High Valuations Raise the Stakes as Q4 Earnings Forecasts Decline As the year winds down, Wall Street analysts are once again trimming their profit forecasts for the next calendar year—a common practice during the fourth quarter. By mid-November, estimates for S&P 500 earnings in 2025 had fallen to $274.96 per...
Bears Are Eyeing This Stock-Market Predictor — But It’s Rarely Right The “Fed model” isn’t about to derail the stock market, despite its recent shift into negative territory. This well-known market-timing tool compares the stock market’s earnings yield (the inverse of the P/E ratio) with the 10-year Treasury yield. According...
Stock Market Surge After Trump’s 2024 Election Victory, But Uncertainty Looms The stock market soared following Donald Trump’s victory in the 2024 U.S. presidential election. Investors cheered the result, pushing major indices to record highs. The Dow Jones Industrial Average climbed 4.6% during election week, the S&P 500 gained 4.7%,...
Fed Chair Powell: Economic Strength Lets Fed Take Cautious Approach on Rate Cuts Federal Reserve Chair Jerome Powell said Thursday that the strong U.S. economy allows the central bank to proceed cautiously in any potential interest rate cuts. Speaking to business leaders in Dallas, Powell noted, “The economy is not...
Investors are increasingly focused on the future of inflation, even as today’s consumer price index (CPI) report met expectations and didn’t cause major market jitters. The CPI release garnered attention, particularly as investors weigh the potential inflationary impact of policies anticipated under Donald Trump’s bid for a second term. “While...
Though stocks have recently enjoyed a strong run, Deutsche Bank strategists have highlighted that stock-market returns over the past 25 years haven’t been as impressive as they might seem. Their recent report notes that, since 2000, global markets have navigated rising debt levels, slower demographic growth, and a slowdown in...
