On Friday (May 17), the three major indexes of the US stock market closed mixed, with the Dow Jones Industrial Average closing above the 40,000 mark for the first time. All three major stock indexes posted their fourth straight weekly gains this week after a series of inflation reports reignited hopes of a Fed rate cut.
The Dow Jones closed up 134.21 points, or 0.33%, at 40,003.59, the S&P 500 closed up 7.78 points, or 0.15%, at 5,304.88, and the Nasdaq Composite closed down 12.36 points, or 0.07%, at 16,685.97.
(Source: FX168)
(Source: FX168)
After its first 5% pullback of the year, the S&P 500 rebounded earlier this week to hit its 23rd new high for 2024. The S&P 500 hovered around 5,300 points, posting its longest weekly gain since February. Strong earnings have also fueled a rally in stocks, and the focus now turns to next Wednesday's earnings from Nvidia — the poster child for the artificial intelligence boom.
Fundstrat's Mark Newton said: "Pausing makes people refresh. "Whether investors choose to stick around and wait for possible consolidation is a tough choice, but I suspect any weakness will be temporary. The bullish is correct, which would make a further rally in the S&P 500 to 5,400 more attractive. ”
Analysts are unanimously bullish
Keith Lerner of Truist Advisory Services said that since the stock market bottomed out during the 2009 financial crisis, after ending 28 previous declines of the same magnitude, the average gain before the next correction was 17.4%, with a minimum gain of 8.5%.
(Source: Bloomberg)
"This suggests that upside potential remains, although a straight line higher is unlikely," he said. "The bull market rule applied until the weight of the evidence changed. That said, investors should stick to the upward trend in the primary market and see the pullback as an opportunity. ”
Citi's strategists, led by Scott Chronert, said Citi's Levkovich index, an inverse measure of traders' attitudes toward stocks, has re-entered optimistic territory. Such a level means that there is a low probability of a positive forward return for the following year.
Deutsche Bank strategists led by Binky Chadha raised the S&P 500's year-end target to 5,500 from 5,100, pointing to a strong earnings cycle and expectations of rising market confidence by the end of the year, which bodes well for U.S. equities.
The strategist wrote: "We think there is enough support for the earnings cycle. "While there may not be all of the growth this year, we are seeing a rise in confidence in the market's continued recovery towards the end of the year."
Mark Haefele of UBS Global Wealth Management believes that the recent rally in the stock market is well supported.
"If inflationary pressures ease more quickly or profit growth is stronger, we think the S&P 500 could reach 5,500 points by the end of the year," he noted.
Analysts raised their earnings forecasts for the quarter at the fastest pace in two years, according to Bloomberg data, suggesting that the worst of the U.S. profit slump may be behind us. Two groups closely linked to the economic cycle – energy and materials – led the upward correction.
Stocks in focus
Shares of GameStation tumbled, with the company saying it could sell up to 45 million Class A shares.
Tesla raised the price of the Model 3 performance again on Friday, increasing the price by $1,000 to $54,990. Previously, the company announced the new Model 3 Performance Edition on April 24, with an initial price of $52,990. Just three days later, Tesla made a price adjustment to the new model, increasing it by $1,000. This is the second increase.
Microsoft Corp. recently announced plans to offer AMD's AI chips through its Azure cloud computing service, a move designed to compete with components made by Nvidia. Microsoft will announce more about this at the Build developer conference.
#头条创作挑战赛#