The U.S. stock market is experiencing complex reversals as inflation rises, tariffs raise concerns, and bank earnings reports are inconsistent.
The instability on Wall Street stems from positive June inflation data but triggers tariff fears from President Trump, while major banks do not provide clear signals for investors.
MAIN CONTENT
The June inflation data raises concerns that tariffs could increase consumer prices.
The Q2 earnings report from major banks is not strong enough to boost the market.
The Nasdaq index rises thanks to technology stocks, while the Dow Jones and S&P 500 indices decline slightly.
How does June's inflation information affect the market and tariffs?
The U.S. June inflation data recorded a 0.3% increase compared to the previous month, bringing the annual increase rate to 2.7%, as predicted by Dow Jones. However, the core CPI increased by 0.2%, lower than expected, and the annual core rate is 2.9% as anticipated. But major concerns arise from the decision to impose a 30% tariff on imports from the European Union and Mexico starting August 1.
Matthew Ryan, the Chief Strategist of Ebuy, assesses that the inflation report shows the price increase effect from President Trump's tariffs has begun to spread since June. He warns that the actual impact level has yet to be reached and forecasts that subsequent price increases may appear in August.
"The June inflation report confirms that President Trump's tariffs are causing consumer prices to rise, and the long-term impact could be even greater."
Matthew Ryan, Chief Strategist of Ebuy, 2024
Skyler Weinand, Chief Investment Officer of Regan Capital, agrees that tariffs will exert inflationary pressure, while also indicating that the CPI index did not bring major surprises to the market, somewhat easing current concerns.
How do the earnings reports from major banks affect investor sentiment?
The Q2 earnings season for banks shows inconsistent results, leaving investors uncertain. Wells Fargo exceeds earnings expectations but its stock drops more than 4% due to lowering the net interest income forecast. JPMorgan Chase shows strength with earnings exceeding expectations thanks to trading and investment banking, but its stock still declines slightly.
BlackRock is a notable case as its stock fell more than 6% due to missing revenue expectations, even though CEO Larry Fink appeared on CNBC to reassure investors. Mr. Fink stated that the current high costs are due to strategic investments and he remains optimistic about BlackRock stocks in the long term.
"People are worried about our high costs, but that's the initial investment. I am still a significant buyer of BlackRock at the current price."
Larry Fink, CEO of BlackRock, 2024
Meanwhile, Citigroup is a bright spot with its stock rising about 1% due to Q2 business results exceeding expectations.
According to FactSet, analysts forecast S&P 500 earnings growth of only 4.3% in Q2 – the lowest since Q4 2023, indicating a low likelihood of positive earnings surprises. This causes Wall Street to oscillate between concerns that inflation may rise again and a weak earnings season.
How do data and reports impact major stock indices?
The Dow Jones index fell by 313 points, or 0.5%, while the S&P 500 decreased slightly by 0.1% despite reaching a historical peak earlier in the session. In contrast, the Nasdaq Composite increased by 0.5%, boosted by Nvidia shares rising more than 4% after news that it will soon resume exporting H20 graphics cards to China.
The attraction of technology stocks for capital flow amid other sectors moving sideways shows a clear market differentiation. This reflects the inconsistency in economic data and corporate results, making it difficult for investors to choose an appropriate strategy.
What factors is the market considering and forecasting for the near future?
Wall Street is struggling to analyze signals from inflation, tariffs, and earnings reports simultaneously. Rendell Capital analyzes that many investors are concerned that new tariffs could increase consumer price pressure while earnings signals are not strong enough to offset that. Moreover, market indices are close to record highs, creating risks of disruption.
There is no consensus on the market's next trend. Experts predict that fluctuations will continue as economic data and policies become complex, and investors should prepare for an unclear market.
Frequently Asked Questions
Does June inflation create price increase pressure?
This is very likely as new tariffs cause import prices to rise, according to expert Matthew Ryan.Why did bank earnings not help the stock market rise?
Many banks, despite exceeding expectations, provided cautious forecasts or missed revenue, reducing investor confidence.Why did the Nasdaq rise while the Dow Jones and S&P 500 fell?
The Nasdaq is supported by technology stocks like Nvidia, while other major indices lack clear momentum.Why did BlackRock's stock drop?
The quarterly revenue did not meet expectations, although CEO Larry Fink maintains a positive long-term outlook.What does the market expect in the near future?
Investors need to monitor additional inflation and earnings data to assess clearer trends.
Source: https://tintucbitcoin.com/nha-dau-tu-lo-lam-phat-loi-nhuan/
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