A well-known Brokerage predicts that the S&P 500 Index will reach its peak in early 2025, followed by a decline.
Stifel expects that the S&P 500 Index will peak in the first half of 2025 and fall by 10% to 15% in the second half. The Brokerage stated on Thursday (December 12) that a slowdown in economic growth and stubborn inflation are the main concerns.
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As of the market close on December 11, the S&P 500 Index has risen by 27% year-to-date, surpassing 6,000 points; the Nasdaq Composite Index has accumulated a rise of over 33%, reaching a milestone of 0.02 million points, exceeding market expectations.
Be careful! December may be the last interest rate cut by the Federal Reserve.
The market still expects two to three rate cuts in 2025, which may be overly optimistic.
Almost 100%! Wall Street is convinced that the Federal Reserve will definitely cut interest rates next week.
Analysis suggests that the Federal Reserve will not deviate from the path of interest rate cuts in December, and there is reason to remain optimistic about the downward trend in inflation, with the most stubborn housing inflation normalizing, and seasonal factors possibly fading in the inflation reports over the coming months.
From the perspective of Fed Governor Waller, CPI indicates that inflation is moving in the wrong direction.
According to the so-called Waller rule, the breadth of inflation is increasing.
Egg prices have skyrocketed! The USA's PPI in November recorded the largest increase since the beginning of 2023.
Food costs drove the PPI in November to the largest increase in five months; portfolio management fees decreased, and air ticket prices indicate that the PCE Index may tend to weaken.
The Bonds market has fallen into a "guessing game": what is the Federal Reserve's interest rate anchor?
Due to the diversity in estimating the neutral interest rate, the market has a wide range of opinions regarding the outlook of the Federal Reserve's monetary policy, and the bond market often experiences sharp fluctuations after each release of economic data. When this month's non-farm payroll report was released, the volatility of the two-year US Treasury yield was on average six times larger than before 2022.
U.S. stock market morning | The three major indexes weakened slightly, Adobe fell over 12% after earnings; popular China Concept Stocks rose against the trend, with MINISO up more than 5%.
On the evening of December 12, Peking time, US stocks opened mixed on Thursday. Adobe's Earnings Reports were disappointing, leading to a sharp decline in stock price. The number of people applying for unemployment benefits in the USA unexpectedly increased last week, and the PPI for November rose more than expected. The European Central Bank cut interest rates for the fourth time this year.
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Express News | The three major US Indexes opened mixed, with Adobe falling over 11% after earnings.
Express News | US Weekly Initial Jobless Claims 242000 Vs 220000 Forecast, Prior 225000
Express News | US November PPI YoY +3.0% Vs +2.6% Forecast, Prior +2.4%
US stock market outlook | The three major futures indices show slight weakness, with both PPI and initial jobless claims data exceeding expectations; poor earnings guidance leads to Adobe dropping over 10% in pre-market trading.
Central Economic Work Conference: Implement more proactive and effective macro policies to expand domestic demand; not swayed by CPI, the U.S. bond market is more concerned with employment data; The Kroger rose more than 2.4% in pre-market trading and announced it would repurchase 7.5 billion dollars in stocks after the merger deal with Albertsons Companies fell through.
4 ETF Areas Hit One-Year High Amid In-Line November Inflation
"Wall Street's smart money" becomes cautious: beware of a decline in the U.S. stock market in the second half of next year!
A well-known Wall Street bull pointed out that the historical precedent of the U.S. stock market achieving a continuous 20% annual return suggests that the performance of U.S. stocks may be worse in the second half of next year.
U.S. Stock Outlook | All three Equity Indices are declining, as the market focuses on PPI data.
On December 12th (Thursday) in Pre-Market Trading, the three major US Equity Index futures fell altogether.
Daily Options tracking | Google surged for two consecutive days! The highest increase for call options was nearly 14 times; Tesla's stock price reached an all-time high, and Options trading continued to be explosive.
NVIDIA rose over 3%, with Options trading on that day reaching 3.1893 million contracts, and the proportion of Call Options has been increasing for several days, currently at 68.5%. Among these, the Call Options with a strike price of $140 expiring on December 13 had the highest Volume, with 0.269 million contracts traded.
The worst start to a new fiscal year! The budget deficit in the USA is soaring.
Government spending in the USA has surged, and Musk's government efficiency department is expected to accomplish great things, but any cuts to spending could provoke resistance...
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Unexpectedly turned a profit, GameStop's performance exceeded Wall Street expectations, soaring over 7% after the announcement; semiconductor materials and equipment company Astera reached a new high, with an increase of 240% since going public this year.
Wall Street's major bulls: S&P 500 will rise then fall next year, with a maximum increase of up to 16%.
FX168 Financial News Agency (North America) reports that Fundstrat holds an optimistic outlook for the stock market in 2025, but its predictions are not as optimistic as in previous years.