Stock market today: Dow, S&P 500, Nasdaq waver amid earnings rush, Bessent confirmation hearing
Published On Jan 16, 2025, 1:34 PM
US stocks fluctuated on Thursday after a significant previous day's rise, driven by strong bank earnings and easing inflation data. Major banks like Bank of America and Morgan Stanley reported improved profitability, stimulating optimism. Retail sales were slightly below expectations, which might influence future interest rate decisions by the Federal Reserve. The confirmation hearing for Treasury Secretary nominee Scott Bessent also drew attention, particularly regarding his views on sanctions and economic policies under the upcoming Trump administration.
Stock Forecasts
XLF
Positive
The positive results from major banks indicate a revival in Wall Street, particularly in investment banking and trading divisions, suggesting that the financial sector could continue to thrive. If the Federal Reserve follows through on interest rate cuts, financial institutions may benefit.
QQQ
Negative
Concerns over Apple and Tesla's declining stock due to sales worries and discounts signify potential weakness in the tech sector. The drop in these stocks could influence investor sentiment towards technology stocks more broadly, underscoring a bearish outlook.
XLY
Negative
With retail sales growth slowing, there might be caution among investors regarding consumer discretionary stocks in the upcoming quarters. This could lead to a bearish outlook on consumer-related ETFs.
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