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Investors are finding success in old-school stocks in sectors like utilities, energy, and materials due to the booming demand for artificial intelligence (AI) technology. Companies are heavily investing in AI, benefiting chip makers like Nvidia and suppliers of power, labor, and raw materials. The utilities sector of the S&P 500 has outperformed other areas of the index, and energy and materials stocks have surpassed the broader market. Big-tech companies like Microsoft and Meta Platforms are spending billions on Nvidia's chips, and the government may also invest in AI. The Global X U.S. Infrastructure Development ETF has seen strong returns, and companies like Vertiv Holdings and Eaton have experienced significant stock growth. The Federal Reserve's potential interest rate cuts could further boost infrastructure stocks. Despite high valuations, the spending boom in AI means that industrial firms are considered less cyclical and have potential for profit growth. [Extracted from the article]

Stocks in the S&P 500 and Nasdaq reached new record highs, with the S&P 500 advancing 0.3% and the Nasdaq Composite rising 0.2%. The Dow Jones Industrial Average also gained 0.2%. The recent rally in stocks is attributed to investor confidence that inflation is easing and the Federal Reserve will cut interest rates. Strong corporate earnings have also contributed to the positive sentiment on Wall Street. However, some investors caution that high stock prices could make the market vulnerable to a sharp selloff if economic data takes a negative turn. [Extracted from the article]

Stocks ended the month of April on a low note, with the S&P 500 falling 1.6%, the Nasdaq Composite losing 2%, and the Dow Jones Industrial Average shedding 570 points. All 11 sectors of the S&P 500 finished the day in the red, resulting in the worst performance for the index since September. Data on worker compensation also suggested that inflation is still running higher than desired, which has dimmed hopes for interest-rate cuts. The Federal Reserve is expected to hold its benchmark federal-funds rate steady at its policy meeting, and April jobs data will provide further insight into the state of the labor market. [Extracted from the article]

Pension funds in the United States are shifting their investments away from stocks and into bonds or alternative investments. This move is driven by the desire to reduce risk and secure steady returns in a world of high interest rates. Large retirement funds are projected to unload $325 billion in stocks this year, up from $191 billion in 2023. This shift is seen as a positive development for the long-term stability of pension systems. [Extracted from the article]

The S&P 500 fell for the fourth consecutive session, extending an April selloff, as investors no longer expect imminent interest-rate cuts. The index's losing streak is its longest since the first week of 2024. The Nasdaq Composite and the Dow Jones Industrial Average also experienced declines. The shift in expectations is due to a strong economy and comments from Federal Reserve Chair Jerome Powell, causing bond yields to rise and stock prices to fall. However, despite the recent downturn, the S&P 500 and Nasdaq are still positive for the year. [Extracted from the article]

Some investors are concerned that future gains in the stock market may be more difficult to achieve due to weakening expectations of interest rate cuts by the Federal Reserve. Higher yields on government bonds make stocks less attractive and increase borrowing costs across the economy. Small-cap stocks, tech stocks, cyclical stocks, and banks are identified as areas of the stock market that may be vulnerable to higher rates. Oil-and-gas companies, on the other hand, have been performing well due to rising oil prices. [Extracted from the article]

Super Micro Computer and MicroStrategy, two stocks tied to artificial intelligence and cryptocurrency, have significantly boosted the Russell 2000 small-cap stock index. Super Micro's stock has surged 237% this year due to increased demand for servers that power generative AI capabilities, while MicroStrategy has advanced 156% due to the rising value of its cryptocurrency holdings. Together, these stocks have a combined market value of $84 billion and accounted for over a third of the Russell 2000's return in the first quarter. However, they are expected to depart from the index during its annual rebalancing in June. [Extracted from the article]

The S&P 500 index rose 0.1% and the Nasdaq Composite gained 0.2% after Federal Reserve Chair Jerome Powell reassured investors about potential interest-rate cuts. Powell stated that despite a strong economy, the central bank still expects rate cuts later this year. The Institute for Supply Management's non-manufacturing survey showed a slower pace of economic expansion in March. The U.S. economy added 184,000 jobs in March, according to ADP, and economists predict the Labor Department's March jobs report will show an addition of about 200,000 jobs. Despite strong jobs growth, hiring and quitting rates have decreased, making a rate cut more likely. Interest-rate derivatives traders have assigned a 62% probability of a rate cut at the central bank's June policy meeting. Bond prices rose and yields fell, with the 10-year Treasury yield settling at 4.354%. Disney shares fell 3.1% after CEO Bob Iger won a boardroom battle against activist investor Nelson Peltz, and Intel shares declined 8.2% after reporting a $7 billion loss in its chip-manufacturing arm last year. [Extracted from the article]

The overall personal-consumption expenditures (PCE) price index in the United States rose 2.5% over the 12 months through February, in line with economists' forecasts. Core prices, excluding food and energy prices, also rose 2.8%, as expected. Federal Reserve Chair Jerome Powell stated that officials need to see more inflation data before being confident in price growth returning to the central bank's 2% goal. The Fed has projected three interest-rate cuts this year, but the timing of these cuts remains uncertain. [Extracted from the article]

Investors are increasingly putting their money into derivative-income funds that sell options contracts in order to generate income and protect against potential losses. These funds primarily invest in stocks or major indexes and sell call options on those assets in exchange for an upfront payment. While these funds tend to perform well in a sideways market, they can miss out on potential gains during a big rally. The popularity of these funds has been attributed to investors seeking regular income or protection against losses, particularly as they near retirement age. However, there are concerns that these funds could contribute to market volatility, although some believe that the current option structure is relatively benign. [Extracted from the article]

The S&P 500 slipped below its record high due to a drop in tech shares, with the benchmark index falling 0.2% and the tech-heavy Nasdaq Composite dropping 0.5%. The decline was led by the information technology sector, particularly chip maker shares such as Intel and Advanced Micro Devices. Traders were still analyzing Tuesday's inflation data, which showed consumer prices rising slightly more than expected. However, most investors still anticipate the Federal Reserve to cut interest rates at some point this year. The S&P 500 is currently up 8.3% for the year. [Extracted from the article]

Healthcare stocks in the United States are performing well in 2024, with the S&P 500's healthcare sector experiencing its best start since 2017. This is unusual, as healthcare stocks typically underperform in election years. However, investors are less concerned about political factors this year, leading to increased investment in the sector. Factors contributing to the positive performance include an aging population, the approval of new drugs, and relatively low stock valuations. While some healthcare stocks, such as insurers UnitedHealth Group and Humana, have not performed as well, overall the sector is thriving. [Extracted from the article]

The Nasdaq Composite closed at a record high for the first time since 2021, with the tech-heavy index rising 0.9%. The S&P 500 also set a fresh record, advancing 0.5%, while the Dow Jones Industrial Average gained 0.1%. The Dow and S&P 500 had their best two months to start a year since 2019. Economic data did little to change the belief that policymakers can control inflation without causing an economic slowdown. Traders are now pricing in a 21% chance of a Federal Reserve interest rate cut in May. [Extracted from the article]

Nvidia, a graphics-chip maker, has become extremely popular among everyday investors, with its stock up 40% this year and adding $1.4 trillion in market value since 2023. Individual investors have invested $1.2 billion into Nvidia shares this year, surpassing other tech giants like Alphabet, Amazon, Apple, Meta Platforms, Microsoft, and Tesla. Nvidia's success is attributed to its capitalization on the enthusiasm for artificial intelligence technology, and its quarterly earnings report is highly anticipated. However, experts caution that Nvidia's persistent strength is unusual and past performance does not guarantee future success. [Extracted from the article]

U.S. retail sales experienced a larger-than-expected decline of 0.8% in January compared to the previous month, following a strong round of holiday shopping in December. Excluding auto sales, retail sales were down 0.6%, contrary to economists' expectations of an increase. While technical factors and adverse weather conditions may have contributed to the weakness, a decrease in consumer spending could indicate a weaker outlook for economic growth in 2024. However, other indicators such as the strong January jobs report suggest that the fundamentals for consumers remain solid. [Extracted from the article]

Stocks experienced a significant drop after an inflation report was released, raising concerns about the Federal Reserve's plans to cut interest rates. The Nasdaq Composite fell 1.8%, the Dow Jones Industrial Average declined 1.4%, and the S&P 500 fell 1.4%. This was the worst day for stocks on a release day for the consumer-price index since 2022. The report has caused some investors to question their more aggressive forecasts for interest rate cuts. [Extracted from the article]

Investors are adjusting their expectations for interest-rate cuts as stocks in the US market experienced a slight increase after a small decline. The Dow Jones Industrial Average rose by 0.4%, the Nasdaq Composite increased by 0.1%, and the S&P 500 advanced by 0.2%. Chip stocks, which have been performing well, saw a slight pullback. Recent developments, such as strong job growth and cautious statements from Federal Reserve Chair Jerome Powell, have caused some investors to question the previously expected rate cuts. While some investors are optimistic about the current state of the economy, others express concern about the sustainability of the recent rally and the potential vulnerability of stocks to negative news. [Extracted from the article]

Tesla's stock has been underperforming compared to other technology stocks, known as the "Magnificent Seven," which have been experiencing significant gains. Tesla's stock has fallen over 26% in the past four weeks and experienced a sharp decline after reporting earnings and revenue that missed expectations. The company's executives have warned that growth is likely to slow in 2024. Despite being a dominant player in the electric car market, Tesla's reputation as a tech leader is now working against its stock. [Extracted from the article]

Microsoft has become the second company ever to reach a valuation of over $3 trillion, driven in part by its investment in OpenAI and its focus on artificial intelligence (AI). Microsoft's CEO, Satya Nadella, has made smart bets on AI technology, partnering with OpenAI and incorporating its technology into Microsoft's products. This move has positioned Microsoft as a leader in the AI field. The success of Microsoft's AI strategy has helped the company surpass Apple in market value, making it the most highly valued publicly-listed company. However, there are concerns about a potential bubble forming around AI-driven stocks, and it remains uncertain how much new revenue the AI boom will generate for companies. Despite these uncertainties, Microsoft's early integration of AI into its products has been successful, with products like GitHub Copilot gaining popularity. Overall, Microsoft's success in the AI space reflects its ability to adapt to technological changes and maintain its position as a major player in the tech industry. [Extracted from the article]

The largest tech stocks, known as the Magnificent Seven, have once again rallied and pulled the S&P 500 to record highs. These stocks, including Google, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, and Tesla, have returned 4.4% so far this month and outperformed the S&P 500. Investors are pouring money into tech shares, with approximately $4 billion invested in tech funds in the past two weeks. The Magnificent Seven stocks more than doubled in value last year, adding a combined $5.1 trillion in market value. The group's size plays a significant role in the overall market, accounting for 28% of the S&P 500's market cap-weighted index. The belief that the Federal Reserve has successfully slowed inflation without causing a sharp economic slowdown has fueled this trade. The largest tech companies are attractive to investors due to their outsize profits and low debt. Additionally, the enthusiasm surrounding artificial intelligence has received a boost, with Taiwan Semiconductor Manufacturing Co. expecting a 20% revenue growth this year. However, Tesla, one of the Magnificent Seven, has been the group's biggest laggard, down 16% in January. Wall Street analysts recommend these stocks but expect slower gains, projecting an average return of 8.6% for the group over the next 12 months. Some investors believe the rally has pulled forward a lot of returns, while others see long-term potential in tech shares if artificial intelligence lives up [Extracted from the article]

Rising technology shares led to gains in major stock indexes, with the S&P 500 rising 0.9% and the Nasdaq Composite gaining 1.3%. The Dow Jones Industrial Average also advanced 0.5%, ending a three-session losing streak. The information-technology sector performed well, with chip stocks rallying after Taiwan Semiconductor gave a stronger outlook than expected. The strength of the economy has caused investors to reconsider expectations of aggressive interest rate cuts by the Federal Reserve. The yield on the 10-year Treasury note reached its highest level in 2024, while the average rate on the 30-year fixed mortgage fell to an eight-month low. [Extracted from the article]

Goldman Sachs reported a 51% increase in fourth-quarter profit, marking a turnaround after eight quarters of declines. The boost came from the asset and wealth management unit, which saw a 23% jump in revenue, while revenue from investment banking and trading was down. CEO David Solomon has been working to make the bank less reliant on these traditional powerhouses and more focused on managing money for individuals and companies. However, Goldman's full-year profit fell 24%, worse than most other big U.S. banks, and the challenge now is to sustain the success of the strong quarter. [Extracted from the article]

Microsoft briefly surpassed Apple as the largest U.S. company by market value before Apple reclaimed the top spot. Microsoft's stock has been on the rise due to the growth of its cloud computing division and optimism about artificial intelligence. Apple became the first company to reach a market value of $3 trillion last year, but investors and analysts are concerned about its future growth. Both Microsoft and Apple are expected to report their results in the coming weeks, and analysts anticipate further gains for Microsoft. [Extracted from the article]

The Dogs of the Dow investment strategy, which involves buying the 10 stocks with the highest dividend yields from the 30 Dow components at the beginning of the year, has not performed well in recent years. However, the recent rally in undervalued stocks has given hope to supporters of this contrarian strategy. The Dogs of the Dow approach is based on the idea that higher dividend yields often indicate low stock prices, and shareholders can benefit from both the dividend payments and potential stock price increases. This year's Dogs include healthcare companies like Johnson & Johnson and Amgen, as well as household names like Coca-Cola and IBM. While the strategy has returned an average of nearly 8.5% annually over the past 20 years, investors should be cautious of unsustainable dividend yields. [Extracted from the article]

The stock market in the United States had a weak start to 2024, with the Nasdaq, S&P 500, and Dow all falling more than 0.7% on Wednesday. Investors attribute this decline to the previous year's rally in stocks and bonds, which led to expectations that the Federal Reserve had finished raising interest rates. The key question now is whether the Fed will cut interest rates as much as investors anticipate. Economic data suggests a gradual cooling of the US economy, and upcoming data releases, such as the jobs report and inflation data, could have a significant impact on the markets. [Extracted from the article]

Wall Street is optimistic about the stock market in 2024, following a year of strong economic performance in 2023. Stocks rose throughout the year, driven by the rise of artificial intelligence and a stronger-than-expected economy. Investors believe that the Federal Reserve's campaign to fight inflation is winding down, leading to expectations of interest rate cuts. While there are risks on the horizon, such as economic shocks and geopolitical events, the overall sentiment is positive. Fund managers are bullish on stocks and predict lower bond yields. Corporate bonds are seen as attractive investments, and earnings growth is expected to pick up. However, some investors are skeptical of the big technology companies that dominated the market in 2023. Other sectors, such as financials, healthcare, and energy stocks, are considered attractively priced. The upcoming presidential election and potential shifts in fiscal policy also pose uncertainties. The major risk remains disappointment over interest rates, as the Fed's projections and market expectations differ. Overall, the market is expected to experience volatility, which presents opportunities for investors. [Extracted from the article]

The S&P 500 is on track for its longest weekly winning streak in almost 20 years, with all three major stock indexes set to gain for the ninth consecutive week. The S&P 500 is now within 0.3% of its all-time high, and the index has risen by 25% in 2023. The market's recent advance is fueled by optimism that the Federal Reserve can successfully manage inflation without causing a major economic slowdown. Year-end trading is also contributing to the market's upward momentum, as investors typically wait to sell stocks that have appreciated to avoid taxes. [Extracted from the article]

Stocks rebounded on Thursday, with the S&P 500 on track for its eighth consecutive week of gains. The benchmark index rose 1%, while the Nasdaq Composite advanced 1.3% and the Dow Jones Industrial Average gained 0.9%. All 11 sectors within the S&P 500 ended higher, with consumer-discretionary stocks performing the best. Investor confidence in a soft landing for the economy has increased, leading to a rally in stocks, bonds, and other assets. The rebound came after economic data showed that the Federal Reserve's preferred inflation indicator rose by 2% in the third quarter, indicating a gradual cooling of the US economy. [Extracted from the article]

Investors are currently experiencing a surge in various asset classes, including stocks, bonds, cryptocurrencies, and gold. This "everything rally" has sparked a debate about whether it signifies a lasting bull market or just a temporary surge at the end of the Federal Reserve's tightening cycle. Bond yields have dropped, leading to a broad rally across sectors that were previously struggling. The S&P 500 and Dow Jones Industrial Average have reached their highest levels of the year, while the Nasdaq Composite has seen significant gains. Cryptocurrencies like Bitcoin have also experienced a resurgence, and gold futures have reached a record high. Skepticism remains about the sustainability of this rally, with concerns about inflation and the possibility of a recession. However, many investors are optimistic about the Fed's ability to achieve a "soft landing" and control inflation without causing a major economic slowdown. [Extracted from the article]

The article discusses the recent underperformance of value stocks compared to big tech companies, driven by investor optimism about the potential of artificial intelligence (AI). The Russell 3000 Value Index has only returned 2% this year, lagging behind the Russell 3000 Growth Index by 32 percentage points. Large companies in the growth index, such as Nvidia and Meta Platforms, have seen significant gains, while several value stocks, including Chevron, Johnson & Johnson, Merck & Co., and Bank of America, have declined. The article highlights the historical trend of growth stocks outperforming value stocks and the impact of factors such as interest rates and the regional banking crisis. The outlook for both types of stocks is positive, with growth companies expected to increase per-share earnings by 14.3% next year and value shares expected to boost profits by 11.4%. Some investors are still betting on value stocks, while others expect the allure of growth stocks to continue attracting investors. [Extracted from the article]

Stocks solidified a fourth consecutive week of gains, with the S&P 500 rising 0.1% and the Nasdaq Composite falling 0.1%. The Dow Jones Industrial Average gained 0.3%. All three major indexes are on track for their best monthly performance in over a year. The yield on the 10-year U.S. Treasury note increased as bond prices fell. Traders are pricing in a 23% chance of the Federal Reserve cutting short-term rates at its March policy meeting. Healthcare was the top-performing sector, while communications services were the biggest laggard. Gold futures closed above $2,000 per troy ounce for the first time since May, and Bitcoin rose above $38,000. In overseas trading, Hong Kong's Hang Seng Index fell about 2% and the Shanghai Composite shed 0.7%, while the Stoxx Europe 600 rose 0.3% and Germany's Dax index gained 0.2%. [Extracted from the article]

Nvidia, a chip maker, has consistently exceeded Wall Street's expectations in its earnings reports. The company has benefited from the growing popularity of artificial intelligence (AI) technology, as its semiconductors are crucial to AI development. Nvidia's market cap has surpassed $1 trillion, and investors are eagerly awaiting its upcoming earnings report. Analysts are projecting high sales and profit figures, and the company's outlook will be crucial in determining the stock's reaction. However, some investors express concerns about the overwhelmingly positive sentiment surrounding Nvidia. [Extracted from the article]

Stocks continued to rally as investors grew more confident in a soft landing for the economy. The S&P 500 rose 0.2%, the Nasdaq Composite gained 0.1%, and the Dow Jones Industrial Average rose 0.5%. Producer prices and retail sales both fell, indicating a cooling economy and sparking hopes that the Federal Reserve's rate hikes may be winding down. The major indexes have risen sharply this week, with the S&P 500 advancing 7.4% and the Nasdaq Composite gaining 9.7% so far this month. Traders are pricing in a 100% chance that the Fed will leave its policy rate unchanged at the next two policy meetings. [Extracted from the article]

Investors who were optimistic about China's stock market at the beginning of the year are now becoming concerned. The lack of growth and increasing political tensions with the U.S. have led to poor returns and uncertainty. Investors have pulled $1.6 billion from China-focused funds in 2023, and the total net assets in those funds have decreased by one-third. The slumping housing market and the possibility of default by a major developer are contributing to China's lackluster economy. U.S.-listed companies that do significant business in China, such as Apple and Nvidia, have also struggled. [Extracted from the article]

Wsjfinance-markets, Pharmaceuticals, Airlines, Air Transport, Healthcare/Life Sciences, Hormone Products, Specialized Drugs/Medications, Transportation/Logistics, Diabetes Drugs, North America WSJ's Daniela Hernandez breaks down the science of how diabetes drugs work - and how they could change psychiatry forever. Keywords: wsjfinance-markets; Pharmaceuticals; Airlines; Healthcare/Life Sciences; Air Transport; Specialized Drugs/Medications; Hormone Products; Diabetes Drugs; Transportation/Logistics; North America EN wsjfinance-markets Pharmaceuticals Airlines Healthcare/Life Sciences Air Transport Specialized Drugs/Medications Hormone Products Diabetes Drugs Transportation/Logistics North America N.PAG N.PAG 1 11/06/23 20231102 NES 231102 Rise of new weight-loss drugs fuels wild predictions about impact on snack-food makers, airlines and more America leads developed nations when it comes to obesity. [Extracted from the article]

Stocks fell on Friday, concluding a week of losses for U.S. markets. The S&P 500 dropped 1.3%, the Nasdaq Composite declined 1.5%, and the Dow Jones Industrial Average fell 0.9%. The decline was attributed to a sharp increase in borrowing costs and concerns about escalating violence in the Middle East. Bond prices rose and yields declined, with the 10-year U.S. Treasury yield settling at 4.924%. Some investors are speculating that the bond selloff could reverse if economic data weakens or geopolitical tensions worsen. [Extracted from the article]

Morgan Stanley's third-quarter profit fell 9% due to a decline in deal making, with investment-banking revenue dropping 27%. Fees from advising corporate clients on mergers and acquisitions fell by more than 30%. Other banks, such as JPMorgan Chase, Citigroup, and Bank of America, reported either slight drops or gains in investment-banking revenue. Morgan Stanley's stock fell 6.8%, its largest one-day decrease since June 2020. The bank's CEO, James Gorman, expressed optimism for better revenue in 2024 once the Federal Reserve eases its campaign to raise interest rates. [Extracted from the article]

Goldman Sachs reported a 33% decline in profit for the third quarter due to losses from selling off parts of its consumer lending business and a drop in revenue in its asset and wealth management division. This marks the eighth consecutive quarter of profit decline for the bank. Goldman Sachs is narrowing its focus and pulling back from consumer lending, with the recent sale of specialty lender GreenSky and the unloading of its personal loans balances. The bank is now pinning its hopes for diversifying its revenue on its asset and wealth management business. Despite the decline in profit, Goldman Sachs beat analysts' expectations for earnings per share and revenue. Other big banks, such as JPMorgan Chase and Wells Fargo, have been reporting strong earnings, fueled by lending to households and commercial businesses. Goldman Sachs is also facing a slowdown in deal making, although there were some signs of improvement in the third quarter. The bank took several charges that resulted in a nearly $1 billion hit to pretax profits, including write-downs on older investments in the asset and wealth management unit and costs related to the sale of GreenSky. Overall, the charges reduced the quarter's annualized return on equity to 7.1%. [Extracted from the article]

Stocks rose for a third consecutive day, with the S&P 500 increasing by 0.5% and the Nasdaq Composite gaining 0.6%. This optimism is due to the belief that the Federal Reserve's efforts to raise interest rates may be coming to an end. The 10-year Treasury yield also fell sharply, marking its largest one-session drop since August. This reversal in yields may reduce the need for further action from the central bank. Investors are now awaiting economic data that could further support the idea of the Fed maintaining its current policy rate. [Extracted from the article]

Bank stocks have been struggling this year, with the KBW Nasdaq Bank Index falling 6.5% since mid-March. The index has underperformed the broader market by 37 percentage points in 2023, the widest annual gap on record. Rising interest rates have affected banks, forcing them to pay out more interest on deposits while returns from lending at higher rates have been slower to catch up. The uncertainty in the sector has reduced demand for bank stocks, and analysts predict that net interest margin, a measure of lending profitability, will decrease in the coming years. However, some investors believe that the stocks are currently undervalued and that profitability will not be permanently impaired. [Extracted from the article]