Latest news with #DarrellCronk
CNBC
a day ago
- Business
- CNBC
Wells Fargo hikes S&P 500 target as U.S. tariffs get delayed again
The U.S. pushing back many of the tariffs announced earlier this year will help Wall Street through the end of the year, according to Wells Fargo. The bank's Investment Institute raised its year-end S & P 500 target range to 6,300-6,500 — putting the midpoint at 6,400. Strategist Darrell Cronk previously expected the benchmark to end 2025 between 5,900 and 6,100. "We believe delayed tariff increases will mitigate this year's U.S. economic growth slowdown and extend the soft patch into early 2026. This should dilute positive impacts from frontloaded tax cuts and deregulation during the first part of next year. We think the protracted tariff implementation will mute and defer the brunt of tariff-related price pressures until later this year and into early 2026," Wells said in a note to clients Friday. President Donald Trump in April unveiled steep charges on imported goods arriving from other countries, but soon after pushed back the implementation of those duties. That helped the S & P 500 recover from a sharp sell-off that nearly tipped the benchmark into a bear market. The index last week hit a fresh record high of 6,481.34. .SPX YTD mountain SPX year to date "Extending tariff implementation over a longer period coupled with the passage of the tax provisions in the [One Big Beautiful Bill] has improved investor sentiment and our forecast for equity earnings and returns," Wells Fargo said. Not everyone is as sanguine on stocks right now. Evercore ISI's Julian Emanuel who, at 5,600, has the lowest S & P target in CNBC's Market Strategist Survey , thinks the benchmark could pull back by anywhere from 7% to 15% from current levels. He said Federal Reserve Chair Jerome Powell's speech this coming Friday at the Jackson Hole symposium could send the market lower if investors leave with less confidence toward central bank rate cuts. "Powell on 8/22 is likely to indirectly signal a 25bp rate cut on 9/17/25 – stressing 50bp is not an option absent Labor market deterioration, and Oct and/or Dec cuts will be 'data dependent.' For a market that was eager to embrace '50 in Sept,' a balanced view could catalyze a near term -7% to -15% pullback into October, within the context of the Structural AI Driven Bull Market," Emanuel said in his weekly note to clients. UBS' wealth management arm also sees potential for "near-term volatility" with the market at current price levels. "Equity valuations are now elevated after a substantial rally in recent months," head of U.S. equities David Lefkowitz wrote. "The economic impact of U.S. tariffs is currently feeding through, with the labor market weakening and inflation rising. Uncertainty remains—regarding the scale, distribution and second-order effects." Still, Lefkowitz expects stocks to be higher a year from now.
Bloomberg
06-08-2025
- Business
- Bloomberg
Single Best Idea: Wilson & Cronk
Tom Keene breaks down the Single Best Idea from the latest edition of Bloomberg Surveillance Radio. In this episode, we feature conversations with Mike Wilson & Darrell Cronk. Watch Tom and Paul LIVE every day on YouTube:
CNBC
09-07-2025
- Business
- CNBC
Wells Fargo's Darrell Cronk: We see one rate cut in 2025 and one in 2026
Darrell Cronk, chief investment officer at Wells Fargo Wealth and Investment Management, and Michael Kantrowitz, chief investment strategist at Piper Sandler, join CNBC's 'The Exchange' to discuss whether the Fed should cut rates, the pressure on the Fed to ease rates, and more.
Yahoo
17-06-2025
- Business
- Yahoo
Wells Fargo Investment Institute: It's Time to Build Resilience and Capitalize on Opportunities
Wells Fargo & Company (NYSE:WFC) is one of the 11 Best Financial Services Stocks to Buy Right Now. The 2025 Midyear Outlook from the Wells Fargo & Company (NYSE:WFC) Investment Institute (WFII), headlined 'Opportunities amid uneven terrain,' has been revealed. A team of bankers in suits, discussing the success of the company's banking products. The report discusses investment ideas for the rest of 2025 and 2026 and responds to substantial regulatory changes in early 2025. Inflation is anticipated to be 3.5% in 2025 and 2.6% in 2026, whereas WFII projects 1.0% GDP growth in 2025 and 1.8% GDP rise in 2026. The target for the S&P Index is set at 6,400-6,600 for 2026 and 5,900-6,100 by the end of the year. The anticipated range of the Fed funds rate in 2025 is 4.00% to 4.25%. Darrell Cronk, chief investment officer, observed that fresh investment opportunities have been created by market volatility after tariff-driven shocks. Wells Fargo & Company (NYSE:WFC)'s WFII forecasts a gentle economic landing, rising stock prices, and steady commodity growth despite global uncertainty. It suggests diversifying with foreign assets and alternatives to manage policy and geopolitical risks while concentrating on quality assets, exposure to AI, and income-producing investments. While we acknowledge the potential of WFC as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 10 High-Growth EV Stocks to Invest In and 13 Best Car Stocks to Buy in 2025. Disclosure. None. 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
Yahoo
12-06-2025
- Business
- Yahoo
Americans' views on inflation are finally turning a corner
Consumers' expectations for inflation dropped in May for the first time in 2025. CPI data has been steadily improving, but sentiment readings have lagged the hard data. Improved consumer sentiment could boost markets and help prevent a recession. Americans are finally starting to feel less anxious about inflation. Consumer price index data showed inflation cooled in May. That comes alongside a brightening of inflation expectations in the latest survey data. This embedded content is not available in your region. The New York Fed's survey of consumer expectations, published on Monday, showed that consumers' forward-looking inflation outlook declined in May for the first time this year. The median one-year-ahead inflation expectation decreased, dropping from 3.6% in April to 3.2%. Three-year-ahead and five-year-ahead inflation expectations also declined, falling from 3.2% to 3.0% and from 2.7% to 2.6%, respectively. The survey marks a turning point in the gap between "soft" and "hard" economic data, with the vibes in the economy starting to more closely align with the facts on the ground. Inflation and labor market data have been looking more and more upbeat, but forward-looking gauges like inflation expectations and consumer sentiment have headed in the opposite direction. Last Friday's jobs report also showed higher-than-anticipated job creation and unemployment levels hovering near historic lows. Yet, May's University of Michigan consumer sentiment reading plunged to from 52.2 to 50.8, the second-lowest reading ever recorded. Wall Street has been more focused on the hard data. May was a strong month for markets as slowing inflation and US-China trade relations led stocks to recover their Liberation Day losses. Recession expectations have come down from 60% to as low as 30% among some forecasters. As stocks continue to gain after April's peak tariff volatility, strategists are also recalibrating their inflation expectations. While inflation could spike later this summer, as it could take three months or more for retailers to pass on tariff-related price increases to consumers, Goldman Sachs believes inflation will only see a temporary uptick from tariffs in 2025 before heading back down in 2026. Now, it seems like consumers are finally getting on the same page. In addition to the improved inflation outlook reported by the New York Fed, the Consumer Confidence Index rebounded, increasing 12.3 points in May to 98.0 — its first increase after falling for five consecutive months. Goldman Sachs said that for past event-driven recessions, soft data has usually bottomed around 60 days after a catalyst. As Liberation Day moves further into the rearview, Americans appear to be adjusting their economic outlooks. Darrell Cronk, chief investment officer of Wells Fargo, echoed this perspective. "What people forget is that sentiment is a reflection of what has happened already, not what will happen in the future," Cronk said during the bank's midyear outlook conference on Tuesday. More optimistic sentiment could be a tailwind for markets, according to Goldman Sachs. Pessimistic consumers have pulled back on spending, especially in discretionary categories like airfare and travel. With consumer spending making up roughly two-thirds of GDP, sentiment improvement could help prevent a recession and boost markets. Read the original article on Business Insider
