Wall Street Journal (April 28)
“The Magnificent Seven drove the stock market’s bull run. Now, their bruising losses pose a new test for markets.” Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia and Tesla “helped fuel a gangbusters rally that lifted stocks out of the 2022 bear market and toward dozens of all-time highs,” with their shares reaching “eye-popping levels.” Now, however, “the Magnificent Seven are off to their worst start to a year since the 2022 slide,” with each stock falling over 6.5%, collectively destroying “$2.5 trillion in market value.”
Tags: $2.5 trillion, 2022, Alphabet, Amazon, Apple, Bear market, Bruising, Bull run, Eye-popping, Gangbusters, Losses, Magnificent Seven, Meta, Microsoft, Nvidia, Rally, Stock market, Tesla, Value
Institutional Investor (March 12)
“February was a disaster for many biopharma, life sciences, and other health care hedge funds. Most lost money, several by double-digit rates, and as a result were in the red heading into March.” Whether the Trump administration will “slow down or pause the approval process for drugs currently in development” is making investors “jittery.” On top of that, “the stock market’s general volatility and sell-off have been especially rough on fledgling companies with little or no revenue and earnings — including this sector — exacerbating investor concerns.”
Tags: Approval process, Biopharma, Development, Disaster, Drugs, February, Health care, Hedge funds, Investors, Jjittery, Life sciences, Sell-off, Stock market, Trump administration, Volatility
Bloomberg (March 4)
A roller coaster day left the S&P 500 Index ”at its lowest level since Nov. 4, the day before Trump was elected…. The dizzying ride provided a preview of the difficulties facing investors, who now must figure out how to price American assets in what essentially amounts to a new world order created by Trump’s tariffs on China, Canada and Mexico.” The volatility and steep decline are “a comeuppance for those on Wall Street who bet big on Donald Trump’s election win, trades that powered the equity market higher along with the dollar and Treasury yields. The bet that Trump wouldn’t do anything to disturb the stock market rally has, for now, been lost.”
Tags: Assets, Canada, China, Comeuppance, Dizzying, Dollar, Investors, Mexico, New world order, S&P 500, Stock market, Tariffs, Treasury yields, Trump, Volatility, Wall Street
Washington Post (February 5)
“Freaked out by the prospect of a plunging stock market, President Donald Trump backed off his plan to slap 25 percent tariffs on goods from Mexico and Canada. He covered up his retreat with the assertion that his threat had prodded America’s neighbors into sending resources to combat drug trafficking at its borders — something, it turns out, they were already doing.”
Tags: 25%, Borders, Canada, Drug trafficking, Freaked out, Mexico, Plunging, Retreat, Stock market, Tariffs, Threat, Trump
Motley Fool (January 21)
“While Wall Street has been given plenty of reason to be excited about President Donald Trump’s second term, he’s also making ominous stock market history—and it should have investors concerned.” Prior to his inauguration, the S&P 500’s Shiller P/E was at 38.11, marking “the highest reading for an incoming president dating back to January 1871,” the earliest comparable data point. During that same 154-year timeframe, the average Shiller P/E was 17.19. “Inheriting one of the priciest stock markets in history might pave the way for a bear market or short-lived crash during his second term.”
Tags: 1871, Bear market, Crash, Inauguration, Investors, Ominous, Priciest, S&P 500, Second term, Shiller P/E, Stock market, Trump
Inc. (January 9)
“Everyone loves talking about the stock market, but the $28 trillion Treasury market is the fortuneteller of the pair—bonds are now flashing warnings of a Fed policy error, resurgent price pressures, and a ballooning debt pile.” Contrary to expectations, “bond yields have surged since the Fed began cutting interest rates.”
Tags: Ballooning debt, Bonds, Fed, Fortuneteller, Interest rates, Policy error, Price pressures, Stock market, Treasury market, Warnings, Yields
Fortune (November 17)
“For investors who’ve enjoyed the S&P 500 Index’s more than 50% jump since the start of 2023, the best hope for keeping the market rolling into 2025 and beyond may be Trump’s fear of doing anything to damage a rally.” Many of Trump’s campaign promises weren’t exactly “investor-friendly,” with some considered market anathema. Still, “Wall Street doesn’t believe Trump will tolerate a declining stock market, even if it’s caused by one of his own proposals.”
Tags: 2023, 2025, 50% jump, Anathema, Campaign promises, Damage, Fear, Hope, Investors, Rally, S&P 500, Stock market, Trump, Wall Street
Financial Times (September 27)
China’s biggest stimulus package since the pandemic has “supercharged markets, putting Chinese stocks on track for their best week since 2008.” The massive package boasts “billions of dollars from the central bank to support the stock market, policy rate cuts, measures to boost bank liquidity and efforts to stabilise China’s prolonged property crisis, including a 50-basis point interest rate cut for mortgage holders.” Nevertheless, it may not be enough “to reignite consumer confidence in the world’s second-largest economy.”
Tags: 2008, Central bank, China, Markets, Mortgage, Pandemic, Property crisis, Rate cuts, Stimulus, Stock market, Stocks, Supercharged
Fortune (September 5)
“JPMorgan joins a growing chorus of global firms downgrading their expectations for China’s stock market, following similar moves by former China bulls UBS Global Wealth Management and Nomura Holdings Inc. in the last few weeks. It signals exclusion of China is becoming a popular strategy for investors and analysts amid the country’s dimming prospects and the likelihood of better returns elsewhere.”
Tags: Analysts, China, China bulls, Downgrading, Exclusion, Expectations, Investors, JPMorgan, Nomura, Stock market, Strategy, UBS
New York Times (June 14)
“Bigger is better in the stock market these days.” In the S&P 500, the largest group of 50 companies by market cap, was the only group “to have positive returns over the 12 months through June 7” while the group of the 50 “smallest stocks in the index had the biggest losses.” Similarly, the S&P100, which features the largest constituents, “is up more than 17 percent” during 2024, while “the Russell 2000, which tracks the small-cap universe, is up less than 1 percent for the year.”
Tags: 2024, Constituents, Index, Largest, Market cap, Positive returns, Russell 2000, S&P 500, S&P100, Small-cap universe, Stock market
