US Stocks Decline Amid Inflation Data Pressure
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4h ago
0mins
Source: NASDAQ.COM
- Inflation Data Impact: The US December Producer Price Index (PPI) rose 0.5% month-over-month and 3.0% year-over-year, exceeding expectations, indicating heightened inflationary pressures that could lead the Fed to maintain high interest rates, negatively impacting the stock market.
- Fed Chair Nomination: President Trump nominated Kevin Warsh as the next Fed Chair, with markets perceiving him as cautious towards rate cuts, which pushed the 10-year Treasury yield to a one-week high of 4.277%, exacerbating downward pressure on stocks.
- Earnings Outlook: With 102 S&P 500 companies set to report earnings this week, 77% of the 143 companies that have reported so far have beaten expectations, demonstrating corporate earnings resilience that may provide support for the market.
- Government Shutdown Risk: Trump reached a tentative deal with Senate Democrats to avert a government shutdown, but the House will take 72 hours to vote, and if unresolved quickly, it could negatively affect market sentiment in the short term.
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Analyst Views on AMAT
Wall Street analysts forecast AMAT stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for AMAT is 288.05 USD with a low forecast of 190.00 USD and a high forecast of 425.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
22 Analyst Rating
18 Buy
4 Hold
0 Sell
Strong Buy
Current: 341.340
Low
190.00
Averages
288.05
High
425.00
Current: 341.340
Low
190.00
Averages
288.05
High
425.00
About AMAT
Applied Materials, Inc. is a materials engineering solution company. The Company provides equipment, services and software to the semiconductor, display, and related industries. It operates in three segments: Semiconductor Systems, Applied Global Services (AGS), and Display. The Semiconductor systems segment designs, develops, manufactures and sells a range of primarily 300 mm equipment used to fabricate semiconductor chips, also referred to as integrated circuits (ICs). The AGS segment provides services, spares and factory automation software to customer fabrication plants globally. The AGS segment also manufactures and sells 200mm and other equipment. The Display segment is comprised primarily of products for manufacturing liquid crystal displays (LCDs), organic light-emitting diodes (OLEDs), and other display technologies for televisions, monitors, laptops, personal computers (PCs), tablets, smartphones, and other consumer-oriented devices.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
US Stocks Decline Amid Inflation Data Pressure
- Inflation Data Impact: The US December Producer Price Index (PPI) rose 0.5% month-over-month and 3.0% year-over-year, exceeding expectations, indicating heightened inflationary pressures that could lead the Fed to maintain high interest rates, negatively impacting the stock market.
- Fed Chair Nomination: President Trump nominated Kevin Warsh as the next Fed Chair, with markets perceiving him as cautious towards rate cuts, which pushed the 10-year Treasury yield to a one-week high of 4.277%, exacerbating downward pressure on stocks.
- Earnings Outlook: With 102 S&P 500 companies set to report earnings this week, 77% of the 143 companies that have reported so far have beaten expectations, demonstrating corporate earnings resilience that may provide support for the market.
- Government Shutdown Risk: Trump reached a tentative deal with Senate Democrats to avert a government shutdown, but the House will take 72 hours to vote, and if unresolved quickly, it could negatively affect market sentiment in the short term.
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US Stocks Decline Amid Inflation Data Pressure
- Inflation Data Surprises: The US December Producer Price Index (PPI) rose 0.5% month-over-month and 3.0% year-over-year, exceeding expectations of 0.2% and 2.8%, indicating heightened inflationary pressures that could influence Fed policy decisions.
- Fed Chair Nomination Impact: President Trump nominated Kevin Warsh as the next Fed Chair, with markets perceiving him as more hawkish, leading to a rise in the 10-year T-note yield to a one-week high of 4.277%, further exacerbating downward pressure on stocks.
- Strong Earnings Reports: With 102 S&P 500 companies set to report earnings this week, 77% of the 143 companies that have reported so far have beaten expectations, and S&P earnings growth is projected to reach 8.4% in Q4, showcasing corporate resilience amid market volatility.
- Government Shutdown Risk Eases: Trump reached a tentative deal with Senate Democrats to avert a government shutdown, which, while requiring a 72-hour House vote, is expected to have minimal impact on federal operations if resolved quickly.
Continue Reading