Fortune (July 5)
“In a note on Tuesday” Bank of America “analysts reaffirmed their year-end price target of 7,100 for the broad market index, representing a 5% drop from the week’s closing level.” Citing “extreme levels” of speculation, BoA believes the market is poised for a “snapback,” also noting “that S&P 500 companies are generating less free cash flow relative to net income compared to historical trends. That’s as so-called hyperscalers have seen their free cash flow plunge due to massive spending on the AI boom, eroding their earnings.”
Tags: AI boom, Analysts, BoA, Broad market, Earnings, FCF, Historical trends, Hyperscalers, Index, Net income, Note, Price target, S&P 500, Snapback, Speculation, Spending
Market Watch (March 1)
“Market participants came into 2024 looking for six or more quarter percentage point interest rate cuts by the Federal Reserve, but now see only three. They should further revise that all the way down to zero,” based on a note, released Friday, from Torsten Slok, Apollo Global Management’s chief economist.
Tags: 2024, Apollo Global Management, Economist, Fed, Interest rate cuts, Market, Note, Participants, Quarter percentage point, Six, Slok, Three, Zero
