Closing: S&P and Nasdaq hit new highs, many brokerages raised S&P expectations

Special topic: A-share market recovery is expected to continue the value style or continue to outperform growth. Check the latest market [Related reading] The Nasdaq S&P hit a record high. U.S. oil returned to US$80 and important technology ETFs were rebalanced. Nvidia will welcome tens of billions of dollars to buy .Apple\’s weight was slashed, and the Nasdaq and S&P 500 indexes. Microsoft and Apple hit record highs! AI seller’s market value surged by 1.2 trillion yuan in 5 days. Huang Renxun once again reduced his holdings of Nvidia stock! In the early morning of the 18th, Beijing time, U.S. stocks closed higher on Monday.
The Dow ended its previous four consecutive sessions of losses.
The S&P 500 and Nasdaq hit new all-time highs.
Goldman Sachs and Citigroup have successively raised their forecasts for the S&P Index.
Several Federal Reserve officials will speak this week. The market will pay attention to their statements on the outlook for interest rates.
The Dow rose 188.94 points, or 0.49%, to 38778.10 points; the Nasdaq rose 168.14 points, or 0.95%, to 17857.02 points; the S&P 500 rose 41.63 points, or 0.77%, to 5473.23 points.
This Wednesday (June 19) is the Juneteenth National Independence Day in the United States. The U.S. stock market will be closed on this day.
U.S. President Biden officially approved the addition of this new federal holiday in 2021 to commemorate the emancipation of enslaved African Americans in the United States.
The three major U.S. stock indexes had mixed gains and losses last week. The Dow Jones Industrial Average recorded its third weekly decline in four weeks.
Driven by AI and large technology stocks, the S&P and Nasdaq hit record highs and recorded their seventh weekly gain in the past eight weeks.
Goldman Sachs and other institutions have successively raised their expectations for the S&P 500 Index. Goldman Sachs analysts raised their year-end target for the S&P 500 Index from 5,200 points to 5,600 points.
They said: Our earnings expectations for 2024 and 2025 remain unchanged. But strong earnings growth among the five largest technology stocks offset the typical pattern of negative revisions to consensus EPS estimates.
Goldman Sachs pointed out that although U.S. stocks have been hitting new highs, U.S. economic growth expectations are too optimistic. What is most easily overlooked is the financial deterioration and consumption decline of middle and low-end consumers.
Although inflation is easing, price levels remain challenging for consumers.
Evercore ISI raised its year-end forecast for the S&P 500 to 6,000.
The agency said that by the end of 2024, the index will see double-digit gains again.
Evercore ISI institutional analysts pointed out that market optimism has pushed the S&P 500 index up 14% this year. The subsidence of inflation and the artificial intelligence boom will push U.S. stocks further higher.
Citi strategists raised their year-end target for the S&P 500 to 5,600 points from the previous 5,100 points. They became the third Wall Street firm to raise their forecasts for the benchmark index since Friday, following Goldman Sachs and Evercore ISI.
Strategists led by Scott Chronert wrote in a note to clients on Monday that continued earnings revisions and expansion of profit growth into non-tech stocks prompted the target increase.
Citi analysts raised their full-year earnings per share forecast to $250 from $245.
The mid-year and full-year targets for the S&P 500 Index in 2025 are set at 5,700 points and 5,800 points respectively. The S&P 500 Index earnings per share in 2025 is estimated to be $270.
Shannon Saccocia of NB Private said: There are only two themes in the market right now that investors really want to participate in this year. One is the long-term artificial intelligence theme. The other is the return of manufacturing and – frankly – a continued strong economy. increase.
This week, the market will pay attention to the speeches of Federal Reserve officials and economic data. This week, investors will release May retail sales data on Tuesday. As well as housing sales and new housing starts data to be released later this week.
Lennar, Kroger, Darden Restaurants and CarMax will report earnings this week.
At least 10 Fed policymakers will speak this week, including Dallas Fed President Logan, Chicago Fed President Goolsby and Fed Governor Coogler.
Markets will be watching what these officials say about the outlook for interest rates this year.
Although the Federal Reserve sent a hawkish signal last week, three sets of mild inflation data led the futures market to predict a 76% chance of a rate cut in September. The chance of a 50 basis point rate cut within the year was 50%.
Economic data on Monday. Manufacturing activity in New York state shrank less than expected in June. At the same time, an indicator of prices received by producers fell to an almost one-year low.
The New York Fed\’s overall business conditions index rose 9.6 points to -6.
An index below zero indicates contraction.
The median forecast among economists surveyed was -10.
The state\’s measure of prices received by manufacturers fell 7 points to 7.1, while a measure of prices paid for raw materials fell to its lowest level since the start of the year.
At the same time, the six-month outlook index for overall activity jumped 15.6 points to 30.1, the highest since March 2022. It shows that the state\’s producers are more optimistic about the economic outlook.
The outlook for both orders and shipments is stronger.
Manufacturing conditions in New York State remained weak in June. Richard Deitz, economic research adviser to the New York Fed, said in a statement that despite the poor conditions, optimism about the six-month outlook rose to the highest level in two years.
Over the past two years, this data has fluctuated greatly in a single month.
Against the backdrop of weak demand and high interest rates curbing new investment, broader U.S. manufacturing indicators have been shrinking in all but one month since October 2022.
Investors are also paying attention to the political situation in France and its impact on financial markets.
A sell-off in European stocks and bonds paused on Monday after French far-right leader Marine Le Pen said she would respect political institutions if she wins the upcoming snap parliamentary election.
Le Pen said that if she wins the French parliamentary election, she will not try to overthrow President Macron.
This is clearly an overture to moderates and investors.
Her party, the National Alliance, is expected to become the largest party in the House of Commons.
European Central Bank Vice President Luis de Guindos said he is concerned about the rise of far-right forces across the region.
Guindos said: I am worried about illiberal movements that call the European integration process into question.
He stressed that he was speaking in his personal capacity: In a world that is renationalizing and returning to domestic issues, greater unity is the only way out.
Focus Stocks Nvidia\’s market value once surpassed Apple\’s and became the second largest company in the U.S. stock market.
According to media reports on Monday, Apple is planning to develop thinner models for the upcoming iPhone 17 series.
Well-known Apple analyst Ming-Chi Kuo published an article saying that the Apple Watch Series 10 launched by Apple in the second half of the year will have an appearance upgrade, including a larger screen size (from 45mm/41mm to about 49mm/45mm) and a thinner screen.
In addition, the specifications of the Apple Watch Ultra model have not changed significantly. If the production yield can meet expectations, a new case color option (black/dark) may be added.
Musk, CEO of Tesla and Neuralink, believes that people will no longer need mobile phones in the future because Neuralink’s brain-computer chip technology will help people use their thoughts to do everything that mobile phones can do now.
Wedbush raised Microsoft\’s target price from $500 to $550. It maintained an outperform rating. It said artificial intelligence will change the cloud growth trajectory.
According to reports, the U.S. judiciary rejected Google’s motion to terminate the U.S. antitrust regulator’s case against its digital advertising, ruling that Google must face trial.
Amazon ordered to pay $122 million for infringing targeted advertising patents.
According to reports, Meta CEO Zuckerberg is planning to streamline the company by reducing the number of vice president positions.
A person familiar with the matter revealed that the number of Meta\’s vice presidents reached a peak last year, reaching about 300, an increase from 180 in previous years.
A new round of price increases for TSMC semiconductors may be about to begin.
According to media reports on Monday, TSMC’s 3nm foundry quotation may increase by more than 5%. The annual quotation increase for advanced packaging next year will be 10%-20%.
At the shareholders\’ meeting on June 4, Wei Zhejia, the new chairman who has just taken full control of TSMC, made it clear that he has plans to increase prices.
After Broadcom released its financial report, many major banks raised their target prices.
Citi raised Broadcom\’s target price from US$1,560 to US$1,750 and reiterated a buy rating. It expects that driven by the synergies brought about by AI development and the acquisition of VMware, the market\’s performance expectations for Broadcom will continue to rise.
Jefferies believes that the cyclical adjustment performance of most of Broadcom\’s businesses is improving. It is expected to benefit from the continued development of the AI ​​industry and the cyclical recovery of other industries. It raised the target price from US$1,550 to US$2,050. It rated it a buy.
In other markets, the price of West Texas Intermediate crude oil (WTI) futures for July delivery on the New York Mercantile Exchange rose by $1.88, or 2.4%, to close at $80.33 per barrel.
The price of Brent crude oil futures for August delivery on the European Intercontinental Exchange rose by US$1.63, an increase of 2%, and closed at US$84.25 per barrel.