyen on Sunday announced a framework for a US-EU trade deal. The Dow fell 100 points, or 0.2%. The broader S&P 500 edged lower by 0.07%. The tech-heavy Nasdaq Composite gained 0.25%. While markets initially cheered the US-EU trade deal, stocks dipped lower on Monday, putting a pause on a recent hot streak. The Dow had traded near record-high territory earlier. The index needs a gain of 0.39% to surpass its previous intraday record of 45,073.63, set on December 4. The blue-chip index needs to finish the day with a gain of about 115 points, or 0.25%, to close at a record high, which would be its first this year. While the S&P 500 and Nasdaq have clinched numerous records this month, the Dow is still searching for its first record high since early December. Trump and von der Leyen met in Scotland and announced the deal, which includes a 15% tariff on US imports of EU goods. The announcement was in line with investors' expectations and initially perceived to be better for markets than Trump's previous threat of a 30% tariff. 'The EU-US trade deal removes a significant layer of uncertainty from markets,' Paul Stanley, chief investment officer at Granite Bay Wealth Management, said in an email. 'While a 15% baseline tariff remains in effect, and still has the potential to increase prices for goods across the board, falling uncertainty is positive for markets and this deal is a signal to markets that we can soon move on from this issue and focus more on fundamentals,' Stanley said. Stocks in Europe had a mixed day. Europe's benchmark Stoxx 600 index on Monday hit its highest level in four months before dropping 0.2%. Meanwhile, Germany's DAX index initially rose before turning into the red and sliding 1%. The US dollar index, which measures the dollar's strength against six major foreign currencies, gained 1%. The euro slid 1.4% against the dollar. Trump's tariffs are expected to hit the EU's economic growth, according to forecasts by Capital Economics. Deciphering Trump's tariffs Stocks were coming off a strong week as investors had welcomed progress on trade negotiations. The S&P 500 on Monday tried to rise further into record territory after notching five consecutive record highs last week. Stock futures on Sunday evening jumped higher, albeit modestly, after the US-EU trade deal was announced as Wall Street was relieved that Trump did not push forward with even higher tariffs. Some investors had been fearing a worst-case scenario of dramatically high tariffs that could have disrupted supply chains and dealt a firm blow to economic growth. But some investors have also called Trump's bluff on his trade war, betting the president will avoid enormous tariffs that could derail the economy. 'Ultimately, this is good news from a financial markets perspective as it reduces uncertainty further still ahead of the 1st August, which is now looking like an insignificant date,' Derek Halpenny, head of research for global markets at MUFG, said in a note. Jack Allen-Reynolds, deputy chief euro-zone economist at Capital Economics, said in a note that while the trade deal is a positive development, 'uncertainty is likely to remain high for the foreseeable future.' 'This will reduce uncertainty in the near term and has understandably been greeted positively by the markets this morning,' Allen-Reynolds said. 'But the fine details of the deal may not yet have been agreed. And President Trump could still change his mind even after the deal has been finalized and signed.' A head-spinning week for markets Investors are bracing for a jam-packed week for markets. In addition to the closely watched monthly jobs report, there's a slew of corporate earnings, including results for four of the seven companies in the so-called Magnificent Seven tech stocks: Meta and Microsoft on Wednesday and then Amazon and Apple on Thursday. Companies that account for 37% of the S&P 500's market weight will report their second-quarter earnings this week, according to analysts at Deutsche Bank, signifying its importance for Wall Street. The Federal Reserve on Wednesday is set to make a decision on interest rates. Global investors will also be keeping an eye on the Bank of Canada, set to announce a decision on rates the same day; as well as the Bank of Japan, which is set to make an announcement on interest rates on Thursday. 'The Fed is likely to stay in wait-and-see mode in July, with an emphasis on data dependence,' analysts at Bank of America said in a note. Jan Hatzius, chief economist at Goldman Sachs, said he expects the Fed to hold rates steady at this meeting before beginning a rate-cutting cycle that includes quarter-point cuts in September, October and December, followed by two more in 2026. Commerce Department data due Wednesday will showcase the initial reading of how much the economy grew (or contracted) in the second quarter. The US economy in the first quarter contracted for the first time in years. Investors earlier this year were concerned about the prospects of the US economy sliding into recession due to the impact of tariffs. A recession is often defined as two consecutive quarters of the economy contracting. Representatives from Washington and Beijing are meeting in Sweden this week to discuss trade. Ed Yardeni, president of Yardeni Research, said in a note that he expects economic data and earnings to provide a boost to stocks, regardless of trade deal news. 'The financial markets anticipated the latest deal, and the reaction to it is likely to be relatively muted this week,' Yardeni said. 'More important will be the slew of labor market indicators this week, culminating on Friday with the release of July's employment report.' Yardeni said he thinks the labor market is doing well, and he expects stocks to continue climbing higher if the big tech companies post earnings results that exceed expectations.
Yahoo
11 hours ago
- Business
- Yahoo
Oppenheimer Lifts S&P 500 Target to Call Third Year of 20% Gains
(Bloomberg) — Progress in trade negotiations will take the S&P 500 (^GSPC) to a third consecutive year of 20% gains, according to Oppenheimer Asset Management, a feat unseen since the late 1990s. The High Costs of Trump's 'Big Beautiful' New Car Loan Deduction Can This Bridge Ease the Troubled US-Canadian Relationship? Budapest's Most Historic Site Gets a Controversial Rebuild Trump Administration Sues NYC Over Sanctuary City Policy Chief investment strategist John Stoltzfus raised his year-end target for the US benchmark to 7,100 points from 5,950, the highest among a panel of strategists tracked by Bloomberg. The new forecast implies an 11% upside from Friday's close. 'Progress on trade negotiations removes an uncertainty that had weighed on our market outlook,' Stoltzfus wrote in a note. He also lifted his 2025 earnings estimate for S&P 500 firms to $275 per share, 3% higher than the average analyst forecast. He reinstated his previous price target after cutting it in April post a negative market reaction to so-called 'Liberation Day.' Meanwhile, Morgan Stanley strategists led by Michael Wilson reiterated that the bull case for the S&P 500 is solidifying. US stocks have rallied to record highs as the US administration struck a series of trade deals ahead of the Aug. 1 deadline, including with Japan and the European Union, setting a broad 15% duty on imports. Several exporters in Asia, including Indonesia and the Philippines, have negotiated reciprocal rates between 15% to 20%. Washington's talks also continue with a number of countries including Switzerland, South Korea and Taiwan. Meanwhile, the US and China are expected to extend their tariff truce by another three months. Oppenheimer's new profit estimates imply further valuation expansion for the benchmark to 25.8 times forward price-to-earnings ratio, compared with 22.5 currently. The strategists noted that corporate revenue and earnings growth in the past two quarters surprised to the upside, while results for the earnings season currently underway are showing 84% of companies are exceeding analyst consensus expectations. —With assistance from Jessica Menton. Burning Man Is Burning Through Cash It's Not Just Tokyo and Kyoto: Tourists Descend on Rural Japan Elon Musk's Empire Is Creaking Under the Strain of Elon Musk Confessions of a Laptop Farmer: How an American Helped North Korea's Wild Remote Worker Scheme Dude! They Killed Colbert! ©2025 Bloomberg L.P. Sign up for the Yahoo Finance Morning Brief By subscribing, you are agreeing to Yahoo's Terms and Privacy Policy 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
Bloomberg
12 hours ago
- Business
- Bloomberg
Oppenheimer Lifts S&P 500 Target to Call Third Year of 20% Gains
Progress in trade negotiations will take the S&P 500 to a third consecutive year of 20% gains, according to Oppenheimer Asset Management, a feat unseen since the late 1990s. Chief investment strategist John Stoltzfus raised his year-end target for the US benchmark to 7,100 points from 5,950, the highest among a panel of strategists tracked by Bloomberg. The new forecast implies an 11% upside from Friday's close.
Bloomberg
a day ago
- Business
- Bloomberg
Return of Meme Stock Mania Has Traders on Alert for Market Froth
The reemergence of meme stock mania last week has professional investors facing a quandary: ride the excitement of retail traders or take it as the latest warning sign that the frothy markets are due for a pullback. The speculative stocks caught up in the frenzy this week, like Opendoor Technologies Inc. and Kohl's Corp., gave up some of their gains as the week went on, but most are still trading at their highest levels in months. The broader S&P 500 Index and Nasdaq 100 Index are doing even better, sitting at all-time highs after charging back from the early April selloff set off by President Donald Trump's tariff announcements.
Free Malaysia Today
2 days ago
- Business
- Free Malaysia Today
US stock futures pause after record S&P 500, Nasdaq run
All three major indexes were on track to end the week on a positive note as recent trade deals helped propel markets to new highs. (AP pic) NEW YORK : Wall Street futures held steady today as investors took a breather following record closes for the S&P 500 and the Nasdaq in the previous session and awaited clarity on trade negotiations ahead of next week's tariff deadline. At 5.41am, Dow E-minis rose 61 points, or 0.14%, S&P 500 E-minis were up 5.75 points, or 0.09%, and Nasdaq 100 E-minis were down 1.75 points, or 0.01%. The blue-chip Dow fell 0.7% in yesterday's session, but remained close to its all-time high, last hit in December. All three major indexes were on track to end the week on a positive note as recent trade deals between the US and its trading partners, including Japan, Indonesia and the Philippines, helped propel markets to new highs. An agreement with the EU was in the pipeline, while talks with South Korea were underway as next week's Aug 1 deadline for many countries looms, with investors hoping that steep US import levies could be averted. The recent climb to a series of record highs was also aided by upbeat second quarter (Q2) earnings. Of the 152 companies in the S&P 500 that reported earnings as of yesterday, 80.3% reported above analyst expectations, according to data compiled by LSEG. However, there were a few setbacks this week from heavyweights such as Tesla, with CEO Elon Musk warning of rough quarters ahead in the wake of shrinking US government subsidies for EVs. Intel dropped 6% in premarket trading on Friday after the chipmaker forecast steeper third-quarter losses than Wall Street had estimated and announced plans to slash jobs. Next week will feature the US Federal Reserve's (Fed) monetary policy meeting, with broader market bets pointing to a 'hold' verdict by policymakers as they continue to assess the impact of tariffs on inflation. US President Donald Trump – a staunch critic of Fed chair Jerome Powell – made a rare presidential visit to the central bank's headquarters yesterday, where he criticised its US$2.5-billion renovation project. This marked another escalation in Trump's efforts to pressure Powell into cutting interest rates. The president has often mused in the past about firing the top policymaker and replacing him with someone more willing to cut borrowing costs. According to the CME FedWatch tool, traders are pricing in a 58.6% chance of a reduction in September. Among other stocks, Newmont added 2% after the gold miner surpassed Wall Street expectations for Q2 profit. Meanwhile, Paramount Global rose 2% after US regulators approved its US$8.4 billion merger with Skydance Media.
