Current S&P 500 valuation is not leaving 'any margin for error' - JPMorgan

Dow Jones, Nasdaq, S&P 500 weekly preview: Can this rally hold?

December 4, 2023 9:12 AM EST

The S&P 500 (SPX) recorded its fifth consecutive candle last week (+0.8%), matching the May-June streak. The index is now testing the 2023 highs around 4600. A break above this level would pave the way towards the record highs around 4800 while a failure would increase the risk of a double top pattern.

The Dow Jones Industrial Average (DJI) added as much as 2.4% with the index now up more than 12% since October lows. This marks the biggest 5-week gain since last October. The DJI ended the week at 36245 as bulls eye a new record high above 36952. Finally, the Nasdaq Composite Index (IXIC) rose... More

Analyst who correctly predicted 2023 rally gives his S&P 500 forecast for next year

December 4, 2023 8:23 AM EST

The S&P 500 is having an incredible year. The benchmark U.S. stock market index is up 19.7% on the year as bulls test the resistance around 4600.

For Stifels Barry Bannister, known for accurately predicting the rally in the first half of 2023, this rally has largely played out.

Bannister upgraded his mid-2024 price target for the... More

Morgan Stanley warns clients to prepare for a volatile December

December 4, 2023 8:10 AM EST

Morgan Stanley equity strategists led by Michael Wilson warned clients about potential volatility in the stock markets this month due to fluctuating rates.

Following November's significant rally, stocks are reflecting the expectations that the Federal Reserve can implement rate cuts next year as inflation decreases within the... More

Powell says Fed to move 'carefully' on interest rates, 'soft landing' taking shape

December 1, 2023 11:03 AM EST

By Howard Schneider

ATLANTA (Reuters) -The risks of the Federal Reserve slowing the economy more than necessary have become "more balanced" with those of not moving interest rates high enough to control inflation, Fed Chair Jerome Powell said on Friday, reaffirming the U.S. central bank's intent to be cautious but also offering fresh optimism on its progress so far.

Noting that a key measure of inflation averaged 2.5% over the six months ending in October, near the Fed's 2% target, Powell said it was clear that U.S. monetary policy was slowing the economy as expected with a benchmark... More

Bank of America's indicator sees S&P 500 rallying to 5300 by the end of 2024

December 1, 2023 6:42 AM EST

Bank of Americas Sell Side Indicator (SSI), a contrarian sentiment gauge tracking sell-side strategists' average recommended equity allocation, increased to 53.6% last month, rising by 56 basis points.

This uptick follows the S&P 500's nearly 9% rally in its best month since July 2022, according to the banks quant strategist Savita Subramanian.

Despite the increase, the SSI is only 1.1... More