Latest news with #KanchanaChakravarty
Yahoo
10-06-2025
- Business
- Yahoo
Wall Street futures mixed as US-China trade talks grab focus
By Kanchana Chakravarty and Sukriti Gupta (Reuters) -U.S. stock index futures were mixed on Tuesday as investors awaited the outcome of ongoing trade talks between the United States and China aimed at cooling a tariff dispute that has bruised global markets this year. U.S. Commerce Secretary Howard Lutnick said trade talks with China were going well as the two sides met for a second day in London. Investors are hoping for an improvement in ties after the relief around a preliminary deal struck last month gave way to fresh doubts when Washington accused Beijing of blocking exports critical to sectors such as aerospace, semiconductors and defense. White House economic adviser Kevin Hassett said on Monday the U.S. was likely to agree to lift export controls on some semiconductors in return for China speeding up the delivery of rare earths. "The pause in tariff hostilities is a positive starting point as the U.S. seeks the restoration of rare earth mineral exports from China which would inevitably result in a mutual relaxation," Richard Hunter, head of markets at interactive investor, said in a morning note. At 06:42 a.m. ET, Dow E-minis were down 21 points, or 0.05%, S&P 500 E-minis were up 3.75 points, or 0.06%, and Nasdaq 100 E-minis were up 16 points, or 0.07%. U.S. equities rallied sharply in May, with the S&P 500 index and the tech-heavy Nasdaq marking their best monthly gains since November 2023, helped by upbeat earnings reports and a softening of President Donald Trump's harsh trade stance. The S&P 500 remains a little over 2% below all-time highs touched in February, while the Nasdaq is about 3% below its record peaks reached in December. Investors are awaiting U.S. consumer prices data on Wednesday for clues on the Federal Reserve's rate trajectory. While traders largely expect the Fed to keep interest rates unchanged next week, focus will be on any signs of pick-up in inflation as Trump's tariffs risk raising price pressures. Traders see at least two 25-basis point cuts by year-end, with a 63% chance of the first cut in September, according to the CME FedWatch tool. Most megacap and growth stocks were mixed in premarket trading. Tesla shares advanced 2.2%. Shares of vaccine makers dipped in premarket trading. Health Secretary Robert F. Kennedy Jr. ousted all 17 members of a U.S. Centers for Disease Control and Prevention panel of vaccine experts and is in the process of replacing them, his department announced on Monday. Shares of vaccine maker Moderna were down 0.4% while Pfizer inched down 0.1%. Recursion Pharmaceuticals advanced 2.5% after the biotech said it will lay off around 20% of its workforce and focus on developing drugs for rare diseases and cancers to reduce cash burn during a prolonged industry downturn.
Yahoo
02-06-2025
- Business
- Yahoo
Wall Street futures slip after Trump's steel tariff threat
By Kanchana Chakravarty and Sukriti Gupta (Reuters) -U.S. stock index futures dipped on Monday following President Donald Trump's plans to double tariffs on imported steel and aluminum, fueling more uncertainty around U.S. trade policies. Trump said on late Friday he planned to increase tariffs on imported steel and aluminum to 50% from 25% starting Wednesday, just hours after he accused China of violating an agreement. Shares of U.S. steel companies rose in premarket trading, with Cleveland-Cliffs jumping 25.6%, Nucor up 10.6% and Steel Dynamics 11.4% higher. However, shares of U.S. automakers fell with Ford down 0.8% and General Motors losing 1.1%. The increased levies risk deepening Trump's global trade war, and doused enthusiasm in markets stemming from the U.S. president's softer trade stance that drove a recovery in risky assets last month. A temporary relief on some levies on China and a rollback of steep tariff threats on the European Union, along with strong earnings and improving economic picture helped the benchmark S&P 500 log its best monthly performance in 18 months in May. "It is really hard to keep up or predict what's going to happen on trade at the moment, and that's before we factor in the full ramifications from the court ruling last Thursday night, and then subsequent brief stay of execution for them on appeal," Jim Reid, global head of macro and thematic research at Deutsche Bank, said in a note. A federal appeals court on Thursday temporarily reinstated most of Trump's 'Liberation Day' tariffs blocked a day prior to that by the Court of International Trade. "For now, it seems likely that the tariff uncertainty will linger for a long time ahead even if we're still likely past the peak aggressiveness of U.S. policy," Reid said. At 7:34 a.m. ET, Dow E-minis were down 85 points, or 0.2%, S&P 500 E-minis were down 18.25 points, or 0.31%, and Nasdaq 100 E-minis were down 95 points, or 0.44%. Most megacap and growth stocks were down, with Tesla leading losses after it reported lower monthly sales in Portugal, Denmark and Sweden. The stock was last down 1.5%. Focus will be on comments from Federal Reserve Chair Jerome Powell later in the day as he presents opening remarks before the Federal Reserve Board International Finance Division's 75th anniversary conference at 1:00 p.m. ET (1700 GMT). Fed Governor Christopher Waller said on Monday that interest rate cuts remain possible later this year even with the Trump administration's tariffs likely to push up price pressures temporarily. On the data front, a reading of S&P Global U.S. manufacturing PMI is due at 9:45 a.m. ET and ISM's manufacturing activity index is scheduled for 10:00 a.m. ET. Investors are also looking ahead to a crucial nonfarm-payrolls report on Friday to gauge the U.S. labor market's strength amid tariff volatility. Among other stocks, Moderna rose 2.1% after the U.S. Food and Drug Administration approved its next-generation COVID-19 vaccine for everyone aged 65 and above. Blueprint Medicines advanced 26.8% after French drugmaker Sanofi to buy the biopharma group for up to $9.5 billion. Boeing rose 1.6% after BofA Global Research upgraded the planemaker's stock to "buy" from "neutral". 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
Zawya
10-03-2025
- Business
- Zawya
HSBC downgrades US stocks, turns bullish on European equities
HSBC on Monday downgraded U.S. equities, citing uncertainty around tariffs, while turned bullish on European stocks following boost from Germany loosening its fiscal reforms. The brokerage lowered U.S. equities to "neutral" and raised rating on European stocks, excluding UK stocks to "overweight" from "underweight" (Reporting by Kanchana Chakravarty in Bengaluru; Editing by Shinjini Ganguli)
Yahoo
08-03-2025
- Business
- Yahoo
Broadcom jumps as upbeat forecast raises hopes of AI rally resurgence
By Kanchana Chakravarty and Arsheeya Bajwa (Reuters) -Broadcom's shares rose 6% on Friday as the semiconductor maker's strong revenue forecast helped restore some confidence in AI chip demand after a bruising sector-wide selloff following rival Marvell Technology's bleak outlook. The rosy forecast from Broadcom - the biggest supplier of custom AI chips to Big Tech - could help refuel a sputtering AI stock rally that has been hit by worries over hefty spending on AI infrastructure sparked by low-cost breakthroughs from Chinese startup DeepSeek. "Given the anxiety about AI conditions in general, these (Broadcom) results should come as a relief," according to Morgan Stanley analysts. Broadcom CEO Hock Tan said on Thursday the company expects AI chip revenue of $4.4 billion in the second quarter, underscoring the push from large cloud providers to reduce dependence on the costly processors designed by Nvidia. AI chip leader Nvidia rose 2% and memory chipmaker Micron Technology's shares gained more than 3% on Friday. Smaller rival Marvell's shares, however, fell more than 3% on Friday, after they closed down 19.8% on Thursday, marking their worst day in more than two decades due to a disappointing in-line revenue forecast. Broadcom is set to add more than $50 billion to its market value, if gains hold, but would still be below the $1 trillion valuation threshold it had first crossed in December in what was dubbed as its "Nvidia moment". "Perhaps the AI trade isn't as dead as feared ... but amid AI nervousness, (Broadcom) management's view of the future is becoming even more positive," Bernstein analysts said. Broadcom's shares have fallen more than 20% so far this year, after doubling in 2024. The broader Philadelphia Semiconductor index is down about 10% so far in 2025, after gaining nearly 20% last year, as higher tariffs under U.S. President Donald Trump weigh on the sector. Under Tan, Broadcom has also expanded its strategy of building a diverse portfolio of tech companies such as its $69-billion buyout of cloud-computing firm VMware. "Broadcom is unique as a portion of their business comes from enterprise software," said Dan Morgan, senior portfolio manager at Synovus Trust, which holds shares of the chipmaker. "This is a blessing when the chip sector goes through a downturn." Broadcom's software revenue grew 47% in the first quarter to $6.70 billion, representing more than 40% of total sales. The company has a 12-month forward price-to-earnings ratio of 26.58, compared with 23.46 for Nvidia and 24.50 for Marvell, according to data compiled by LSEG. Sign in to access your portfolio
Zawya
24-02-2025
- Business
- Zawya
Citi upgrades Indian stocks to 'overweight' on rate cut prospects, limited trade impact
Citigroup upgraded Indian stocks to "overweight" from "neutral" on Monday, citing improving consumer sentiment, further rate cuts, and limited U.S. trade exposure. India's "domestic-oriented economy" keeps it more shielded from increased exposure to the U.S. or China, the brokerage said, while keeping a "neutral" rating on broader emerging markets stocks. The Wall Street brokerage said it expects India's personal income tax rate cuts, announced earlier this month, to boost consumption. The government's plan to spend a record 11.21 trillion rupees ($129.54 billion) on infrastructure in the financial year that starts in April is also expected to aid economic growth and create more jobs, Citi said. It expects the Reserve Bank of India to continue its monetary policy easing cycle, expecting an additional 50 basis points of reductions this year, which could further lift local stocks. Citi previously forecast the benchmark Nifty 50 touching 26,000 levels by December, a 15% rise from Monday's close, and retained its projection for the benchmark MSCI EM equities index at 1,170 by end-2025, a 2% dip from its last close. Indian equities have been under selling pressure for most of February. The Nifty 50 has fallen in 15 of 17 trading sessions this month, losing more than 4%, on persistent foreign outflows, uncertainty about U.S. tariffs, and concerns over slowing domestic growth. On the Latam front, the brokerage lifted its rating on Chilean stocks to "overweight" from "neutral", citing potential growth in earnings-per-share. The brokerage lowered its rating on Saudi Arabia to "neutral" from "overweight" and reduced ASEAN equities to "underweight" from "neutral". (Reporting by Kanchana Chakravarty in Bengaluru; Editing by Sonia Cheema)
