Stock Market News Update

S&P 500 Digests Earnings Reports As predicted in our previous post, the FED rate cut announcement last Wednesday was a sell-the-news event in the S&P 500. The announcement on Thursday of a US-China trade deal did little to limit the correction, likely due to...

Upside Trend In S&P 500 The S&P 500 closed at an all-time high last week on the back of a better-than-expected CPI report and the expectation that the FED will cut interest rates this week. The trend in the S&P 500 remains to the upside, and the advanced...

Are AI Valuations Justified? AI-related stocks in the U.S. may be approaching bubble territory, but opinions are sharply divided among experts. Some analysts warn of overvaluation and speculative excess, while others argue that strong fundamentals justify current...

AI Underpins U.S. Economic Growth Capital expenditure expectations for both AI investment and energy usage over the next couple of years exceed $1 trillion. The hyperscaler infrastructure build-out is contributing 1.5% to the U.S. GDP. In the first quarter of 2025,...

S&P 500 Momentum Short-Lived The S&P 500 gaped up at the open on Friday on the back of the jobs data. However, the upward momentum was short-lived as institutions continued the recent trend of selling into retail momentum. Within 20 minutes of the opening, the...

S&P 500 Rotation Back in September 2024 we made the following observations with regard to the S&P 500: Over the last three weeks, stock performance in the S&P 500 has noticeably shifted. Magnificent 7 stocks have stalled and the other 493 stocks in the...

Bank Of England In The Spotlight Last week, Ed Conway at Sky News noted that while the Bank of England had just cut interest rates, the borrowing costs were not falling. More specifically, borrowing costs were rising. Ed noted that the UK 30-year government bond yield...

S&P 500 Grinds Higher The S&P 500 reversed sharply to the upside on Friday after Jerome Powell's Jackson Hole speech was more dovish than expected. Powell indicated that the labour market weakness warrants interest rate cuts. The recent Nonfarm Payroll report,...