Goldman Sachs is getting worried about the stock market and the economy, so the firm is giving clients strategies to ride out these coming turbulent times. The investment bank lowered its 2025 year-end S & P 500 target to 6,200 from 6,500 in a research note on Tuesday. The downgrade comes as the S & P 500 has fallen 9% from its all-time high in the last three weeks. More than half of this pullback has come from a 14% decline in Magnificent Seven stocks, according to chief U.S. equity strategist David Kostin. “The key market risk going forward is…
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Heavily shorted companies such as CrowdStrike and beaten-down Advanced Micro Devices could pop if the market manages a rebound, according to Evercore ISI. Fears that President Donald Trump ‘s trade policies could spike inflation and slow growth, leading to stagflation, have spurred the recent market sell-off as investors attempt to de-risk and find safer growth opportunities. “The uncertainty has ripped through the ‘soft’ data, begun to infect the ‘hard’ data and has resulted in a virtual ‘straight line plunge’ in the S & P 500, largest correction in two years,” Evercore ISI senior managing director Julian Emanuel said in a…
In this photo illustration, the Spotify music app is seen on a phone on June 04, 2024 in New York City.Michael M. Santiago | Getty ImagesSpotify is minting music millionaires.Nearly 1,500 artists generated over $1 million in royalties from Spotify in 2024, the company said Wednesday in its annual Loud and Clear Report.Spotify said more than 80% of the artists in that pool didn’t have a song reach the app’s Global Daily Top 50 chart. To reach that million-dollar threshold, an artist would need to have around 4 to 5 million monthly listeners, or 20 to 25 million monthly streams.”Spotify…
U.S. inflation rate hits 2.8% in February, less than expectedPrices for goods and services moved up less than expected in February, providing some relief as consumers and businesses worry about the looming impact tariffs might have on inflation, the Bureau of Labor Statistics reported Wednesday.The consumer price index, a wide-ranging measure of costs across the U.S. economy, ticked up a seasonally adjusted 0.2% for the month, putting the annual inflation rate at 2.8%, according to the Labor Department agency. All-item CPI had increased 0.5% in January.Read the full story here. — Jeff CoxSofter inflation data boosts U.S. stocks on WednesdayEuro sinks…
Hedge funds slashed their positions at the fastest pace in years as tariffs and signs of softer economic growth sent stocks on a rollercoaster ride. Professional money managers who make both long and short wagers cut back risk exposure by selling stocks and covering shorts in a dramatic fashion on Friday and Monday. Combined, the so-called “de-grossing” activity was the largest two-day move in four years, according to data from Goldman Sachs’ prime brokerage unit. Hedge funds were retreating at a time when the macroeconomic environment suddenly grew less sure. President Trump’s aggressive tariff charges on imports into the U.S.…
As the market sell-off deepens, the Nasdaq has now endured a 14% correction in the last three weeks. Corrections are a natural part of market cycles, allowing valuations to reset and paving the way for a healthier bull market. Even the “Magnificent Seven” stocks haven’t been spared, including Nvidia , which has plunged more than 25% from its highs despite beating earnings expectations. Like many other stocks trading at a steep discount, this sharp decline appears overdone, presenting a potential buying opportunity that could materialize in the coming days. While oversold conditions create buying opportunities, the challenge lies in timing…
Former Treasury Secretary Steven Mnuchin said Wednesday he believes “people are overreacting a bit” to the policy changes from the current Trump administration.Mnuchin, who served in President Donald Trump’s Cabinet during the Republican’s first term in office, told CNBC’s “Squawk Box” that he does not see signs of an imminent slowdown for the U.S. economy.”I don’t think we’re going to have a recession. I don’t think the outlook looks like we’re going to have a recession. And Larry Summers saying there’s a 50% probability, I just don’t agree with that,” Mnuchin said, referring to recent commentary from another former Treasury…
Workers remove a coil from the production line for quality-control testing during steel production at the NLMK Indiana steel mill on March 15, 2018 in Portage, Indiana.Scott Olson | Getty ImagesCanada said Wednesday it will impose 25% tariffs on more than $20 billion worth of U.S. goods in retaliation for the Trump administration’s steel and aluminum duties that took effect overnight.The new tariffs cover steel and aluminum, as well as other U.S. goods including computers, sports equipment and cast iron products, Canadian Finance Minister Dominic LeBlanc said at a press conference.They will take effect Thursday, LeBlanc said.The new Canadian duties…
Ukraine said it would support a Trump administration proposal for a 30-day cease-fire with Russia after talks in Saudi Arabia, as the United States agreed to immediately lift its pause on intelligence sharing and military assistance to Ukraine.The announcement on Tuesday gave new momentum to efforts to halt the fighting. The United States and its allies said the onus was now on Russia to end the war.What happened in Saudi Arabia?Secretary of State Marco Rubio and Michael Waltz, the U.S. national security adviser, sat down in the city of Jeddah with a delegation led by Andriy Yermak, the Ukrainian president’s…
China’s and U.S.’ flags are seen printed on paper in this illustration taken January 27, 2022. Dado Ruvic | ReutersBEIJING — China is willing to do more to address White House concerns about illicit fentanyl trade, but it will be “a different thing” if ongoing debate over the drug facilitates more U.S. tariffs on the world’s second largest economy, an official from the Chinese Ministry of Foreign Affairs told reporters Wednesday.Washington should have “said a big thank you” to China on what it has done to restrict fentanyl trade in the U.S., the official said via an official English translation, claiming…
