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Yahoo
11 minutes ago
- Yahoo
TSX futures subdued as investors await Jackson Hole conference
(Reuters) -Futures tracking Canada's main stock index were flat on Wednesday, as investors await the U.S. Federal Reserve's annual symposium later this week for clues on the monetary policy path. The futures on the S&P/TSX index were down 0.02% as of 06:05 a.m. ET (1005 GMT), while futures tracking Wall Street's benchmark S&P 500 fell 0.1%. Investors avoided outsized bets as they looked ahead to remarks from Fed chair Jerome Powell at the Jackson Hole symposium on Friday that could potentially sway market expectations for future interest rate cuts. Later on Wednesday, expectations for U.S. policy easing will also be tested by the release of minutes from the Fed's last policy meeting, where two officials dissented from the majority "hold" verdict - the first such split since 1993. According to the CME Group's FedWatch tool, traders are pricing in at least two rate cuts by the end of 2025. Ahead of the Fed minutes, gold prices ticked up but hovered near three-week lows. Copper prices remained steady. [GOL/] [MET/L] Oil prices gained over 1% after report of a drop in U.S. crude inventories. [O/R] Canada's new housing price index, due at 08:30 a.m. ET, is the only noteworthy indicator in a data-light day. In corporate news, High Arctic Energy Services on Tuesday announced the resignation of Mike Maguire as CEO. The S&P/TSX composite index fell on Tuesday, dragged by significant declines for technology and mining shares. Tuesday's losses, however, were contained by a cooler domestic inflation report. The data firmed expectations for a Bank of Canada rate cut at the October meeting, with the odds reaching about 60%. FOR CANADIAN MARKETS NEWS, CLICK ON CODES: TSX market report [.TO] Canadian dollar and bonds report [CAD/] [CA/] Reuters global stocks poll for Canada Canadian markets directory ($1 = 1.3878 Canadian dollars)
USA Today
13 minutes ago
- USA Today
US stock futures lower as investors await more earnings, hint of Fed rate cut
U.S. stock futures are lower as investors wait for more big box retail earnings reports and any hints of an imminent Federal Reserve rate cut. Before the opening bell, Minnesota-based retailer Target and home improvement company Lowe's are slated to report quarterly results. Discount giant Walmart is due the next morning. Large retailer earnings can provide a window into how tariffs are affecting companies and consumer spending. Recent retail sales data showed consumers continued to spend last month, but another report signaled waning consumer sentiment and a pick up in inflation worries. At 6:10 a.m. ET, futures tied to the blue-chip Dow fell -0.18%, while broad S&P 500 futures slipped -0.13% and tech-laden Nasdaq futures lost -0.17%. Aside from retailer earnings, investors are looking for any signs the Fed will lower rates at its next policy meeting in September. Minutes from the last policy meeting are due in the afternoon, and investors will get a glimpse into how the discussion over keeping rates unchanged went and what could flip some members towards a rate cut next month. Fed governors Christopher Waller and Michelle Bowman voted against the central bank's decision to keep rates steady between 4.25%-4.50% last month. It was the first time since 1993 that two governors dissented. The main event, though, comes at the end of the week with Fed Chair Jerome Powell's speech at the annual Jackson Hole Economic Symposium of global central bankers and finance chiefs. Investors will be looking for hints Powell may be done waiting to see tariff effects before cutting rates again. Many economists expect Powell to suggest he's open to a rate cut but fall short of signalling one is coming. Nevertheless, the CME FedWatch tool that shows the likelihood that the Fed will change rates at each policy meeting based on market trading suggests an 86.5% chance of the Fed easing rates in September. Corporate news Cryptocurrency Wyoming became the first state to launch a stablecoin. Its stablecoin, the Frontier Stable Token, is designed to offer instant transactions and reduced fees for consumers and businesses. It will be backed by dollars and short-term Treasuries, and available on several blockchains, including Arbitrum, Avalanche, and Ethereum.
Forbes
13 minutes ago
- Forbes
SoundHound AI: SOUN Stock To $2?
SoundHound AI (NASDAQ: SOUN), a voice AI platform that helps businesses deliver conversational AI experiences, has certainly attracted investor interest with its AI-led growth narrative. However, the stock's history of sharp swings and recent market setup point to meaningful downside risk. The recent 10% drop on August 19, as investors took profits across growth names, underscores SOUN's sensitivity to shifts in market sentiment. Now, if you prefer upside potential with less volatility than owning a single stock, consider the High Quality Portfolio, which has comfortably outperformed its benchmark—a combination of the S&P 500, Russell, and S&P midcap index—and has delivered returns exceeding 91% since inception. Also see – GE Stock To $500? Extreme Historical Volatility SoundHound's history shows a pattern of severe drawdowns during periods of market stress. Prior episodes offer a sober reference point for investors: This volatility reflects SOUN's profile as a high-beta growth name. With a beta near 3, SoundHound tends to move more than three times the broader market in both directions. See – Buy or Fear SOUN Stock? Fundamental Concerns Mounting Several fundamental pressures could deepen the downside: Market Structure Risks Structural dynamics could accelerate downside moves: Recession Scenario Impact A broader downturn could pressure key customer segments: The Path to $2 A 90% slide from recent peaks of about $20 implies a price near $2 per share. While extreme, similar moves have occurred. A deep recession could spark widespread de-risking, hitting high-beta growth stocks hardest. Earnings disappointments—missing revenue targets or pushing out profitability—can quickly erode confidence and prompt institutional selling. Heightened competition from large tech companies could also threaten SoundHound's positioning and growth outlook. If sentiment shifts away from AI and growth toward defensive sectors, SOUN's high-volatility profile leaves it exposed. Finally, in a liquidity crunch, institutions often sell their most volatile holdings first—stocks like SOUN can bear the brunt. The Verdict SoundHound AI operates in an attractive market, but its shares carry exceptional downside risk. The mix of extreme volatility, unproven profitability, and sentiment sensitivity creates conditions for severe drawdowns. History shows SOUN can fall 90% during market stress—a pattern that could recur if economic or sector headwinds build. This analysis zeroes in on downside risk and complements our separate assessment of upside drivers. For investors, position sizing and risk controls are essential with such high-volatility profiles. We apply a risk framework when constructing the Trefis High Quality (HQ) Portfolio, which, with a collection of 30 stocks, has a track record of comfortably outperforming the S&P 500 over the last 4-year period. Why is that? As a group, HQ Portfolio stocks have delivered better returns with less risk versus the benchmark—less of a roller-coaster ride—as shown in HQ Portfolio performance metrics.
