Latest news with #marketvolatility
Yahoo
17 hours ago
- Business
- Yahoo
Is Wall Street's rally ignoring risks ahead?
Markets (^GSPC, ^IXIC, ^DJI) have climbed off the April lows, but new trade tensions and pulled earnings guidance are keeping investors on edge. Yahoo Finance Senior Reporter Allie Canal joins Market Domination to break down what could be next as Wall Street eyes rate cuts and braces for a volatile second half of the year. To watch more expert insights and analysis on the latest market action, check out more Market Domination here. Investors are really riding a wave of optimism here fueled by strong earnings, AI momentum, those hopes for Fed rate cuts, even as warning signs mount beneath the surface here. And we've seen tech, we've seen financials lead this charge higher since those April lows, but today brought a reality check, right? President Trump abruptly ending those trade talks with Canada just hours after announcing a deal with China. At the same time, several high-profile companies from GM and Mattel to American Airlines, they pulled that earnings guidance last quarter, citing global trade uncertainty, and that's added to a lot of this market volatility that we've seen in the first half of the year, but it also sets the stage for potential upside surprises. So while markets may be enjoying these highs, investors should brace for more twists and turns in the second half of the year. Here's what Wall Street strategists told us this week. At some point, uh, in the second half, we expect the Fed to cut rates. So I think all that means the market will does move higher, but there'll certainly be some gut checks along the way. The broad picture is that we are going to be in an environment where we're going to see increased fog in the data at the same time as there is increased fog from policy uncertainty and from really significant movements in terms of tariff announcements. We can filter in the knowns, hopefully, we'll get a little more clarity of how at least the Fed is seeing tariff policy with inflation, and I think we can get that with the dot plots. We just pull together how they see growth versus inflation and the impact on unemployment. So you heard the Fed mentioned quite a bit there, and to that point, markets are still pricing in a rate cut in September. We have seen the odds of a July cut rise over the past week or so. I think a lot is going to come down to that labor market report that we'll be receiving next week. If we see any material weakness on that front, I think that would increase your odds of a July cut, but that is the big question mark on the table right now heading into the back half of 2025, but so far, markets seem to really be looking through a lot of this noise and we're trading near or at those record highs currently. Sign in to access your portfolio
Yahoo
a day ago
- Business
- Yahoo
BGC Group, Inc. (BGC): A Bull Case Theory
We came across a bullish thesis on BGC Group, Inc. on The Lion's Roar - Outside the Box Investments' Substack by Dominick D'Angelo. In this article, we will summarize the bull's thesis on BGC. BGC Group, Inc.'s share was trading at $9.55 as of June 24th. An investment broker working intently at a computer, making trades in the public equity market. BGC Group is benefiting from heightened market volatility, with Fenics Brokerage revenue rising 18% year-over-year, led by a 35% surge in the Rates segment. Moody's May 2025 downgrade of the U.S. credit rating from Aaa to Aa1 has provided a fresh catalyst, likely boosting rate trading volumes. Historical data from Trump's first term suggests that trading-related firms tend to outperform during periods of political and macro uncertainty—a trend that appears to be continuing in his second term. With Lutnick's proximity to Washington developments and today's higher rate environment, BGC is even better positioned than it was eight years ago. Meanwhile, the recently closed acquisition of OTC Global is showing stronger-than-expected topline contributions. Initial expectations of $400M in annual revenue have been revised upward to $460M based on Q2 guidance, implying ~15% upside. However, its margin profile is dilutive, with pre-tax margins in the low teens versus BGC's 20%+ historical levels. Management plans to streamline operations and back office functions, with margin expansion anticipated over the next several years. OTC Global also brings new cross-selling opportunities and enhances BGC's presence in the energy space, which is projected to account for ~40% of 2026 revenue. Importantly, if voice-based energy revenues can shift to higher-margin electronic formats, it could significantly boost earnings. FMX Futures, while delayed, has launched 2-year and 5-year Treasury contracts, with volumes expected to build gradually. The recent share buyback from Howard Lutnick at $9.20, along with private placements to Josh Harris and Glenn August, removes a key overhang and further strengthens investor confidence. Previously, we covered a bullish thesis on XP Inc. by Kristopher Rymer in January 2025, which highlighted XP's dominant financial platform in Brazil, strong margins, and attractive valuation. The company's stock price has appreciated by approximately 70% since our coverage. This is because the thesis played out as expected. Dominick D'Angelo shares a similar view but emphasizes macro-driven catalysts in BGC Group's case. BGC Group, Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 40 hedge fund portfolios held BGC at the end of the first quarter, which was 33 in the previous quarter. While we acknowledge the risk and potential of BGC as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None. Sign in to access your portfolio
Bloomberg
2 days ago
- Business
- Bloomberg
Citi Rides Hedge Fund Volatility to Trillion-Dollar Growth in FX
Flavio Figueiredo's flight had just lifted off the ground in London when President Donald Trump announced sweeping 'Liberation Day' tariffs in April, setting off the biggest daily electronic trading volume ever seen by the Citigroup Inc. executive's global foreign-exchange team. Such unexpected bouts of market turmoil — as well as the bank's investments in talent and technology — have helped drive a trillion-dollar increase in FX volumes traded by Citigroup's hedge fund clients. In this year's first four months, the firm saw such business jump about 23% to a record $6.1 trillion from a year earlier.
Reuters
2 days ago
- Business
- Reuters
Argentex unit accepts UK financial watchdog's restrictions post collapse
June 26 (Reuters) - Britain's Argentex (AGFX.L), opens new tab on Thursday said its unit has agreed to certain trading restrictions imposed by the UK's Financial Conduct Authority following the currency risk manager's collapse amid extended market volatility.
Yahoo
2 days ago
- Business
- Yahoo
High Growth Tech Stocks to Watch in June 2025
As global markets navigate a complex landscape marked by mixed performances in U.S. stock indexes and steady interest rates from the Federal Reserve, smaller-cap indexes have shown resilience, outperforming larger benchmarks amid geopolitical tensions and economic uncertainties. In this environment, identifying high-growth tech stocks involves looking for companies that can leverage innovation and adaptability to thrive despite broader market volatility, making them intriguing options for investors seeking potential growth opportunities. Name Revenue Growth Earnings Growth Growth Rating Intellego Technologies 30.80% 45.66% ★★★★★★ Shengyi Electronics 22.99% 35.16% ★★★★★★ Shanghai Huace Navigation Technology 24.44% 23.48% ★★★★★★ KebNi 20.56% 66.21% ★★★★★★ Pharma Mar 29.61% 44.92% ★★★★★★ eWeLLLtd 24.95% 24.40% ★★★★★★ Global Security Experts 20.56% 28.04% ★★★★★★ Elliptic Laboratories 36.33% 78.99% ★★★★★★ CARsgen Therapeutics Holdings 81.05% 87.21% ★★★★★★ JNTC 54.24% 87.93% ★★★★★★ Click here to see the full list of 758 stocks from our Global High Growth Tech and AI Stocks screener. Let's explore several standout options from the results in the screener. Simply Wall St Growth Rating: ★★★★☆☆ Overview: Business-intelligence of Oriental Nations Corporation Ltd. operates in the business intelligence sector and has a market capitalization of CN¥11.44 billion. Operations: The company generates revenue primarily through its business intelligence services. With a market capitalization of CN¥11.44 billion, it operates in a sector that involves data analysis and strategic insights for various industries. Despite a challenging fiscal quarter where Business-intelligence of Oriental Nations reported a net loss of CNY 27.26 million, the company's commitment to innovation is evident from its R&D investments, aligning with its strategic focus on enhancing business intelligence solutions. The firm's revenue growth forecast at 13.9% annually outpaces the broader Chinese market projection of 12.4%, highlighting potential in a competitive landscape. With earnings expected to surge by 58.31% annually, the trajectory suggests an optimistic outlook as it moves towards profitability within three years, supported by robust development initiatives and strategic market positioning in tech-intensive sectors. Click here to discover the nuances of Business-intelligence of Oriental Nations with our detailed analytical health report. Learn about Business-intelligence of Oriental Nations' historical performance. Simply Wall St Growth Rating: ★★★★★☆ Overview: Guangdong Aofei Data Technology Co., Ltd. operates in the data technology sector and has a market capitalization of CN¥19.89 billion. Operations: Aofei Data Technology focuses on the data technology sector, with its operations primarily revolving around providing data services and solutions. The company generates revenue through various segments within this industry, although specific segment details are not provided in the available information. Guangdong Aofei Data Technology is capturing attention with its robust financial performance, evidenced by a 21.9% annual revenue growth rate, outpacing the broader Chinese market's 12.4%. This surge is supported by a significant 38.7% expected annual earnings growth, reflecting strong operational efficiency and market demand for their tech solutions. Recent strategic amendments in company bylaws and proactive shareholder meetings underscore a forward-looking governance approach that aligns with its aggressive R&D investments, which are pivotal in sustaining innovation and competitive edge in the fast-evolving tech landscape. Dive into the specifics of Guangdong Aofei Data Technology here with our thorough health report. Evaluate Guangdong Aofei Data Technology's historical performance by accessing our past performance report. Simply Wall St Growth Rating: ★★★★☆☆ Overview: Taiyo Yuden Co., Ltd. is engaged in the development, manufacturing, and sale of electronic components across Japan, China, Hong Kong, and international markets with a market cap of ¥311.96 billion. Operations: Taiyo Yuden generates revenue primarily from its Electronic Components Business, which accounted for ¥341.44 billion. The company's operations span multiple regions, including Japan, China, and Hong Kong. Taiyo Yuden has shown resilience with its latest product innovations, such as the LCQPB series power inductors, enhancing its automotive electronics offerings. Despite a challenging fiscal year with earnings revised down due to foreign exchange losses, the company's commitment to R&D remains robust. With an impressive 34.9% forecasted annual earnings growth and a strategic focus on high-demand automotive components, Taiyo Yuden is positioning itself strongly within the tech sector. This approach is underscored by their active participation in major industry events like COMPUTEX Taipei and PCIM Europe 2025, signaling ongoing engagement with market trends and customer needs. Get an in-depth perspective on Taiyo Yuden's performance by reading our health report here. Explore historical data to track Taiyo Yuden's performance over time in our Past section. Investigate our full lineup of 758 Global High Growth Tech and AI Stocks right here. Are these companies part of your investment strategy? Use Simply Wall St to consolidate your holdings into a portfolio and gain insights with our comprehensive analysis tools. Elevate your portfolio with Simply Wall St, the ultimate app for investors seeking global market coverage. Explore high-performing small cap companies that haven't yet garnered significant analyst attention. Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management. Find companies with promising cash flow potential yet trading below their fair value. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include SZSE:300166 SZSE:300738 and TSE:6976. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@ 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
