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Globe and Mail
13-07-2025
- Business
- Globe and Mail
10 Stock Splits Investors Could See Happen in 2026
Key Points Stock splits are common among companies in the Dow Jones Industrial Average. Most companies tend to split their stock when the share price exceeds approximately $1,000. 10 stocks we like better than Microsoft › Stock splits are less common than they used to be, as fractional shares have negated their effect. However, fractional shares aren't available to every investor, especially outside the U.S. Still, stock splits have their uses, namely for employee compensation. Stock splits can still be exciting for investors and may sometimes cause a stock to surge. With a few potential splits expected next year, now may be a great time to acquire these stocks that are ripe for a split. Microsoft Microsoft (NASDAQ: MSFT) may not appear to be a top stock-split candidate, but it might be compelled to split its stock. Although its share price is roughly $500, which isn't at a level you'd expect from a stock split, it is a member of the Dow Jones Industrial Average, a price-weighted index. This means that the index is weighted by a stock's price rather than by the company's size. Currently, Microsoft is the second most expensive stock in the index, and it may be forced to split its stock to stay in the index. Otherwise, it could throw the index out of balance. As a result, investors shouldn't be surprised if Microsoft splits its stock next year. Goldman Sachs Goldman Sachs (NYSE: GS) is also a member of the Dow Jones Industrial Average, but it holds the title of the most expensive stock in the index, trading for more than $700. Like Microsoft, it may split its stock next year, making it a smaller component of the widely used index. Meta Platforms Meta Platforms (NASDAQ: META) could be vying for a position within the Dow as the index transitions from older manufacturing companies to newer AI-focused ones. This represents the broader shift in the American economy, so the inclusion of a company like Meta makes sense. With the stock currently trading at around $725 per share, it's a stock that could potentially undergo a split next year. Berkshire Hathaway It's unlikely that you'll see a Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) Class A share split, given that the stock price is currently more than $700,000 per share. However, Warren Buffett is retiring at the end of the year, and with a new CEO at the helm, you never know what might happen. The B-class shares, which are significantly more affordable at $477 per share, could be a candidate for a stock split next year. Berkshire Hathaway is a world-renowned company, and maintaining affordable access to its shares is likely a key point for management. Costco Costco Wholesale (NASDAQ: COST) experienced an impressive stock run over the past decade, with its stock price exceeding $1,000 per share, although it's currently slightly below that mark. Once a company reaches $1,000 per share, it lands on investors' radar as a stock-split candidate, so don't be surprised if you see Costco announce a stock split sometime in 2026. Netflix Netflix (NASDAQ: NFLX) is in a similar boat to Costco but at an even more expensive level. Its shares trade for around $1,250, which is quite expensive for a tech stock. Many tech companies use stock options to compensate employees, which would be a very expensive bonus to hand out from Netflix, given the high price of their stock. As a result, I think it could split its stock in 2026. ASML ASML (NASDAQ: ASML) currently trades for approximately $800, but its 52-week high was over $1,100. This critical semiconductor manufacturing equipment supplier is poised for strong growth over the next few years as chip production capacity increases, and the company may consider splitting its stock in anticipation of further market run-up. ServiceNow ServiceNow (NYSE: NOW) trades for around $1,000 and is benefiting from the integration of AI into business. The stock has been on a remarkable run over the past few years, and it could see its shares rise even further, making it a potential candidate for a stock split. Fair Isaac Corporation Fair Isaac Corporation (NYSE: FICO), better known as FICO, is the company behind credit card scores. Its stock has been a stellar performer, crushing the market on its way up to more than $1,600 per share. However, it decreased significantly from its 52-week high of $2,400. Still, given the stock's high price, don't be surprised if it announces a split next year. MercadoLibre MercadoLibre (NASDAQ: MELI) is a Latin American e-commerce and fintech giant. It has built a massive empire in Latin America and continues to expand rapidly. Its run has taken it to a $2,400 per share stock price, and it could be a company that's ripe for a stock split in 2026. Even if none of the companies on this list fail to split their stock, some of them appear to be strong investment candidates. Although an impending stock split could be a part of the investment thesis, there should be a compelling investment case for each company beyond a stock split. Should you invest $1,000 in Microsoft right now? Before you buy stock in Microsoft, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Microsoft wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $671,477!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,010,880!* Now, it's worth noting Stock Advisor 's total average return is1,047% — a market-crushing outperformance compared to180%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 7, 2025 Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Keithen Drury has positions in ASML, MercadoLibre, and Meta Platforms. The Motley Fool has positions in and recommends ASML, Berkshire Hathaway, Costco Wholesale, Goldman Sachs Group, MercadoLibre, Meta Platforms, Microsoft, Netflix, and ServiceNow. The Motley Fool recommends Fair Isaac and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
Yahoo
13-07-2025
- Business
- Yahoo
10 Stock Splits Investors Could See Happen in 2026
Stock splits are common among companies in the Dow Jones Industrial Average. Most companies tend to split their stock when the share price exceeds approximately $1,000. 10 stocks we like better than Microsoft › Stock splits are less common than they used to be, as fractional shares have negated their effect. However, fractional shares aren't available to every investor, especially outside the U.S. Still, stock splits have their uses, namely for employee compensation. Stock splits can still be exciting for investors and may sometimes cause a stock to surge. With a few potential splits expected next year, now may be a great time to acquire these stocks that are ripe for a split. Microsoft (NASDAQ: MSFT) may not appear to be a top stock-split candidate, but it might be compelled to split its stock. Although its share price is roughly $500, which isn't at a level you'd expect from a stock split, it is a member of the Dow Jones Industrial Average, a price-weighted index. This means that the index is weighted by a stock's price rather than by the company's size. Currently, Microsoft is the second most expensive stock in the index, and it may be forced to split its stock to stay in the index. Otherwise, it could throw the index out of balance. As a result, investors shouldn't be surprised if Microsoft splits its stock next year. Goldman Sachs (NYSE: GS) is also a member of the Dow Jones Industrial Average, but it holds the title of the most expensive stock in the index, trading for more than $700. Like Microsoft, it may split its stock next year, making it a smaller component of the widely used index. Meta Platforms (NASDAQ: META) could be vying for a position within the Dow as the index transitions from older manufacturing companies to newer AI-focused ones. This represents the broader shift in the American economy, so the inclusion of a company like Meta makes sense. With the stock currently trading at around $725 per share, it's a stock that could potentially undergo a split next year. It's unlikely that you'll see a Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) Class A share split, given that the stock price is currently more than $700,000 per share. However, Warren Buffett is retiring at the end of the year, and with a new CEO at the helm, you never know what might happen. The B-class shares, which are significantly more affordable at $477 per share, could be a candidate for a stock split next year. Berkshire Hathaway is a world-renowned company, and maintaining affordable access to its shares is likely a key point for management. Costco Wholesale (NASDAQ: COST) experienced an impressive stock run over the past decade, with its stock price exceeding $1,000 per share, although it's currently slightly below that mark. Once a company reaches $1,000 per share, it lands on investors' radar as a stock-split candidate, so don't be surprised if you see Costco announce a stock split sometime in 2026. Netflix (NASDAQ: NFLX) is in a similar boat to Costco but at an even more expensive level. Its shares trade for around $1,250, which is quite expensive for a tech stock. Many tech companies use stock options to compensate employees, which would be a very expensive bonus to hand out from Netflix, given the high price of their stock. As a result, I think it could split its stock in 2026. ASML (NASDAQ: ASML) currently trades for approximately $800, but its 52-week high was over $1,100. This critical semiconductor manufacturing equipment supplier is poised for strong growth over the next few years as chip production capacity increases, and the company may consider splitting its stock in anticipation of further market run-up. ServiceNow (NYSE: NOW) trades for around $1,000 and is benefiting from the integration of AI into business. The stock has been on a remarkable run over the past few years, and it could see its shares rise even further, making it a potential candidate for a stock split. Fair Isaac Corporation (NYSE: FICO), better known as FICO, is the company behind credit card scores. Its stock has been a stellar performer, crushing the market on its way up to more than $1,600 per share. However, it decreased significantly from its 52-week high of $2,400. Still, given the stock's high price, don't be surprised if it announces a split next year. MercadoLibre (NASDAQ: MELI) is a Latin American e-commerce and fintech giant. It has built a massive empire in Latin America and continues to expand rapidly. Its run has taken it to a $2,400 per share stock price, and it could be a company that's ripe for a stock split in 2026. Even if none of the companies on this list fail to split their stock, some of them appear to be strong investment candidates. Although an impending stock split could be a part of the investment thesis, there should be a compelling investment case for each company beyond a stock split. Before you buy stock in Microsoft, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Microsoft wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $671,477!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,010,880!* Now, it's worth noting Stock Advisor's total average return is 1,047% — a market-crushing outperformance compared to 180% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of July 7, 2025 Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Keithen Drury has positions in ASML, MercadoLibre, and Meta Platforms. The Motley Fool has positions in and recommends ASML, Berkshire Hathaway, Costco Wholesale, Goldman Sachs Group, MercadoLibre, Meta Platforms, Microsoft, Netflix, and ServiceNow. The Motley Fool recommends Fair Isaac and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy. 10 Stock Splits Investors Could See Happen in 2026 was originally published by The Motley Fool
Yahoo
28-05-2025
- Business
- Yahoo
Stock Market News for May 28, 2025
Wall Street closed sharply higher on Tuesday, driven by tech and discretionary stocks. Investor mood was upbeat on President Trump backtracking from the major tariff hike he had suggested on European goods. All three benchmark indexes closed the session in the green. The Dow Jones Industrial Average (DJI) jumped 1.8%, or 740.58 points, to close at 42,343.65. Twenty-eight components of the 30-stock index ended in positive territory, while two ended in negative. The tech-heavy Nasdaq Composite gained 461.96 points, or 2.5%, to close at 19,199.96. The S&P 500 added 118.72 points, or 2.1%, to close at 5,921.54. All 11 broad sectors of the benchmark index closed in the green. The Consumer Discretionary Select Sector SPDR (XLY), the Technology Select Sector SPDR (XLK), the Financials Select Sector SPDR (XLF) and the Industrials Select Sector SPDR (XLI) advanced 3%, 2.4%, 1.8% and 1.8%, respectively. The fear-gauge CBOE Volatility Index (VIX) decreased 7.8% to 18.96. A total of 16.98 billion shares were traded on Tuesday, lower than the last 20-session average of 17.72 billion. Advancers outnumbered decliners by a 5.42-to-1 ratio on the NYSE, while on the Nasdaq, advancing issues led by 2.54:1. Over the past weekend, President Donald Trump decided to postpone the 50% tariff he had proposed on European Union imports, which had been scheduled to take effect on June 1. Following a phone conversation with European Commission President Ursula von der Leyen, during which both leaders agreed to intensify trade negotiations, the new deadline for the potential tariff imposition has been moved to July 9. The announcement of the delay had an immediate positive impact on financial markets. On Tuesday, the S&P 500 marked its strongest gain since May 12, as investors' fears of an escalating trade conflict diminished. Brussels is advocating for the elimination or prevention of increased U.S. tariffs on EU goods, particularly steel and automobiles, and has proposed a reciprocal reduction to zero tariffs on industrial goods, along with increased EU purchases of American products. However, despite the temporary reprieve, the underlying trade tensions remain. The Trump White House has expressed dissatisfaction with the trade deficit in goods with the EU and has criticized various EU policies, including the 10% auto import tariff and food safety standards. The EU, while open to negotiations, has indicated that it will not compromise on certain issues, such as hormone-treated beef and genetically modified crops. The coming weeks will be critical in determining whether the United States and the EU can reach a comprehensive trade agreement or if the threatened tariffs will be implemented, potentially leading to a significant escalation in trade tensions. For the time being, the postponement of this tariff imposition comes as a big boost for the markets. Consequently, shares of Broadcom Inc. AVGO and Delta Air Lines, Inc. DAL rose 3% and 3.1%, respectively. Both currently carry a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Richmond Fed President Thomas Barkin, while delivering an economics lecture at Washington and Lee University on Tuesday, emphasized a cautious approach to monetary policy amid persistent inflation and economic uncertainties. He advocated maintaining "modestly restrictive" interest rates until there is clear evidence that inflation is returning to the Fed's 2% target. Barkin highlighted potential upside risks to inflation, including wage pressures and the impact of new trade policies, such as tariffs and immigration changes, which could disrupt supply chains and labor markets. He supports a "wait and see" strategy, preferring to keep rates elevated until there is greater certainty about inflation trends and economic growth. Per the Conference Board, the Consumer Confidence Index in the United States jumped to 98 in May. The number for April was revised down to 85.7 from the previously reported 86. This 14.4% surge in current-month consumer confidence also contributed to the session's rally. Per S&P Global, Case-Shiller Home Prices for the 20-City Composite for March increased 1.1%. The number for February remained unrevised at 0.7%. Prices for the 10-City Composite for March increased 1.2%. The number for February remained unrevised at 0.8%. Per the U.S. Census Bureau, Durable Goods Order for April decreased 6.3%. The number for March was revised down to an increase of 7.6% from the previously reported 9.2%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report Broadcom Inc. (AVGO) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research 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
Time of India
22-04-2025
- Business
- Time of India
US stock markets in bear zone soon? Trump's trade policies, attack on Powell & rising Treasury yields
may officially enter bear territory soon, and that could actually be the least of worries for economists and market participants. The ripple effect of an escalating with China, US President 's sharp attack on the , and the rising are all raising fundamental questions about the US economy. Tired of too many ads? go ad free now US stock markets experienced sharp declines on Monday as Trump intensified his criticism of Federal Reserve Chairman . This heightened concerns amongst investors regarding the central bank's autonomy, whilst they simultaneously dealt with the uncertainty caused by Trump's unpredictable trade policies. The Industrial Average declined by 971.82 points, or 2.48%, closing at 38,170.41, whilst the S&P 500 dropped 124.50 points, or 2.36%, ending at 5,158.20. The Composite fell by 415.55 points, or 2.55%, finishing at 15,870.90. Every major sector within the S&P 500 finished the day lower, with the consumer discretionary and technology sectors recording the most significant percentage declines. According to Reuters, S&P 500 companies are projected to show first-quarter earnings growth of 8.1% compared to the previous year, reduced from earlier predictions of 12.2% at the quarter's start, according to LSEG data. This week's significant earnings reports include "Magnificent Seven" constituents Tesla and Alphabet, alongside major industrial firms Boeing, Northrop Grumman, Lockheed Martin and 3M. China, the world's second-largest economy, has become a primary focus of Trump's recent attention, whilst maintaining its own strong stance. On Monday, China issued a stern warning to nations considering trade agreements with the United States that might compromise Chinese interests, particularly as Japan, South Korea and other countries pursue negotiations. Also Read | "If this happens, China will never accept it and will resolutely take countermeasures in a reciprocal manner," China's Commerce Ministry said in a statement. Tired of too many ads? go ad free now Where are the US stock markets heading and why are rising Treasury yields worrying investors? Will the world's largest economy slip into recession? Here's what you should know: Some startling numbers The S&P 500 ended trading at 16% lower than its February 19 peak closing level. The index would officially enter bear market territory if it drops to 20% below its previous all-time high. The three primary indices declined by more than 2%, with the technology-focused Nasdaq experiencing substantial drops, particularly affected by losses in the "Magnificent Seven" large-cap growth companies. Nvidia shares fell 4.5% following a report that Huawei Technologies would commence bulk deliveries of sophisticated AI chips to Chinese customers as soon as next month. Tesla shares declined 5.8% after a report about delays in launching a basic Model Y variant. The electric vehicle manufacturer's stock value has decreased by more than 50% since its peak in December, with critics citing overvaluation and concerns about CEO Elon Musk's involvement in US government spending reduction initiatives affecting brand perception. In an unexpected development, US government bonds and the US dollar depreciated alongside broader market declines. This represents an atypical situation, as traditionally, Treasury securities and the dollar have appreciated during periods of market uncertainty. The current scenario differs because the Trump administration's policies are generating market anxiety and potentially undermining their status as premier safe-haven investments. The increasing Treasury yields present a significant challenge for the administration, as they would result in elevated interest rates for mortgages, vehicle financing and other consumer loans, whilst creating more costly borrowing conditions for businesses. The global reserve currency, the US dollar, is experiencing a decline due to various economic factors, including concerns about tariffs, rising inflation and economic uncertainty in the United States. When compared against a collection of major currencies, including the euro, Japanese yen, Canadian Dollar and Swiss franc, the US dollar has witnessed a significant decline of 9% this year. The currency's downward trend commenced at the start of 2025, with the pace of depreciation becoming more pronounced during the recent two months. Trump's Big Warning Trump intensified his attacks on Fed chief Powell through a confrontational Truth Social post on Monday, expressing concerns about an economic slowdown and demanding immediate interest rate cuts, which raised questions about Federal Reserve independence. "With these costs trending so nicely downward, just what I predicted they would do, there can almost be no inflation, but there can be a SLOWING of the economy unless Mr. Too Late, a major loser, lowers interest rates, NOW," Trump said on Truth Social. However, the Federal Reserve's upcoming meeting on May 6-7 is expected to see the central bank maintain the current benchmark interest rate between 4.25% and 4.50%. Also Read | The Federal Reserve remains cautious about swift rate reductions, aiming to prevent inflation from surging again. Having successfully brought inflation down from over 9% three years ago to nearly its 2% target, the central bank maintains its vigilant stance. Economic forecasts and market confidence have deteriorated as Trump increased tariffs on imports from key US trading partners and essential commodities, with leading economists indicating higher probability of recession this year. US markets heading for 'shakier days'? Any attempt by Trump to dismiss Powell would likely trigger significant anxiety across financial markets. Although Wall Street generally favours lower rates due to their positive impact on equity valuations, investors would be more concerned about a compromised Federal Reserve's ability to manage inflation effectively. Such an action could potentially damage or destroy the USA's standing as the globe's most secure destination for monetary assets. Countries with autonomous central banking institutions demonstrate superior economic performance, including accelerated growth and reduced inflation rates, benefiting their citizens, according to Jed Ellerbroek, who manages portfolios at Argent Capital Management in St. Louis. He expressed serious concerns about political interference with the Federal Reserve, noting its detrimental impact on market stability. "Companies sure how to respond, waiting for final answers from the United States about tariff rates," Ellerbroek said according to a Reuters report. "What makes it dispiriting, I think, is the fact that this is like self-inflicted; we're in this situation by choice, by this administration's choice." Mark Mobius, chairman of Mobius Emerging Opportunities Fund, sees 'shakier' days ahead for markets. 'You can expect more uncertainty in the market as Donald Trump is negotiating. He has got a pile of trade deals to sort out before his 90-day timeout on some tariffs runs out. And let's face it, when you are negotiating, you have to give something to get something. People who have worked on trade deals in the past say this kind of rushed timeline brings all sorts of complications and roadblocks. So, brace yourself, the market is likely to get even shakier,' he told ET. Mobius notes that the dollar is weakening because of China. 'They have been selling US treasury bonds quite aggressively. Now, since China is the second-biggest holder of US government debt, this kind of move shakes things up. So, when China sells these bonds, it gets paid in dollars. That puts pressure on the dollar and pushes US interest rates higher. China is basically using its bond holdings as a bargaining chip. They are trying to put pressure on the US during trade negotiations. By the end of this process, the dollar should settle,' he said. The widespread uncertainty affecting crucial financial market foundations has prompted investors to reconsider their fundamental investment strategies. "We can no longer extrapolate from past trends or rely on long-term assumptions to anchor portfolios," strategists at BlackRock Investment Institute said in a report. "The distinction between tactical and strategic asset allocation is blurred. Instead, we need to constantly reassess the long-term trajectory and be dynamic with asset allocation as we learn more about the future state of the global system,' they said according to an AP report. According to strategists led by Jean Boivin, this situation might encourage international investors to maintain their investments within their domestic markets rather than investing in the United States.
Reuters
04-04-2025
- Business
- Reuters
Wall St Week Ahead Shell-shocked markets brace for more tariff tumult
NEW YORK, April 4 (Reuters) - Tariff-stunned markets face another week of potential tariff turmoil, with fallout from President Donald Trump's sweeping import levies keeping investors on edge after the worst week for U.S. stocks since the onset of the coronavirus crisis five years ago. Investors will look for signs the stock market may be close to at least a short-term bottom after Trump's tariffs rocked global asset prices this week. The benchmark S&P 500 (.SPX), opens new tab lodged its biggest weekly drop since March 2020 and the Nasdaq Composite (.IXIC), opens new tab on Friday ended down more than 20% from its December record high, confirming the tech heavy index is in a bear market. The Dow Jones Industrial Average (.DJI), opens new tab finished the week down well over 10% from its December record high, marking a correction for the blue-chip index. More volatility could be in store ahead of the April 9 deadline Trump set for his reciprocal global tariffs to take effect, after his Wednesday announcement of the levies sent markets into a tailspin, raising fears of a global recession. "The playbook on this is very, very unclear for everybody," said Jeffrey Palma, head of multi-asset solutions at Cohen & Steers. "There is all the questions about tariffs, retaliatory tariffs, where this ends and where it shakes out." With the steep slide at the end of the week, the S&P 500 was down over 17% from its February 19 all-time closing high. In the two days following Trump's tariff announcement, S&P 500 companies lost about $5 trillion in market value, the largest amount ever in a two-day stretch, according to LSEG data. "The markets could be their own worst enemy," said Matthew Miskin, co-chief investment strategist at John Hancock Investment Management. "This kind of drawdown ... could shake confidence and it could actually lead to weaker economic activity." Trump's tariffs would amount to the highest trade barriers in more than a century, including a 10% baseline tariff on all imports and higher targeted duties on dozens of countries. The trade battle escalated on Friday when China hit back with additional tariffs of 34% on U.S. goods. Investors downgraded their economic and earnings forecasts, with JPMorgan analysts raising the risk of a global recession this year to 60% from 40% before. Some investors held out hope that Trump would negotiate deals in coming days with some countries that would roll back some of the tariffs. Others were dubious that Trump would make any concessions. Despite Trump's opportunity to pivot, "it is not lost on us that the window is shrinking and some damage to consumer and business confidence may have been done already regardless of the negotiated ending point to follow," Citi strategist Scott Chronert said in a note on Friday. One sign of gloom: The Cboe Volatility Index (.VIX), opens new tab, an options-based measure of investor anxiety, registered its highest closing level since April 2020. Bearish sentiment in the American Association of Individual Investors survey reached 61.9%, its highest reading since 2009 during the financial crisis. With tariffs clouding the outlook, investors are wary of dour financial forecasts as U.S. companies kick off quarterly reports in earnest in the coming week. S&P 500 earnings are expected to have climbed 7.8% in the first quarter from the year ago period, according to LSEG IBES. Companies set to report next week include major banks JPMorgan (JPM.N), opens new tab and Wells Fargo (WFC.N), opens new tab due on April 11. "We see a lot of uncertainty in the earnings outlook at the moment," said RBC Capital Markets strategists in a Friday note, in which they cut their 2025 earnings forecast for the S&P 500. The market selloff and increasing pessimism could mean the bar is lower for news that would buoy stocks, said Keith Lerner, co-chief investment officer with Truist Advisory Services. "If you had anything that was even remotely positive right now, you could see a short-term spark because people are braced for the negative outcome," Lerner said. Also in the coming week, the monthly consumer price index report on Thursday could help set a baseline for U.S. inflation ahead of the impact from tariffs, which are widely expected to add to pricing pressures. Investors have been factoring in more Federal Reserve interest rate cuts this year in the wake of the tariff announcement, with Fed fund futures accounting for 100 basis points of easing this year, according to LSEG data. Fed Chair Jerome Powell said on Friday that the tariffs are "larger than expected" and the economic fallout, including higher inflation and slower growth, likely will be as well. Palma, of Cohen & Steers, said it was critical for markets to show some stability in the coming days. "We've had two really, really big days in terms of sharp market moves," Palma said. "What we really don't want to see is that starts to create some vicious cycle that itself destabilizes the financial system."
