Published
4 months agoon
By
adminWall Street is warning clients not to bet against the stock market, with both central bank and corporate catalysts ahead. The market roared to all-time records on Friday as the release of September consumer inflation data overshadowed concerns around both tariffs and sky-high valuations. Now, traders are looking to the two-day Federal Reserve meeting and five earnings reports due this week from Magnificent Seven companies to see if stocks can push still higher. “Over the last two weeks we had a more cautious stance on markets,” JPMorgan’s trading desk wrote to clients early Monday. “While we did see a [volatility] spike and some churn, markets ultimately moved higher. Now, as we enter the bulk of Mag7 earnings with a series of trade deals expected to be formally announced this week, the setup is much cleaner.” Fed funds futures are pricing in a near certainty that the Federal Reserve will lower benchmark rates a quarter point, to 3.75% to 4.00%, at the end of policymakers’ meeting on Wednesday, according to the CME FedWatch tool. Investors will closely monitor Fed Chair Jerome Powell’s post-decision press conference, though they question if he will be able to provide an outlook for economic policy given that so much economic data has been delayed due to the four-week-old federal government shutdown. Alphabet , Meta Platforms and Microsoft all report earnings after the bell Wednesday, followed by Apple and Amazon on Thursday. “Calling it a ‘big week’ feels like an understatement,” Morgan Stanley’s research team said. After this week, however, so long as the government stays shuttered, Barclays’ sales and trading desk told clients there are few market catalysts until Nvidia reports earnings in mid-November. “Thanks to the government shutdown, this leaves the market with no catalysts … at a time where both systematic and discretionary positioning is under-risked vis-à-vis the level of” the S & P 500, Barclay’s team wrote. “You do not want to be short that positioning dynamic nor a quiet tape.” Similarly, JPMorgan said it is “tactically bullish” on the belief that the Magnificent Seven earnings due to be reported this week will exceed expectations. “We are removing our cautious tone,” traders at the nation’s largest bank said, “which ultimately proved to be the wrong call.” Stock futures jumped Monday morning amid rising hopes for a trade agreement with China. Barclays called a scheduled meeting Thursday between President Trump and Chinese President Xi Jinpeng in South Korea “crucial,” but said the outcome of the talks has been “derisked” following preliminary weekend negotiations between the two sides.
Hassett and Leavitt suggest limited data for October, clouding Fed and Wall Street outlook
This industrial giant is emerging as a big AI play, says Wells Fargo
Novo Nordisk’s strategy tested as investors push back on board revamp
Alibaba plans AI subscriptions, stablecoin-like payments with JPMorgan
UK borrowing costs spike on report government to scrap plans to raise income tax
Trump’s threatened the BBC with a $1B lawsuit: Here’s what’s going on
Wells Fargo sees Caterpillar continuing to roar higher, emerging as an artificial intelligence play. The bank initiated shares of...
Flags with the logos of Danish drugmaker Novo Nordisk, maker of the blockbuster diabetes and weight-loss treatments Ozempic...
Key Points Alibaba plans to use “tokenization” of payments for cross-border transactions in its business-to-business arm. Kuo Zhang, president...
Rachel Reeves, U.K. chancellor of the exchequer, delivers a speech in London, UK, on Tuesday, Nov. 4, 2025. Bloomberg...
US President Donald Trump speaks to reporters as he arrives at Palm Beach International Airport on Oct. 31,...
Investors looking for global diversification opportunities should look to a specific subset of stocks in Europe, according to UBS...
Eakarat Buanoi | Istock | Getty Images LISBON, Portugal — Top tech executives told CNBC they’re concerned about...
Tan Su Shan, deputy chief executive officer and managing director of institutional banking at DBS Group Holdings Ltd., speaks during...
CHENGDU, CHINA – OCTOBER 18: People walk past the Louis Vuitton store at Taikoo Li, a high-end shopping area that...
The United States said Thursday it will remove tariffs on some foods and other imports from Argentina, Ecuador, Guatemala and...
