Latest news with #USStockMarket
Bloomberg
5 days ago
- Business
- Bloomberg
Stock Bulls Face June Reckoning After May's Meltup
One look at the calendar tells you that the frantic,seesaw rally in the US stock market this month is at risk of running out of steam, at least temporarily. Pricey valuations, muted demand for hedges and stretched investor positioning have left stocks vulnerable to a pullback, said Jeffrey Hirsch, editor of the Stock Trader's Almanac.
Time of India
19-05-2025
- Business
- Time of India
US Stock Market today down after Moody's downgrade rating of US credit but past data reveals effects may not last long
US Stock Market on Monday fell big time as Moody's downgrade rating of US credit has left a bruising impact on the Wall Street. However, experts have assured S&P 500, Dow Jones and Nasdaq investors that Moody's credit downgrade is unlikely to have long-term cascading effect on the share market, as per a report. Experts have cited S&P 2011 downgrade and Fitch 2023 downgrade and their effects to predict a more hopeful trade time. In both cases US Stock Market bounced back within months of the downgrade report, Yahoo Finance reported. Still, stocks were off their lows, with yields on U.S. government bonds, which move inversely to prices, also easing from highs. The 10-year note rose 5 basis points to 4.49 per cent and the 30-year note touched 4.96 per cent. With 10-year Treasury Yields rising, stock market experts have advised investors to "buy the dip". by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Feast on Global Asian Cuisine Wynn Macau Read More Undo Dow Jones Industrial Average fell 65.05 points, or 0.15 per cent, to 42,589.69, the S&P 500 lost 18.10 points, or 0.30 per cent, to 5,940.18 and the Nasdaq Composite lost 92.68 points, or 0.48 per cent, to 19,118.42. Six of the 11 S&P sub-sectors fell, with consumer discretionary and energy being the worst performers. Most megacap and growth stocks recouped some of their losses around noon, though Tesla lagged with a 3.1 per cent fall. Live Events Highly valued tech stocks were pressured as rising rates tend to discount the present value of future profits. Chip stocks also sold off, with a gauge for semiconductor stocks losing 0.9 per cent. FAQs Q1. How is US Stock Market performing on Monday? A1. Dow Jones Industrial Average fell 65.05 points, or 0.15 per cent, to 42,589.69, the S&P 500 lost 18.10 points, or 0.30 per cent, to 5,940.18 and the Nasdaq Composite lost 92.68 points, or 0.48 per cent, to 19,118.42. Q2. What are key indexes of US Stock Market? A2. Key indexes of US Stock Market are Dow Jones Industrial Average, S&P 500, and Nasdaq.
Reuters
19-05-2025
- Business
- Reuters
Undimmed US 'exceptionalism' seems improbable
LONDON, May 19 (Reuters) - With heads still spinning from Wall Street's 180 degree turn over the past six weeks, investors are skeptical over still 'exceptional' U.S. stock market valuations that have barely flinched. Few doubt a de-escalation of Washington's trade war - for the next month or two at least - defused a panic. The over-caffeinated waxing and waning of recession warnings speaks to that even if U.S. import tariffs are rising regardless. But the re-inflation of extreme relative U.S. equity valuations can only be warranted if U.S. 'exceptionalism' is truly unscathed. And here's where the story seems improbable, especially if you assume the administration's stated goal of upending the status quo that existed prior to its term. Business as usual is not part of the policy design. On the face of it, the S&P 500 (.SPX), opens new tab is back in positive territory for the year for the first time since February, remarkably less than 4% from its all-time high from February. The VIX 'fear index' of equity volatility has subsided to the lowest since March and back below its long-term average. And before you think that's all just a mega-cap tech rebound, the equal-weighted S&P 500 (.EWGSPC), opens new tab is also back in the black for the year too. Both had been down 12-15% for the year shortly before April 8's 90-day pause on the draconian 'reciprocal tariff' plan of a week earlier. There are several reality checks to that, however. The tech-heavy Nasdaq (.IXIC), opens new tab, small-cap Russell 2000 (.RUT), opens new tab and exchange-traded funds in so-called Magnificent Seven top caps remain in the red for 2025 to the tune of 2% to 6%. More crucially, the S&P 500 itself is still underperforming MSCI's all-country index (.MIWD00000PUS), opens new tab by some 3% for the year so far. And, with the dollar (.DXY), opens new tab down about 6%, it lags Germany's DAX (.GDAXI), opens new tab, the broader euro zone (.STOXXE), opens new tab benchmark and Hong Kong's Hang Seng (.HSI), opens new tab by anywhere between 15-30% in dollar terms for 2025. But it's the valuation rebound that arguably causes most puzzlement with so much of the economic and policy disturbance left unresolved. The S&P 500's 12-month forward price/earnings multiple has jumped back above 20. Although still off February heady peaks over 22, it continues to surf almost 20% above its own 30-year average, more than 40% above equivalent European STOXX 600 (.STOXX), opens new tab valuation and more than 60% above the MSCI emerging markets index (.MISCIEF), opens new tab and Britain's FTSE 100 (.FTSE), opens new tab. That still spells exceptional in most people's books and has to assume those revised U.S. recession warnings remain under wraps and 'value investors' don't get tempted away, or back home, in the case of the trillions of overseas dollars in the market. "Those with sympathy for the MAGA ambitions and methods could believe U.S. exceptionalism will continue to deliver high returns, with strong capital inflows representing a willingness to hold and increase dollar holdings amongst investors in the rest of the world," mused Chris Iggo at AXA Investment Managers. "Recent events might cast some doubts on those assumptions." Iggo wrote that the only meaningful factor that had improved of late was sentiment and relief, driven in part by announcements of billions of dollars in deals done by President Trump on his Middle East tour last week. "Sentiment is fickle though. It could turn sour when the reality of weakening economic data becomes evident," he added. As to whether U.S. market pricing remains extreme, Iggo cast back to legendary investor Warren Buffett's indicator of excessive valuation being defined by how much overall market cap exceeds a country's GDP. Using the Wilshire 5000 (.FTW5000), opens new tab as a measure, U.S. equity market cap is now more than 200% of GDP - twice where it was a decade ago, twice that of France or Britain and more than 50% bigger than the same ratio for Japan. Even if U.S. recession is avoided, the overarching Trump plan to rebalance world trade with higher tariffs, narrower U.S. deficits, a countervailing capital flow reversal, weaker dollar and domestic demand spurs overseas challenge that market exception. Some point to enduring long-term themes of U.S. tech leadership and innovation. But even if faith in that persists, the current disruption has multiple hurdles over the summer ahead. July and August stand out as particularly tricky months. Ninety-day tariff pauses on global and Chinese tariff hikes expire in July, the 180-day review of U.S. membership of all multilateral institutions comes up that month too and the deadline for raising the U.S. debt ceiling drifts back onto the radar amid currently fraught budget negotiations. On top of that, the Federal Reserve's best guess on when tariff rises start to infect inflation in earnest is June - numbers set to be published in July. And even in most investors' best-case scenario of "only" a 10% universal tariff increase, the risk there is that it resolves little. "Settling on a 10 percent tariff might ... be the worst of all worlds—from the perspective of Trump's objectives," wrote Council on Foreign Relations President Michael Froman. "It could be too low to raise substantial revenue, too high to avoid pushing up prices, but not high enough to re-industrialize the United States." The opinions expressed here are those of the author, a columnist for Reuters
Yahoo
19-05-2025
- Business
- Yahoo
Morning Bid: U.S. credit grating
By Mike Dolan LONDON (Reuters) - What matters in U.S. and global markets today By Mike Dolan, Editor-At-Large, Financial Industry and Financial Markets U.S. Treasury Secretary Scott Bessent responded "who cares?" to news that the U.S. had lost its last top-notch credit rating. Bond markets might beg to differ. In today's deep dive, I discuss why investors should still be skeptical of sky-high U.S. stock market valuations. I get into all the market reactions below. Today's Market Minute * The European Union and Britain reached a tentative agreement on defence and security, fisheries and youth mobility ahead of a EU-UK summit on Monday, paving the way for British firms to participate in large EU defence contracts. * U.S. President Donald Trump's sweeping tax-cut bill, which had been stalled for days by Republican infighting over spending cuts, won approval from a key congressional committee on Sunday in a rare victory for Trump and House Speaker Mike Johnson. * The U.S. sovereign downgrade by Moody's has exacerbated investor worries about a looming debt time-bomb that could spur bond market vigilantes who want to see more fiscal restraint from Washington. * Syria is seeking to reintegrate itself into the global economy after spending decades as a pariah under the rule of Bashar al-Assad, raising the question of whether the new government in Damascus will be expected to repay the massive debts the prior regime incurred while fighting. Check out the column by sovereign debt experts Lee Buchheit and Mitu Gulati. U.S. credit grating The 30-year U.S. Treasury yield topped 5% to hit its highest since October 2023 after Moody's on Friday stripped the United States of its AAA sovereign credit rating. It was the last of the three main credit ratings agencies to do so. Ten-year yields also jumped about five basis points from Friday's close, the dollar slipped and Wall Street stock futures fell more than 1%. Bessent used television interviews on Sunday to dismiss the downgrade, while also warning trade partners that they would get maximum tariffs if they did not offer deals in "good faith". This reignited trade tensions that had dissipated somewhat last week. Trump added to corporate America's anxieties by insisting that Walmart "eat the tariffs" instead of blaming price increases on import duties imposed by his administration. Bessent's dismissal of the downgrade may resonate with many, as the Moody's decision lagged behind the other agencies' actions and was predictable given warnings over the past year. Still, the downgrade comes at a sensitive time for the bond market, as the budget deficit looks set to continue ballooning. Trump's sweeping tax cut bill, which had been stalled for days by Republican infighting over spending cuts, won approval from a House Budget Committee on Sunday. At an unusual Sunday-night session, four hardline Republican conservatives who had blocked the legislation allowed the bill to move forward as they pressed for deeper spending cuts in closed-door talks with Republican leaders and White House officials. The bill, which non-partisan analysts say would add $3-5 trillion to the nation's $36.2 trillion in debt over the next decade, is expected to go to a full house vote by the end of the month. Moody's cited the rising debt, which it said was on track to reach 134% of GDP by 2035, for its decision to downgrade the U.S. credit rating. Some banks expect the annual deficit to rise above 7% of GDP next year. Nervousness has also risen over the last month about the stability of foreign holdings of Treasuries. March data on overseas ownership of Treasuries, also released late Friday, showed rising demand before the April 2 tariff sweep. But Chinese holdings fell by almost $20 billion during the month. And holders based in Britain, often seen as a proxy for hedge funds and offshore holdings, overtook China as the second largest grouping. Bessent now heads to meet G7 finance ministers and central bankers in Canada this week for more talks. U.S. Vice President JD Vance and European Commission President Ursula von der Leyen met on Sunday to discuss the bilateral negotiation process. Elsewhere, China's latest economic health check for April showed some resilience in industry, but some worrying misses in retail sales and the ailing property sector. Chinese stocks ended in the red on Monday. In Europe, the focus was on Britain agreeing to the most significant reset of ties with the European Union since Brexit. Britain removed some trade barriers and will collaborate on defence to help expand its economy and boost security on the continent. Make sure to check out today's column, where I explain why the belief in perpetual U.S. market dominance seems increasingly improbable. Chart of the day This may not be a chart, strictly speaking, but this list speaks for itself. Moody's is the last of the three main credit ratings firms to strip the United States of its triple-A rating. Fewer and fewer countries have top-notch ratings from at least two of the agencies. The Top 10 in the list includes five European Union sovereigns, with a total of seven from the wider European continent. Canada, Australia and Singapore make up the rest. Today's events to watch * U.S. April leading economic indicator (8:30 AM EDT) * Federal Reserve Vice Chair Philip Jefferson, New York Fed President John Williams, Dallas Fed chief Lorie Logan, Atlanta Fed boss Raphael Bostic and Minneapolis Fed chief Neel Kashkari all speak. * UK-European Union summit on post-Brexit reset agreement Opinions expressed are those of the author. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias. (By Mike Dolan; Editing by Anna Szymanski and Kevin Liffey) 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
Reuters
19-05-2025
- Business
- Reuters
U.S. credit grating
LONDON, May 19 (Reuters) - What matters in U.S. and global markets today By Mike Dolan, opens new tab, Editor-At-Large, Financial Industry and Financial Markets U.S. Treasury Secretary Scott Bessent responded "who cares?" to news that the U.S. had lost its last top-notch credit rating. Bond markets might beg to differ. In today's deep dive, I discuss why investors should still be skeptical of sky-high U.S. stock market valuations. I get into all the market reactions below. Today's Market Minute * The European Union and Britain reached a tentative agreement on defence and security, fisheries and youth mobility ahead of a EU-UK summit on Monday, paving the way for British firms to participate in large EU defence contracts. * U.S. President Donald Trump's sweeping tax-cut bill, which had been stalled for days by Republican infighting over spending cuts, won approval from a key congressional committee on Sunday in a rare victoryfor Trump and House Speaker Mike Johnson. * The U.S. sovereign downgrade by Moody's has exacerbated investor worries about a looming debt time-bomb that could spur bond market vigilantes who want to see more fiscal restraint from Washington. * The possible lifting of U.S. sanctions on Iran's oil exports could deal a fatal blow to independent Chinese refineries that have thrived by processing Tehran's discounted crude, while also putting further downward pressure on oil prices. Read the latest analysis from Reuters columnist Ron Bousso. * Syria is seeking to reintegrate itself into the global economy after spending decades as a pariah under the rule of Bashar al-Assad, raising the question of whether the new government in Damascus will be expected to repay the massive debts the prior regime incurred while fighting. Check out the column by sovereign debt experts Lee Buchheit and Mitu Gulati. U.S. credit grating The 30-year U.S. Treasury yield topped 5% to hit its highest since October 2023 after Moody's on Friday stripped the United States of its AAA sovereign credit rating. It was the last of the three main credit ratings agencies to do so. Ten-year yields also jumped about five basis points from Friday's close, the dollar (.DXY), opens new tab slipped and Wall Street stock futures fell more than 1%. Bessent used television interviews on Sunday to dismiss the downgrade, while also warning trade partners that they would get maximum tariffs if they did not offer deals in "good faith". This reignited trade tensions that had dissipated somewhat last week. Trump added to corporate America's anxieties by insisting that Walmart (WMT.N), opens new tab "eat the tariffs" instead of blaming price increases on import duties imposed by his administration. Bessent's dismissal of the downgrade may resonate with many, as the Moody's decision lagged behind the other agencies' actions and was predictable given warnings over the past year. Still, the downgrade comes at a sensitive time for the bond market, as the budget deficit looks set to continue ballooning. Trump's sweeping tax cut bill, which had been stalled for days by Republican infighting over spending cuts, won approval from a House Budget Committee on Sunday. At an unusual Sunday-night session, four hardline Republican conservatives who had blocked the legislation allowed the bill to move forward as they pressed for deeper spending cuts in closed-door talks with Republican leaders and White House officials. The bill, which non-partisan analysts say would add $3-5 trillion to the nation's $36.2 trillion in debt over the next decade, is expected to go to a full house vote by the end of the month. Moody's cited the rising debt, which it said was on track to reach 134% of GDP by 2035, for its decision to downgrade the U.S. credit rating. Some banks expect the annual deficit to rise above 7% of GDP next year. Nervousness has also risen over the last month about the stability of foreign holdings of Treasuries. March data on overseas ownership of Treasuries, also released late Friday, showed rising demand before the April 2 tariff sweep. But Chinese holdings fell by almost $20 billion during the month. And holders based in Britain, often seen as a proxy for hedge funds and offshore holdings, overtook China as the second largest grouping. Bessent now heads to meet G7 finance ministers and central bankers in Canada this week for more talks. U.S. Vice President JD Vance and European Commission President Ursula von der Leyen met on Sunday to discuss the bilateral negotiation process. Elsewhere, China's latest economic health check for April showed some resilience in industry, but some worrying misses in retail sales and the ailing property sector. Chinese stocks ended in the red on Monday. In Europe, the focus was on Britain agreeing to the most significant reset of ties with the European Union since Brexit. Britain removed some trade barriers and will collaborate on defence to help expand its economy and boost security on the continent. Make sure to check out today's column, where I explain why the belief in perpetual U.S. market dominance seems increasingly improbable. Chart of the day This may not be a chart, strictly speaking, but this list speaks for itself. Moody's is the last of the three main credit ratings firms to strip the United States of its triple-A rating. Fewer and fewer countries have top-notch ratings from at least two of the agencies. The Top 10 in the list includes five European Union sovereigns, with a total of seven from the wider European continent. Canada, Australia and Singapore make up the rest. Today's events to watch * U.S. April leading economic indicator (8:30 AM EDT) * Federal Reserve Vice Chair Philip Jefferson, New York Fed President John Williams, Dallas Fed chief Lorie Logan, Atlanta Fed boss Raphael Bostic and Minneapolis Fed chief Neel Kashkari all speak. * UK-European Union summit on post-Brexit reset agreement Opinions expressed are those of the author. They do not reflect the views of Reuters News, which, under the Trust Principles, opens new tab, is committed to integrity, independence, and freedom from bias.
