50bps point cut from the Fed would be 'a little desperate,' strategist says

Ahead of interest rate cuts expected next week, Sound Income Strategies co-CIO Eric Beyrich joins Julie Hyman and Josh Lipton on Market Domination. Beyrich says next week’s cuts will likely be 25 basis points as a 50 basis-point cut from the Federal Reserve would “would be a little desperate” and “signal that they're behind the curve.” At next week’s Fed meeting, Beyrich tells Yahoo Finance he will “pay attention to what they say and what they do,” as well as looking “at the other economic data that come along with it.” For more expert insight and the latest market action, click here to watch this full episode of Market Domination. This post was written by Naomi Buchanan.

These sectors stand to benefit most from Fed's rate cut

Investors eagerly await a potential interest rate cut from the Federal Reserve at its September FOMC meeting next week, but uncertainty could likely persist in markets . AlphaSimplex Chief Research Strategist and Portfolio Manager Katy Kaminski joins to discuss her market outlook in light of this expected fiscal policy shift. Kaminski notes that the rate cut debate has shifted between 25 to 50 basis points. She emphasizes that "the jury is still out," but regardless of the cut's size, "the Fed is changing course," which will impact various aspects of the economy, presenting "both an opportunity and a challenge for investors." According to Kaminski, sectors like borrowing, real estate, and consumer staples stand to benefit from a rate cut. She also anticipates a market rotation away from sectors such as tech. However, she cautions investors that the fight against inflation isn't entirely over. "I think we're going to have to watch for the potential that inflation will go up in the future. And we need to think about sectors and areas of our portfolios and our investments that will be actually accretive during an inflationary period. Gold (GC=F) is a good example," Kaminski tells Yahoo Finance. For more expert insight and the latest market action, click here to watch this full episode of Wealth! This post was written by Angel Smith

Mag 7 growth will decelerate, broaden to S&P 493: BofA Chart

The Magnificent Seven — the grouping of tech stocks Meta Platforms (META), Microsoft (MSFT), Alphabet (GOOGL, GOOG), Amazon (AMZN), Apple (AAPL), Nvidia (NVDA), Tesla (TSLA) — has been a tremendous growth driver for the S&P 500 (^GSPC), particularly in 2024. But is it about time for this growth trend to broaden out to other corners of the market? Yahoo Finance anchor Madison Mills dissects Bank of America's forecast of where it sees growth drivers reaching the other 493 names in the S&P a year from now. For more expert insight and the latest market action, click here to watch this full episode of Morning Brief. This post was written by Luke Carberry Mogan.

Stock market today: Stocks end banner week with big gains as jumbo Fed cut odds rise

The stage is set for strong weekly wins after Wall Street's expectations for a 0.5% rate cut by the Fed shot up.

AI spending, Microsoft layoffs: Asking for a Trend

On today's episode of Asking for a Trend, Host Josh Lipton breaks down the biggest stories and trends from the trading day. Nvidia's (NVDA) latest earnings highlighted a major issue for the AI trade; despite beating earnings expectations, investors were disappointed as they looked for significant returns on massive capital expenditures (CapEx). RBC Capital Markets Internet Analyst Brad Erickson explains that investors are in a position where they have to put "blind faith" into AI players, knowing that it will pay off in the future. He tells Yahoo Finance, "From my perspective, like we're taking a little bit more of a measured approach, saying, 'Look, $200 billion. Think about what you need to do to maintain operating margins.' Pretty simple math of, like, are we really talking about $300, $400 billion of marginal revenue every single year? Those are big numbers." Microsoft (MSFT) is cutting about 650 employees from its Xbox gaming unit, the latest move in a string of layoffs that have impacted the video game industry. Wedbush Securities Managing Director, Equity Research Michael Pachter points out that in Microsoft's case, these jobs are redundant, stemming from its acquisition of Activision Blizzard last year. As for the broader industry, he said hiring increased during the pandemic when people were at home playing video games. Now, these companies are "right-sizing," though Pachter thinks they may be cutting too many jobs. Yahoo Finance Senior Reporter Alexandra Canal breaks down the biggest takeaways from Thursday's trading session. Meanwhile, Market Domination anchor Julie Hyman reviews data from the Federal Reserve Bank of America which found home ownership affordability sentiments to have fallen to an 18-year low, equal to levels last seen in 2006. Finally, Josh Lipton covers some of the biggest after-hours movers, from Adobe (ADBE) to RH (RH). This post was written by Melanie Riehl

Stocks pricing in Fed rate cut, gold and oil: Market Takeaways

The S&P 500 (GSPC) and Nasdaq (^IXIC) have jumped for four consecutive days, led by tech stocks. August's Producer Price Index came in line with expectations as inflation continues to cool ahead of the Federal Reserve's first interest rate cut. Meanwhile, gold (GC=F) prices hit another record high and crude oil (CL=F, BZ=F) moves 3% higher. Yahoo Finance Senior Reporter Alexandra Canal breaks down the biggest takeaways from Thursday's trading session. For more expert insight and the latest market action, click here to watch this full episode of Asking for a Trend. This post was written by Melanie Riehl

Size, speed of rate moves in focus as Fed poised to start cuts

The Federal Reserve is in focus next week, as uncertainty swirls over how much the U.S. central bank will cut interest rates at its monetary policy meeting and the pace at which it will reduce borrowing costs in coming months. The S&P 500 index is just 1% shy of its July record high despite weeks of market swings sparked by worries over the economy and seesawing bets on the size of the cut at the Fed's Sept. 17-18 meeting. After fluctuating sharply throughout the week, Fed funds futures on Friday showed traders pricing an almost equal chance of a 25 basis point cut and a 50 basis point reduction, according to CME Fedwatch.

Equities Rise Ahead of Next Week's Fed Decision; Nasdaq Logs 6% Weekly Gain

Equities Rise Ahead of Next Week's Fed Decision; Nasdaq Logs 6% Weekly Gain

Dow Jones Futures: Market Rally Roars, 25 Stocks In Buy Zones; Will Fed Go For Big Rate Cut?

The market roared back to life this past week, with dozens of stocks entering buy zones. Will Powell go for a big Fed rate cut on Sept. 18?

S&P 500 Posts Weekly Gain Ahead of FOMC Meeting; Tech Leads Climb Amid Upbeat Oracle Guidance

S&P 500 Posts Weekly Gain Ahead of FOMC Meeting; Tech Leads Climb Amid Upbeat Oracle Guidance

Wall Street Refuses to Kick Risk Addiction in Big Bet on the Fed

(Bloomberg) -- Time and again, Wall Street’s risk-taking brigade has turned a deaf ear to Federal Reserve policy machinations and shifting economic sentiment in the bond market.Most Read from BloombergHousing’s Worst Crisis in Decades Reverberates Through 2024 RaceUS Driving and Congestion Rates Are Higher Than EverFrom Louisville, a Push to Plant Trees for Public HealthAn Affordable Nomadic Home Design Struggles to Adapt to Urban LifeFor Tenants, AI-Powered Screening Can Be a New Barrier to Hou

Stock Rotation Is Back on Bets Fed Will ‘Go Big’: Markets Wrap

(Bloomberg) -- Wall Street traders revived prospects for a half-point Federal Reserve rate cut this month, driving stocks to their best week in 2024 amid a rotation into companies that would benefit the most from policy easing.Most Read from BloombergHousing’s Worst Crisis in Decades Reverberates Through 2024 RaceUS Driving and Congestion Rates Are Higher Than EverFrom Louisville, a Push to Plant Trees for Public HealthAn Affordable Nomadic Home Design Struggles to Adapt to Urban LifeFor Tenants

Equities Rise Ahead of Next Week's Fed Decision

Equities Rise Ahead of Next Week's Fed Decision

How major US stock indexes fared Friday, 9/13/2024

Nasdaq, S&P 500 Make It 5 Straight Gains; Small Caps Lead As Index Clears Important Level (Live Coverage)

The Nasdaq composite and S&P 500 are looking for their fifth straight day of gains on Friday. Uber stock jumped on the stock market today.

Boeing Stock Skids As First Strike In 16 Years Points To More 737 Max Delays

Boeing stock tumbled Friday after about 19% of its workers went on strike, delaying jet production. It's the Dow giant's first since 2008.

The S&P 500 Had A Different Kind Of Expectation Breaker This Week

After two negative expectation breakers in a month, it was nice to see the market break expectations the other way.

S&P 500, Nasdaq Mark Best Weeks of 2024. Investors Hold Onto Half-Point Rate Cut Hopes.

The S&P 500 capped off its best week of the year on Friday, as traders held onto hopes for a half-point interest rate cut next week. The Dow gained nearly 300 points, or 0.7%. The Nasdaq Composite rose 0.7%.

Nvidia's stock market dominance fuels big swings in the S&P 500

Nvidia's huge stock rally is still exerting an outsized influence over the S&P 500 index , reinforcing concerns that broader markets could be hurt if the chipmaking giant's fortunes turn. This year's 140% surge in shares of Nvidia, whose chips are seen as the gold standard in artificial intelligence applications, has accounted for about a quarter of the S&P 500's 17% gain. Nvidia showed its powerful hold over Wall Street on Wednesday, when the stock's 8.2% rally helped drive the S&P 500 to its biggest intraday upswing in nearly two years.

5 Stocks to Benefit From Relative Price Strength Trends

LMB, UI, RCL, DVA and BOOT are five stocks with explosive relative price strength.