Stock Market's S&P 500 Index Prolongs Monthly Victory Streak to Four, Suffering a Red Closing Today
In a week marked by economic updates and geopolitical developments, the stock market today has shown a risk-off mood. This shift was further intensified by updates regarding President Donald Trump's threats to interfere with the Federal Reserve's independence, causing concern among Wall Street investors. Despite the turbulent atmosphere, the S&P 500 still managed to achieve a fourth consecutive monthly gain. The index closed at 6,460.26 on Friday, marking a 0.64% decrease. The Nasdaq Composite ended the week with a 1.15% decrease, closing at 21,455.55. The Dow Jones Industrial Average, too, showed a slight decrease, ending at 45,544.88 with a 0.20% decrease. One of the key factors contributing to the stock market today's cautious stance is the potential impact of tariffs on major corporations. Caterpillar, for instance, warned it could lose between $1.5 billion and $1.8 billion this year due to President Trump's tariff plans, causing its shares to drop more than 3%. Similarly, Gap stated that tariffs will negatively impact its profit outlook. The data for Core PCE inflation was in line with estimates but caused market jitters, as it rose to 2.9% in July, the highest since February. This increase in inflation, coupled with Trump's repeated attacks on the Fed, has led to a gold rally. Gold futures are near $3,473, with Bank of America increasing its average gold price estimate for the next six years by 6%, to $3,049 per ounce. The bank's analysts attribute the gold rally to four factors: the U.S. structural deficit, inflation from deglobalization, Trump's repeated attacks on the Fed, and rising geopolitical risks. However, not all news was negative. Alibaba's U.S.-listed shares surged about 13% due to the development of the more advanced chip. This positive development, along with Jason Fairclough's increased gold futures forecast by 6%, setting a short-to-medium term target of $4,000 per ounce and a long-term target of $3,049 per ounce, provides a glimmer of optimism in an otherwise uncertain stock market today.
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