US Stocks Surge as Goldman and UBS Lift S&P 500 Targets

2024-10-17 | Daily Analysis , Daily Insight , FTSE China A50 Index , HK Stocks , Securities , US Stocks

US Stocks Surge as Goldman and UBS Lift S&P 500 Targets

On Wednesday, US stocks closed higher, with the Dow hitting a record closing high. Goldman Sachs significantly raised its year-end target for the S&P 500 in 2024, following a similar move by UBS, which also increased its target for the S&P 500 earlier this week.

Scott Rubner, Managing Director and Tactical Expert at Goldman Sachs Global Markets, stated on Wednesday that the S&P 500 could “easily exceed 6,000 points” this year. Based on data dating back to 1928, he predicts the index could reach as high as 6,270 by year-end.

Earlier this week, UBS analysts raised their year-end target for the S&P 500 from 5,600 to 5,850 points, marking the fourth time UBS has increased its target since its annual outlook was first published at the end of last year.

However, Bryn Talkington, Managing Partner at Requisite Capital Management, cautioned that with earnings season and the upcoming presidential election, stock markets could experience volatility in the coming weeks.

Meanwhile, the Q3 earnings season is in full swing. On Tuesday, Morgan Stanley reported impressive Q3 results. The firm posted revenue of $15.383 billion, up nearly 16% year-over-year, exceeding market expectations of $14.41 billion. Its Q3 profit reached $3.188 billion, a 32% year-over-year increase, with earnings per share of $1.88, beating the market forecast of $1.58. Following the report, Morgan Stanley’s stock surged more than 6%.

Additionally, AI nuclear power stocks continued to soar after Amazon announced an investment in small nuclear reactors. Oklo, a company backed by OpenAI CEO Sam Altman, rose nearly 42% on Wednesday.

US Stocks

Fundamental Analysis: 

Most large-cap tech stocks declined, with Intel and Meta falling more than 1%, while Amazon, Google, Microsoft, Netflix, and Apple saw minor losses. Nvidia bucked the trend, rising over 3%, and Tesla posted a slight gain.

Precious metals, banking, and airline stocks mostly gained, with United Airlines up over 12%, American Airlines rising over 7%, Delta Air Lines and Morgan Stanley both gaining over 6% (with Morgan Stanley hitting a record high), Harmony Gold up more than 5%, and Kinross Gold up over 4%.

Trump-related stocks surged, with Trump Media & Technology Group up more than 15%, bringing its monthly gains to nearly 95%, and Phunware gaining over 17%, with a monthly rise of over 85%. RNA-testing company Wave Life Sciences jumped over 74%, marking its biggest single-day gain since its US IPO.

Top Chinese ADRs had mixed results, with the Nasdaq Golden Dragon China Index rising 0.93%. iQiyi rose more than 2%, while Baidu, Bilibili, and JD.com all gained over 1%, and Alibaba and Full Truck Alliance saw modest gains.

Meanwhile, NIO and Futu Holdings fell over 1%, and Tencent Music, Vipshop, XPeng, Weibo, Pinduoduo, and Li Auto all posted small losses.

Technical Analysis: 

US Stocks Surge as Goldman and UBS Lift S&P 500 Targets
(S&P 500 Index, 1-day chart) 

Market Trends: 

  • Dow Jones rose 337.28 points, up 0.79%, to close at 43,077.70.
  • Nasdaq increased by 51.49 points, up 0.28%, to close at 18,367.08.
  • S&P 500 gained 27.21 points, up 0.47%, to close at 5,842.47.

Hong Kong Stock Market

Fundamental Analysis: 

Hong Kong’s three major indices closed higher, with tech stocks rallying. Xiaomi rose nearly 4%, JD.com gained over 2%, and Meituan, Alibaba, and Tencent each climbed over 1%. Meanwhile, real estate stocks fell, with Sunac China down over 21%, and semiconductor leader SMIC up more than 3%.

Chinese brokerage stocks were active, with China Merchants Securities rising over 4%. The market was abuzz with discussions on mergers and acquisitions (M&A) among brokerages.

Since September 24, several firms, including Great Wall Securities, Caitong Securities, China Merchants Securities, and Cinda Securities, have either participated in institutional research or addressed investor queries regarding M&A strategies.

US Stocks Surge as Goldman and UBS Lift S&P 500 Targets
(Hang Seng Index, 1-day chart) 

Technical Analysis: 

  • Hang Seng Index rose 0.81%, closing at 20,452.17.
  • Hang Seng Tech Index gained 1.34%, closing at 4,461.34.
  • China Enterprises Index climbed 0.91%, closing at 7,334.32.

FTSE China A50 Index

Fundamental Analysis: 

China’s A-shares rose across the board during morning trading. As of midday, total market turnover reached 917.9 billion yuan, an increase of 5.5 billion yuan compared to the previous day. Over 3,100 stocks saw gains.

In terms of sectors, data security, high-speed copper cable connections, and Huawei-concept stocks led the gains, while real estate and liquor stocks lagged.

On the market, the autonomous control theme saw renewed interest, with data security stocks surging. Multiple stocks, including Guangdao Digital, Hanxin Technology, Ren Zixing, Zheda Innovation, Guohua Network Security, and China Greatwall, hit limit-up.

Copper cable stocks also saw strong gains, with Kaiwang Technology hitting its 20% limit-up, and Wohua Nuclear Materials and Yihua Electronics following suit. Nuclear power stocks were active, with Rongfa Nuclear, Chuanrun Shares, and Nanfeng Shares hitting limit-up.

In response to growing AI and cloud computing demand, US tech giants have turned to clean nuclear energy, pushing US nuclear power stocks higher in recent weeks.

Meanwhile, real estate stocks fell sharply in early trading, with Wanye Enterprises hitting limit-down, and several others, such as Jintou City, Gemdale Group, and Poly Developments, falling more than 6%.

Technical Analysis: 

US Stocks Surge as Goldman and UBS Lift S&P 500 Targets
(SSE Composite Index, 1-day chart) 

Market Trends: 

  • Shanghai Composite Index rose 0.09%, closing at 3,205.95.
  • Shenzhen Component Index gained 0.50%, closing at 10,014.81.
  • ChiNext Index increased 0.91%, closing at 2,058.52.

Risk Disclosure
Securities, Futures, CFDs and other financial products involve high risks due to the fluctuation in the value and prices of the underlying financial instruments. Due to the adverse and unpredictable market movements, large losses exceeding your initial investment could incur within a short period of time.  
Please make sure you fully understand the risks of trading with the respective financial instrument before engaging in any transactions with us. You should seek independent professional advice if you do not understand the risks explained herein. 

Disclaimer
This information contained in this blog is for general reference only and is not intended as investment advice, a recommendation, an offer, or an invitation to buy or sell any financial instruments. It does not consider any specific recipient’s investment objectives or financial situation. Past performance references are not reliable indicators of future performance. Doo Prime and its affiliates make no representations or warranties about the accuracy or completeness of this information and accept no liability for any losses or damages resulting from its use or from any investments made based on it. 
The above strategies reflect only the analysts’ opinions and are for reference only. They should not be used or considered as the basis for any trading decisions or as an invitation to engage in any transaction. Doo Prime does not guarantee the accuracy or completeness of this report and assumes no responsibility for any losses resulting from the use of this report. Do not rely on this report to replace your independent judgment. The market is risky, and investments should be made with caution. 

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