Goldman suggests optimistic outlook for stocks

by / ⠀News / October 30, 2024
Goldman suggests optimistic outlook for stocks
Goldman suggests optimistic outlook for stocks
The S&P 500 climbed 0.3% on Monday. The Russell 2000, which tracks small caps, started the week up 1.6%. The Nasdaq 100 ended the day flat. Most major S&P 500 sectors advanced, aside from technology and energy. Energy sector ETFs fell 0.6%, with companies like APA Corporation and Diamondback Energy losing more than 3% following a significant decline in crude oil prices after an anticipated Israeli strike on major Iranian oil facilities. Financials and materials sectors led gains among major S&P 500 groups. Shares of mega-cap tech companies were mixed, with many set to report earnings this week. Rising longer-term Treasury yields reached their highest levels since early July. Similarly, the Japanese yen weakened against the dollar following the recent election. In related news, Trump Media & Technology Group, the parent company of Truth Social, experienced a significant rally. More than 105 million shares changed hands, surpassing previous trading records and achieving a market capitalization of $9.48 billion. This surge in trading volume and value came amid a broader market rally.
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Keep an eye on significant earnings reports from major technology companies later this week, which could further influence market directions.

Optimistic outlook amid market volatility

Financial advisory firm Oppenheimer suggests that a post-election relief rally could be on the horizon for stocks, as stated in a recent report. Despite recent volatility and market pullbacks throughout 2024, the firm maintains a positive outlook on equities. The strategists at Oppenheimer highlight that the market has navigated significant volatility this year. However, they note that the pullbacks experienced so far appear to be minor corrections rather than indications of a bear market. Investors have often found reasons to take near-term profits without the fear of missing out, maintaining what Oppenheimer sees as a largely intact bull market. A key factor driving this optimistic view is the Federal Reserve’s success in managing inflation. The investment bank notes that the Fed’s commitment over 21 policy meetings to reduce inflation has helped support the economy and market sentiment. Additionally, resilient corporate earnings, strong job growth, and robust consumer activity have contributed to expectations of a soft landing for the US economy. Looking ahead, Oppenheimer acknowledges the uncertainties surrounding the upcoming US presidential race. The firm emphasizes that the contest remains tight, with both potential upside and downside risks influencing the market as Election Day approaches.
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Following the election, the market is likely to show some relief as the outcome becomes clear, which may then shift focus to the opportunities and risks associated with post-election policies. Sector-wise, Oppenheimer favors technology, communications services, consumer discretionary, financials, and industrials. The firm also anticipates that small and mid-cap stocks may begin to experience more sustainable rallies, especially following the Fed’s recent dovish policy shift. Oppenheimer continues to monitor the evolving economic landscape, offering insights and strategies to navigate the complexities of the market as it looks towards the potential relief post-election.

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