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Yahoo
6 days ago
- Business
- Yahoo
US stock futures slip amid US-China trade tensions
U.S. stock futures are lower after major stock indexes eked out a gain on the first trading day of the month despite rising trade tensions between the U.S. and China. "It appears the market took solace in the White House signaling that President (Donald) Trump and Xi Jinping would talk this week," said Mike O'Rourke, chief market strategist at JonesTrading. At 6:20 A.M. ET, futures linked to the blue-chip Dow fell -0.40%, while broad S&P 500 index futures dropped -0.45% and tech-heavy Nasdaq futures slipped -0.44%. Before the bell Dollar General, Signet Jewelers and Nio are set to report earnings. Stocks to watch include: EchoStar said it won't make about $183 million in cash interest payments on a series of Dish's notes. The non-payment was made in light of recent uncertainty raised by the Federal Communications Commission, it said. Pegasystem raised its full-year outlook above analysts' forecasts. Credo Technology's results in the last three months of its fiscal year beat analysts' forecasts. Medora Lee is a money, markets, and personal finance reporter at USA TODAY. You can reach her at mjlee@ and subscribe to our free Daily Money newsletter for personal finance tips and business news every Monday through Friday. This article originally appeared on USA TODAY: US stock futures slip amid US-China trade tensions 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
6 days ago
- Business
- Yahoo
US stock futures slip amid US-China trade tensions
U.S. stock futures are lower after major stock indexes eked out a gain on the first trading day of the month despite rising trade tensions between the U.S. and China. "It appears the market took solace in the White House signaling that President (Donald) Trump and Xi Jinping would talk this week," said Mike O'Rourke, chief market strategist at JonesTrading. At 6:20 A.M. ET, futures linked to the blue-chip Dow fell -0.40%, while broad S&P 500 index futures dropped -0.45% and tech-heavy Nasdaq futures slipped -0.44%. Before the bell Dollar General, Signet Jewelers and Nio are set to report earnings. Stocks to watch include: EchoStar said it won't make about $183 million in cash interest payments on a series of Dish's notes. The non-payment was made in light of recent uncertainty raised by the Federal Communications Commission, it said. Pegasystem raised its full-year outlook above analysts' forecasts. Credo Technology's results in the last three months of its fiscal year beat analysts' forecasts. Medora Lee is a money, markets, and personal finance reporter at USA TODAY. You can reach her at mjlee@ and subscribe to our free Daily Money newsletter for personal finance tips and business news every Monday through Friday. This article originally appeared on USA TODAY: US stock futures slip amid US-China trade tensions Sign in to access your portfolio
USA Today
6 days ago
- Business
- USA Today
US stock futures slip amid US-China trade tensions
US stock futures slip amid US-China trade tensions Show Caption Hide Caption What is the S&P 500? A complete guide to this key stock market index Understanding the S&P 500: What it is and why it matters U.S. stock futures are lower after major stock indexes eked out a gain on the first trading day of the month despite rising trade tensions between the U.S. and China. "It appears the market took solace in the White House signaling that President (Donald) Trump and Xi Jinping would talk this week," said Mike O'Rourke, chief market strategist at JonesTrading. At 6:20 A.M. ET, futures linked to the blue-chip Dow fell -0.40%, while broad S&P 500 index futures dropped -0.45% and tech-heavy Nasdaq futures slipped -0.44%. Corporate news Before the bell Dollar General, Signet Jewelers and Nio are set to report earnings. Stocks to watch include: EchoStar said it won't make about $183 million in cash interest payments on a series of Dish's notes. The non-payment was made in light of recent uncertainty raised by the Federal Communications Commission, it said. Pegasystem raised its full-year outlook above analysts' forecasts. Credo Technology's results in the last three months of its fiscal year beat analysts' forecasts. Medora Lee is a money, markets, and personal finance reporter at USA TODAY. You can reach her at mjlee@ and subscribe to our free Daily Money newsletter for personal finance tips and business news every Monday through Friday.
Yahoo
16-05-2025
- Business
- Yahoo
Has the stock market's epic rebound come too far, too fast? What investors chasing the rally should keep in mind.
Any investor who was bold enough to buy the dip in stocks last month has been quickly rewarded. But has the stock market's comeback been too much, too fast? Some on Wall Street think so. I have $50,000 in credit-card debt after my divorce, but received $30,000 after a car wreck. Do I buy a used Lexus? My second wife says her 2 kids should inherit our estate, but I also have 2 kids. Is that fair? My husband and I spend more money on our daughter and her family than on my single son. Do we compensate him? These $5,000 bonds can help you fix a stock-heavy portfolio 'I am scared to death that I'll run out of money': My wife and I are in our 50s and have $4.4 million. Can we retire early? 'I think what we're seeing now is emotion and people chasing the rally, and this fear of missing out,' said Michael O'Rourke, chief market strategist at Jones Trading, during an interview with MarketWatch. Since its closing low on April 8, the S&P 500 SPX has risen by more than 17% through Tuesday's close, a pace rarely seen over the past 75 years. Analysts at Birinyi Associates have found six examples since 1950 where short-term returns for the S&P 500 were on par with what investors have seen over the past six weeks. Following each example, returns 12 months later were almost universally strong. The strongest example followed the COVID-19-inspired meltdown in early 2020: Following the market's initial comeback, the S&P 500 continued to climb, ultimately tacking on a 46% return 12 months later. But a lot can happen in a year, and there are still plenty of investors out there who expect stocks could head lower once again in the interim. Even Wall Street luminaries like Paul Tudor Jones have said that they expect the market will revisit its April lows later this year as the economic damage from Trump's tariffs is finally felt. See: Paul Tudor Jones says U.S. stocks will fall to new lows — even if Trump dramatically dials back China tariffs Mark Hackett, chief market strategist at Nationwide, pointed out that U.S. stocks are still expensive compared with companies' expected earnings over the next 12 months. 'The market has raced from oversold to overbought in record time, with the S&P 500 now trading at 21x forward earnings,' Hackett said in emailed commentary. The relative strength index for the S&P 500, a popular stock-market momentum gauge, was sitting north of 70 on Wednesday, putting the index squarely in overbought territory. It had fallen below 30 as recently as April 4, before Trump announced his initial 90-day pause on global tariffs. To be sure, investors inclined to keep on buying have plenty of grist to support their thesis. Trump has walked back many of his most economically damaging tariffs, and few expect the administration will bring them back — at least not at the levels announced on April 2. At the same time, many hedge funds and other institutional investors who either sold stocks in April or sat things out are likely facing pressure to chase the rally. Trade deals with the U.K. and China have shown that the White House is serious about finding an off-ramp. After unveiling the 90-day pause followed by a dramatic de-escalation of its China tariffs this week, the U.S. effective tariff rate has fallen to 14.4%, compared with nearly 24% just before, according to data from J.P. Morgan. To be sure, even 14.4% is higher than where tariffs stood at the beginning of 2025. Adding to the sense of optimism, much of the hard economic data released so far have shown little indication that the tariffs, and the attendant surge in policy uncertainty caused by their chaotic rollout, have caused any deeper damage to the American labor market or consumers' willingness to spend. But plenty of data from April has yet to be released, and some expect the full extent of the economic blowback could take longer to play out. 'There has likely been damage done, especially to smaller businesses, that it will be difficult to recover from, at least in the short term,' said Melissa Brown, managing director of investment-decision research at SimCorp. There are still plenty of unanswered questions surrounding the White House's tariff agenda that could upend stocks. After rampant speculation about whether the 'Trump put' was still in play, the administration has shown once again that it is responsive to pressure from the financial markets, be it stocks or bonds. See: Stock-market recovery suggests equities must fall this far to spark a 'Trump put' or pivot Trump's plans for national-security tariffs on semiconductors and pharmaceuticals remain a key unanswered question for investors. The administration has been largely quiet regarding its plans lately, although the Commerce Department was asked to begin a formal investigation at the beginning of April, Jones Trading's O'Rourke noted. If the White House follows through with substantial levies intended to encourage the reshoring of production related to sensitive goods, it could send stocks reeling once again. The confusion here helps underscore a key risk for stocks: The fact that with one Truth Social post, Trump could send investors scrambling out of equities once again. O'Rourke, however, said he is beginning to suspect that last month's market chaos may have caused the president to lose his nerve on his tariff agenda. 'Did the president get so spooked on the reaction to his China tariffs that he doesn't follow through here?' O'Rourke wondered. Then there's the question of the bond market. The yield on the 10-year Treasury note BX:TMUBMUSD10Y quietly crept back above 4.50% on Wednesday, returning to levels seen last month that spooked fears of a bond-market meltdown and helped encourage Trump to announce the 90-day pause on many of his 'liberation day' levies. Bond prices move inversely to bond yields, falling as yields rise. 'Yields on the long end are rising, that's going to be our ultimate battle now,' said George Cipolloni, a portfolio manager at Penn Mutual Asset Management. U.S. stocks traded mostly higher on Wednesday, with the S&P 500 up marginally while the Nasdaq Composite COMP ended on solid gains. The Dow Jones Industrial Average DJIA and the Russell 2000 RUT both closed lower. Wall Street's biggest bull held his nerve throughout this year's selloff. What he's saying now. 'I'm flabbergasted': My friend wants to borrow $5,800 to save his home from foreclosure. What should I do? Has the stock market's epic rebound come too far, too fast? What investors chasing the rally should keep in mind. 'We live modestly': My wife and I have $900K in stocks and $380K in savings and CDs. Are we holding too much cash? Wall Street's fear gauge just dropped with striking speed. What historically comes next for stocks?
Yahoo
06-05-2025
- Business
- Yahoo
Tariff worries hanging over investors despite the market rally
00:00 Speaker A US stock futures pointing lower here to begin the week after the S&P 500 recorded its longest streak of gains since 2004. Now the gains come as trade tensions ease with President Trump saying deals are coming but is the market's trade anxiety behind it? That's the big question. Joining us now to discuss, we've got Michael O'Rourke, Jones Trading Chief market strategist here. Great to have you back on the program with us and taking the time this morning. So Michael, as you kind of read through the data that you and your team are digesting, is the worst behind us? Is this rally, at least in the interim period of time, something that is more solidified and a longer-term trend that we should be watching for? 01:37 Michael O'Rourke I think the rally is more of a, a hope rally. Uh there's been a lot of speculation in the past few weeks. Obviously, President Trump said he is going to reduce the China tariffs. Uh last week we got headlines about a thaw with China. Over the weekend the president said they are finally talking. But um the situation remains. We still have a lot of tariffs in place and uh we haven't had any, you know, substantive progress made yet. Friday will mark uh the 30-day mark of the 90-day postponement and 10% cap on reciprocal tariffs. And we're looking at a situation where in Q1, um a lot of companies stockpiled inventory ahead of liberation day. And again, if we don't see some tariffs come down quickly, uh I think we're going to see some notable hiccups by the end of the month. So I think the uh the equity market's a little bit ahead of itself in this rally. 03:37 Speaker A Yeah, talk to me about this rally Michael because I was speaking with Ed Al-Hussainy of Columbia Threadneedle about this and he just said, well, investors can't stay mad for too long. That's what's driving this sort of recovery from that April 2nd uh so-called Liberation Day. If that's the case then why, then, then, where do we go from here? How much conviction do you have that stocks can continue to go up? 04:34 Michael O'Rourke Uh I well I think what we really need to see is, is the, where the China tariffs are going to come down to and this, you know, when, when the president said he's going to set them, which I'm take, I'm interpreting to be sometime this week. On Wednesday we're going to see uh that's the end of the comment period, uh the public comment period for the section 232 investigations for pharmaceuticals and semiconductors. So after that you would expect we're going to see announcements regarding those tariffs. So again, and then you have the, you know, the media tariffs about uh movies made outside the United States being tariffed at 100%. So there's still a lot of tariff news and potential negatives ahead of us here that I think when those headlines start to flow again, I think you're going to see investors begin to express concern. I think a lot of the rally has been people, you know, repositioned after the pause or the postponement of the reciprocal tariffs, and we're just drifting now and in kind of a holding period or just waiting.
