Stocks market kickoff: Wall Street initiates with a smooth flow; Bitcoin, Oracle, Boeing, GameStop, Mara Holdings, Oklo, Centrus Energy, Apple in focus.
Stock markets in the US are gearing up for potential losses on Thursday, with estimated drops for both the Dow Jones Industrial and the tech-heavy Nasdaq 100. IG predicts a 0.4% slide for the Dow Jones Industrial, landing at 42,702 points, and a 0.2% dip for the Nasdaq 100, at 21,813 points.
Investors are treading cautiously, as progress in the U.S.-China trade dispute remains limited. Despite this, President Trump's plans to impose tariffs on multiple trading partners in the near future has caused a ripple of uncertainty. Meanwhile, China remains silent following Trump's announcement of easing export restrictions.
However, new inflation and employment data have provided a modestly positive impact on stock prices. It's important to note that the US stock market is currently trading at a 3% discount to fair value, indicating a somewhat neutral stance but with elevated volatility due to geopolitical tensions and economic uncertainties.
The market is expected to stay within a trading range for the next 6 to 12 months, with the S&P 500 possibly fluctuating between lows around 4,835 and highs near 6,000. This rangebound outlook could affect both the Dow Jones and Nasdaq indices.
Positive earnings growth is projected for 2025, but could be tempered by potential downward pressure on stock valuations due to interest-rate dynamics. The Federal Reserve's future actions, specifically whether they include interest rate cuts, will be crucial to market performance.
The implementation or delay of tariffs can greatly influence market performance. Fiscal policies, including possible fiscal stimulus, could offer a safety net, shielding the market from significant downside risks.
While specific projections for the Nasdaq 100 and Dow Jones Industrial Average are not detailed in the current forecasts, their performance will likely mirror the broader market trends and economic factors mentioned above.
In summary, while the stock market is relatively calm at the moment, authorities are bracing for enhanced volatility due to ongoing geopolitical and economic challenges. Both the Dow Jones Industrial and Nasdaq 100 are expected to reflect these broader market trends.
Investors may need to consider adjusting their finance strategies in light of the uncertain business environment, as potential losses in various stock markets, including the Dow Jones Industrial and the Nasdaq 100, could be influenced by factors such as trade disputes, tariffs, and interest-rate dynamics. The performance of these indices might also be related to emerging technological advancements and their impact on the economy.
