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Economic Times
8 hours ago
- Business
- Economic Times
Markets on edge as Evercore warns - Powell's Jackson Hole speech could spark a shocking 15% plunge
Jerome Powell will speak at Jackson Hole, and Evercore warns his Fed rate cut signals could affect markets. Investors hoped for bigger cuts, so stocks may drop 7–15%. Mixed inflation and jobs data and high stock prices increase risks. Experts suggest safe investing in tech, AI, and healthcare stocks to prepare for possible market changes. Tired of too many ads? Remove Ads Inflation and jobs data confuse markets Tired of too many ads? Remove Ads Stock market risks and Evercore's advice Hold a core portfolio of 'AI Enablers, Adopters, and Adapters' in tech, consumer, and communication sectors. Examples: Amazon (AMZN), Alphabet (GOOG), Micron (MU). Add healthcare stocks with good earnings revisions, like Pfizer (PFE) and Cigna (CI). Fund these buys by selling expensive stocks with weaker outlooks, such as Palantir (PLTR), Tesla (TSLA), and MicroStrategy (MSTR). FAQs U.S. federal reserve chair Jerome Powell is expected to signal a drop of 25 basis points during his expected speech at the annual Jackson Hole meeting of the who's who of central bankers on Friday in Wyoming. Analysts at Julian Emanuel led Evercore ISI say the indication of the drop in rate could be the precursor to the real announcement during the Fed's mid-September wanted a 50 basis point cut (half a percent). Evercore warned that Powell's 'balanced view' could trigger a 7% to 15% market drop by October. Economic Outlook Looks Unclear – Evercore said both parts of the Fed's job – controlling inflation and keeping jobs strong – look 'muddled', as reported by Consumer Price Index rose less than expected, but wholesale prices increased faster than forecast. Jobs Market Data Also Mixed – Weekly jobless claims stayed steady this year. But U.S. job growth slowed to its weakest 3-month pace since 2010 (excluding the pandemic shock). Back in 2010, the unemployment rate was 9%, double today's Donald Trump has criticized Powell since returning to the White House in January. He wants the Fed to cut rates more deeply. Trump's Move Sparks Worries – In early August, Trump fired the Bureau of Labor Statistics chief after a weak jobs report. Economists fear this could lead to political interference in economic data, as per the noted that high stock prices and seasonal weakness are dangers. September is historically the worst month for stocks, even after strong rallies. Wall Street Rally Context – Stocks have been lifted by trade deals and strong earnings, but valuations are now close to the Dotcom Bubble made clear that Powell's speech could be a turning point: if markets don't like what they hear, a sharp 15% drop could hit by October, as stated by is expected to signal a 25 basis point rate cut at the Fed's September Evercore warns that markets could fall 7% to 15% by October if investors don't like his message.
Time of India
9 hours ago
- Business
- Time of India
Markets on edge as Evercore warns - Powell's Jackson Hole speech could spark a shocking 15% plunge
Inflation and jobs data confuse markets Live Events Stock market risks and Evercore's advice Hold a core portfolio of 'AI Enablers, Adopters, and Adapters' in tech, consumer, and communication sectors. Examples: Amazon (AMZN), Alphabet (GOOG), Micron (MU). Add healthcare stocks with good earnings revisions, like Pfizer (PFE) and Cigna (CI). Fund these buys by selling expensive stocks with weaker outlooks, such as Palantir (PLTR), Tesla (TSLA), and MicroStrategy (MSTR). FAQs (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel U.S. federal reserve chair Jerome Powell is expected to signal a drop of 25 basis points during his expected speech at the annual Jackson Hole meeting of the who's who of central bankers on Friday in Wyoming. Analysts at Julian Emanuel led Evercore ISI say the indication of the drop in rate could be the precursor to the real announcement during the Fed's mid-September wanted a 50 basis point cut (half a percent). Evercore warned that Powell's 'balanced view' could trigger a 7% to 15% market drop by October. Economic Outlook Looks Unclear – Evercore said both parts of the Fed's job – controlling inflation and keeping jobs strong – look 'muddled', as reported by Consumer Price Index rose less than expected, but wholesale prices increased faster than forecast. Jobs Market Data Also Mixed – Weekly jobless claims stayed steady this year. But U.S. job growth slowed to its weakest 3-month pace since 2010 (excluding the pandemic shock). Back in 2010, the unemployment rate was 9%, double today's Donald Trump has criticized Powell since returning to the White House in January. He wants the Fed to cut rates more deeply. Trump's Move Sparks Worries – In early August, Trump fired the Bureau of Labor Statistics chief after a weak jobs report. Economists fear this could lead to political interference in economic data, as per the noted that high stock prices and seasonal weakness are dangers. September is historically the worst month for stocks, even after strong rallies. Wall Street Rally Context – Stocks have been lifted by trade deals and strong earnings, but valuations are now close to the Dotcom Bubble made clear that Powell's speech could be a turning point: if markets don't like what they hear, a sharp 15% drop could hit by October, as stated by is expected to signal a 25 basis point rate cut at the Fed's September Evercore warns that markets could fall 7% to 15% by October if investors don't like his message.
Yahoo
16 hours ago
- Business
- Yahoo
Fed Chair Powell's Jackson Hole Speech Could Jolt Markets: Evercore Warns of 15% Drop
Key Takeaways With economic data sending mixed signals and stock valuations at historic highs, Wall Street could be headed for a rough patch, according to analysts at Evercore ISI. Evercore analysts argued in a note on Sunday that Fed Chair Jerome Powell's speech at Jackson Hole, scheduled for Friday, could prompt stocks to retreat as much as 15%. Evercore recommends owning a core portfolio of AI enablers and adopters for the long term, supplemented by attractively valued stocks with strong earnings outlooks. Federal Reserve Chair Jerome Powell is slated to speak on Friday at the Fed's annual gathering of central bankers in Jackson Hole, Wyoming, and Evercore ISI warns that market participants might not love what he has to say. Powell 'is likely to indirectly signal a 25bp rate cut' at the Fed's next policy meeting in mid-September, argued Evercore analysts led by Julian Emanuel in a note on Sunday. 'For a market that was eager to embrace '50 in Sept,'' referring to market chatter about the likelihood officials would cut rates by 50 basis points, or half a percentage point, next month, 'a balanced view could catalyze a near term -7% to -15% pullback into October.' The Economic Outlook Is 'Muddled' 'The stakes … are high with both sides of the Dual Mandate muddled,' the analysts wrote, referring to the Fed's job of balancing stable prices and maximum employment. Inflation data last week painted a muddy picture of how tariffs are affecting prices; the Consumer Price Index rose less than expected in July, while wholesale prices climbed much faster than forecast. Labor market data is not much clearer. Weekly initial unemployment claims have held steady this year. Meanwhile, job growth has fallen to its slowest 3-month pace (outside of the pandemic shock) since 2010, when the unemployment rate was about 9%, double what it is today. President Donald Trump is adding to the uncertainty. Since returning to the White House in January, Trump has repeatedly criticized Powell, whom he appointed in 2019, and called on the Fed to lower rates. In early August, Trump fired the head of the Bureau of Labor Statistics after a disappointing jobs report, alarming some economists concerned that political interference could skew official economic data. How to Weather an Autumn Fall High stock prices and seasonal weakness are additional causes for concern, says Evercore. 'Pedal to the metal equity market bullishness in August typically runs into the realities of September,' which is historically the worst month of the year for stocks, the analysts wrote. And Wall Street's post-'Liberation Day' rally, fueled by trade deals and resilient corporate earnings, has stock valuations near their highest levels since the Dotcom Bubble. Against that backdrop, Evercore recommends investors hold a core portfolio of 'AI Enablers, Adopters and Adapters' in the communication services, consumer discretionary, and tech sectors. Big names in the category include Amazon (AMZN), Alphabet (GOOG), and Micron (MU). They recommend supplementing those core holdings with attractively priced stocks with positive earnings revisions. They note healthcare companies, including Pfizer (PFE) and Cigna (CI), are overrepresented in the list of stocks that meet these criteria. They suggest funding those purchases by selling pricey stocks with less attractive earnings outlooks, including retail investor favorites like Palantir (PLTR), Tesla (TSLA), and Strategy (MSTR). Read the original article on Investopedia
CNBC
25-07-2025
- Business
- CNBC
The breakout in this utilities ETF has room to run, says Carter Worth
(Check out Carter's for actionable recommendations and live nightly videos.) Utilities, as all will know, generally lag the market over time. See first chart below. On a total return basis, however (with dividends reinvested) utilities – with their higher yields – have matched the performance of the market the past 25 years. See second chart below. And here and now, utilities as a group are just now breaking out to new 52-week highs and all-time highs. We think it is right to be overweight utilities at this juncture. Since the Dotcom Bubble peak in March of 2000 to present, the S & P 500 Index almost doubled the performance of the S & P 500 Utilities sector. Since the peak in March of 2000 to present, the S & P 500 Utilities sector's total return (dividends reinvested) has matched the S & P 500 Index total return (dividends reinvested). 25 years has equaled even money. Utilities just now are moving above their former highs registered in November of last year. The tentative breakout underway is judged to have room to run. Buy here for a prospective move to the $88+/- level. DISCLOSURES: (None) All opinions expressed by the CNBC Pro contributors are solely their opinions and do not reflect the opinions of CNBC, NBC UNIVERSAL, their parent company or affiliates, and may have been previously disseminated by them on television, radio, internet or another medium. THE ABOVE CONTENT IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY . THIS CONTENT IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSITUTE FINANCIAL, INVESTMENT, TAX OR LEGAL ADVICE OR A RECOMMENDATION TO BUY ANY SECURITY OR OTHER FINANCIAL ASSET. THE CONTENT IS GENERAL IN NATURE AND DOES NOT REFLECT ANY INDIVIDUAL'S UNIQUE PERSONAL CIRCUMSTANCES. THE ABOVE CONTENT MIGHT NOT BE SUITABLE FOR YOUR PARTICULAR CIRCUMSTANCES. BEFORE MAKING ANY FINANCIAL DECISIONS, YOU SHOULD STRONGLY CONSIDER SEEKING ADVICE FROM YOUR OWN FINANCIAL OR INVESTMENT ADVISOR. Click here for the full disclaimer.
Yahoo
27-03-2025
- Business
- Yahoo
It's Been 25 Years Since the Dotcom Bubble Burst. Here Are the Stocks You Wish You'd Bought
According to a recent analysis from Bespoke Investment Group, Monster Beverage has been the best-performing stock in the Russell 1000 since the Dotcom Bubble burst exactly 25 years ago. Nvidia and Apple are also on the list of stocks that have risen 10,000% since March 2000, but they're among the only tech stocks to gain that much. Since the Covid-19 crash bottomed 5 years ago, energy stocks have been among the market's best been 25 years since the Dotcom Bubble burst, and in honor of that milestone, Bespoke Investment Group has put together a list of some of the best-performing stocks of the past quarter century. Some of them have posted astounding results. According to Bespoke, a little over half of the stocks in the Russell 1000 today were around 25 years ago. Those that were have posted an average gain of more than 2,600% since the Dotcom Bubble peaked. Nearly 300 of those stocks have been 10-baggers—i.e., they've gone up 10x, or 1,000%. And 19 have been 100-baggers, meaning they've risen by 10,000%, in the last 25 years. It might be reasonable to assume that the best-performing stocks of the last quarter century are mostly tech stocks. After all, eight of America's 10 most valuable companies are either in the tech sector or are tech-driven media and consumer companies. However, the best-performing Russell 1000 stock since March 24, 2000, has been energy-drink maker Monster Beverage (MNST). Monster shares have risen 127,477% in the last 25 years; Nvidia (NVDA), the runner-up, has gained 66,004%, according to Bespoke. A $1,000 investment in Monster in March 2000 would now be worth $1,275,770, compared with an Nvidia stake worth $661,038. Nvidia and Apple (AAPL) are the only big tech 100-baggers, though that's partly because nearly half of the Magnificent Seven weren't public until after 2000. Meta (META), Alphabet (GOOG), and Tesla (TSLA) shares have risen about 1,300%, 6,800%, and 22,000%, respectively, since their IPOs. Rounding out the top five 100-baggers are Texas Pacific Land (TPL), which owns and leases oilfields in the Permian Basin; Deckers Outdoor (DECK), the maker of UGG, Hoka, and Teva footwear; and Old Dominion Freight Line (ODFL), a freight provider. A $1,000 investment in those companies on March 24, 2000, would now be worth about $626,000, $530,000, and $305,000 respectively. Farm equipment retailer Tractor Supply Co. (TSCO), and auto parts retailers O'Reilly Automotive (ORLY) and Autozone (AZO) are on the list of 100-baggers. The only tech stocks to join Nvidia and Apple on the list are Fair Isaac (FICO), the creator of the FICO credit score, and ANSYS (ANSS), which develops engineering modeling software. This March isn't just a major Dotdom Bubble anniversary; it's also the fifth anniversary of the Covid-19 crash, which bottomed out on March 23, 2020. Since that day, energy stocks have been among the Russell 1000's biggest gainers, accounting for 4 of the 5 best performers. The only non-energy stock to crack the top 5 is Bitcoin-proxy Strategy (MSTR), formerly MicroStrategy. Also among the 25 best-performing stocks of the last 5 years are meme stock GameStop (GME), up about 2,500%; and AI favorites Super Micro Computer (SMCI) and Vistra (VST), up 2,400% and 1,000%, respectively. Read the original article on Investopedia
