U.S. Economic Growth Up, Fed Rate Cuts Coming Later

Stocks Rally On Weaker PMI Data, Tech Earnings Optimism, Dollar Falls: What's Driving Markets Tuesday?

The S&P 500 rose 1.2% in midday trading on Tuesday, its best performance in over a month. The Nasdaq 100 outperformed the broader market, up 1.5%. Economic data indicated a deceleration in private sector growth in April. Fears for a potential Federal Reserve rate cut by the end of the summer jumped to 72% from 67% on Monday.

Gold And Bitcoin Rallies Vs. U.S. Dollar Strength

The Next Fed Meeting And The Potential Impact On 2024 Equity Returns

Federal Reserve's upcoming FOMC meeting will have a significant impact on the equity market and stock prices. I don't expect an interest rate cut at the meeting and see a possibility for higher 10-year rates in the next 1-2 years. I see a gloomy return profile for the S&P 500 index in 2024.

20 companies screened for quality in a cheap part of the stock market

The 'Mag Seven' Components Take Big Hits As Boring May Becoming Beautiful

Friday’s trade makes you wonder if the game is not over for the ‘Magnificent Seven’ The bulletproof case may be unwinding for Big Tech. The market seems to be getting comfortable with the Fed message of “higher for longer” Big Tech has become a parking lot for those seeking growth without economic sensitivity.

The Myth Of Small-Cap Outperformance

Small-cap stocks may not reliably generate superior returns compared to large-cap companies. Over a 23-year period, small-caps only outperformed large-caps by a negligible margin. The size factor may even be detrimental to portfolios. Small-caps may underperform during bear markets and outperform during bull markets.

Why AI Stocks Could Go Boom

The S&P 500 Index is experiencing a correction, with a potential 10% pullback to around the 4,800 level. Yet, the bottom is likely near. High-quality AI-related stocks have corrected significantly, providing a buying opportunity for the next move higher. The Fed will likely cut rates soon, which is a constructive dynamic for stocks.

Stocks Set To Snap Worst Losing Streak In Nearly 2 Years, Gold Sinks, Bitcoin Reclaims $66,000: What's Driving Markets Monday?

Major U.S. Stocks are poised to break a six-day losing streak. At noon trading in New York on Monday, major indices all traded higher. Easing geopolitical tensions in the Middle East bolstered market sentiment. Gold plunged 2.5% to $2,330 per ounce, while silver tumbled 5%. Bitcoin rose above $66,000, on track for its highest close in a week.

See Which Of The Latest 13F Filers Holds IWM

Higher Bar For U.S. Earnings To Deliver

U.S. Stocks have slid from their highs as inflation proves sticky and geopolitical tensions rise. We eye whether corporate earnings can keep buoying sentiment. The bar is higher for tech firms to deliver on high earnings expectations. We see inflation and interest rates staying higher for longer. We still prefer artificial intelligence (AI) beneficiaries.

SocGen says short small-cap stocks as they look vulnerable to spike in bond yields

Societe Generale says short small-cap stocks as they look vulnerable to spike in bond yields. The selloff in bonds last week pushed the 10-year yield to 4.7% for the first time in October. SocGen says small caps are still sensitive to bond moves as earnings growth stagnates.

Notable ETF Outflow Detected - IWM, SMCI, MSTR, FIX

Weekly Report: what happened at IWM last week (0415-0419)?

S&P 500: Capitulation? Week Starting 22nd April (Technical Analysis)

The S&P 500 has broken supports, suggesting a large correction targeting an undercut of 4818 is underway. The Israel/Iran conflict continued lower on Thursday and Friday. The drop has reached the 20-week MA for the S&p500. Is the correction a short-term capitulation or a bounce? This weekend's article will look at the probable paths for the remainder of the correction. Did the Israel attack on Iran make a capitulation bottom?

IWO: Unconvincing Small Cap Growth ETF

IShares Russell 2000 Growth ETF (IWO) holds 1000+ stocks of the Russell 2000 Index with relative high growth and valuation metrics. The fund is a direct competitor to the parent index Russell 2000 and tracks the same index. IWO has underperformed competitors over the last 8 years. The portfolio is well diversified across sectors and holdings.

Powell Playing Games: 'Sell In May' Is Now 'Sell Before May'

The S&P 500 has fallen over 5% from its peak. The Fed strategically hints at certain actions to gauge market reactions and buy time. The Middle East situation introduces big uncertainty and a visible flight to safety. We could be looking at the beginning of a supercycle in commodities.

Hoisington Investment Management Q1 2024 Review And Outlook

Negative Net National Saving can no longer fully capture the harmful effect of debt on economic growth. The Federal Reserve is on the path to reducing inflation to the policy objective, says Hoisington Investment Management. The Fed's actions would not boost the rate of growth in real GDP.

This Week's GDP And PCE Reports May Bring More Pain To The Market

This week's GDP And PCE Reports May Bring More Pain To The Market. First quarter GDP and March PCE reports could lead to higher rates, a stronger dollar, and a decline in the stock market. Anecdotal evidence suggests that the estimates for GDP and PCE may be too low, indicating potential upside surprises.

Weekly Indicators: Industrial Commodity Prices Spike To 12-Month High

Long leading indicators remain unchanged, with interest rates and credit spreads improving. Short leading indicators show some improvement, particularly in commodities and the US dollar. Industrial production and retail sales rose sharply in nominal terms in March. Inflation and real consumer spending remain stable. Industrial Commodity Prices Spike To 12-Month High.