US-Iran War Fails to Halt Stock Market Rally
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 hours ago
0mins
Should l Buy GS?
Source: CNBC
- Market Resilience: Despite the ongoing US-Iran war, the S&P 500 closed above 7,400 for the first time on Monday, rebounding approximately 17% from its March low, indicating strong market confidence in economic fundamentals.
- Limited Company Impact: Analysis from Trivariate Research reveals that only 10% of the US equity market's total capitalization expects negative impacts from the US-Iran conflict, suggesting that most companies can withstand the pressures of rising oil prices.
- Strong Tech Earnings: The top ten companies in the S&P 500 now account for 34% of total profits, with earnings growth outpacing the other 493 stocks by over 40%, highlighting the robust growth potential driven by artificial intelligence.
- Increased Economic Independence: The US economy's reduced reliance on oil means that current oil price shocks have only a 0.25 percentage point impact on inflation, significantly lower than the 0.90 percentage point effect seen in the 1970s, indicating enhanced economic resilience.
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Analyst Views on GS
Wall Street analysts forecast GS stock price to rise
12 Analyst Rating
5 Buy
7 Hold
0 Sell
Moderate Buy
Current: 944.860
Low
604.00
Averages
951.45
High
1100
Current: 944.860
Low
604.00
Averages
951.45
High
1100
About GS
The Goldman Sachs Group, Inc. is a global financial institution that delivers a range of financial services to a large and diversified client base that includes corporations, financial institutions, governments and individuals. Its segments include Global Banking & Markets, Asset & Wealth Management and Platform Solutions. The Global Banking & Markets segment offers a range of services, including financing, advisory services, risk distribution, and hedging for its institutional and corporate clients. It facilitates client transactions and makes markets in fixed income, equity, currency and commodity products. The Asset & Wealth Management segment manages assets and offers investment products across all asset classes to a diverse set of clients. It also provides investing and wealth advisory solutions. The Platform Solutions segment includes consumer platforms, such as partnerships offering credit cards and point-of-sale financing, and transaction banking and other platform businesses.
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.
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- Limited Company Impact: Analysis from Trivariate Research reveals that only 10% of the US equity market's total capitalization expects negative impacts from the US-Iran conflict, suggesting that most companies can withstand the pressures of rising oil prices.
- Strong Tech Earnings: The top ten companies in the S&P 500 now account for 34% of total profits, with earnings growth outpacing the other 493 stocks by over 40%, highlighting the robust growth potential driven by artificial intelligence.
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- Leadership Change: FGI Co-Founder and President Sami Altaher succeeds David DiPiero as CEO, marking a new chapter for the company, with Altaher focusing on platform investment and product capability expansion to better serve small and medium enterprises.
- Market-Leading Advantage: Goldman Sachs' investment in FGI will leverage its market-leading underwriting expertise and technology-driven operating platform to help FGI capitalize on significant future opportunities, further solidifying its leadership position in the commercial finance industry.
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See More
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- Tech Stocks' Significant Impact: In the S&P 500, all ten largest components fell, with Broadcom and Micron Technology dropping 4.2% and 9.9% respectively, contributing to a roughly 0.1% decline in the index score, highlighting the substantial influence of large tech stocks on market performance.
- Macroeconomic Concerns Intensify: The April inflation report revealed the highest annual inflation rate since spring 2023, coupled with blocked oil shipments through the Strait of Hormuz, exacerbating worries about future economic conditions and market stability.
- Investor Sentiment Cautious: Despite the market volatility, analysts advise investors not to panic, suggesting that this downturn may be a short-term phenomenon, and long-term investment strategies should remain focused on fundamental changes.
See More
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- Limited Company Impact: Analysis from Trivariate Research reveals that only 10% of the US equity market's total capitalization expects negative impacts from the US-Iran conflict, suggesting that most companies can withstand the pressures of rising oil prices.
- Strong Tech Earnings: The top ten companies in the S&P 500 now account for 34% of total profits, with earnings growth outpacing the other 493 stocks by over 40%, highlighting the robust growth potential driven by artificial intelligence.
- Increased Economic Independence: The US economy's reduced reliance on oil means that current oil price shocks have only a 0.25 percentage point impact on inflation, significantly lower than the 0.90 percentage point effect seen in the 1970s, indicating enhanced economic resilience.
See More
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- Pressure for Tech Upgrades: Mythos AI's ability to chain low-risk vulnerabilities into high-risk ones forces banks to fix hundreds to thousands of vulnerabilities at unprecedented speeds, with some patches needing to be completed in days instead of weeks.
- Challenges for Smaller Banks: Smaller banks face dual barriers of technology costs and processing power limitations, and while larger banks share findings, they still struggle to gain direct access to Mythos.
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See More
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- Financing Challenges Emerge: Despite CEO Ryan Cohen's commitment to provide $20 billion in financing, analysts warn that GameStop's $10 billion market cap makes acquiring a $48 billion giant nearly impossible without extreme equity dilution, highlighting the fragility of its financing capabilities.
- Market Reaction Tepid: Following eBay's rejection, GameStop's stock fell 2.37% in pre-market trading, indicating investor concerns about its acquisition ability, which may impact its future stock performance and market positioning.
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See More
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- IPO Performance: Aevex debuted on the New York Stock Exchange last month with an IPO price of $20, and its shares have risen over 22% since then, demonstrating market recognition of its unmanned aircraft systems' demand and future growth potential.
- Market Outlook: According to market intelligence firm IDTechEx, demand for drones in consumer, commercial, and defense applications is projected to exceed $147 billion by 2036, positioning Aevex as a key beneficiary of this market expansion as a leading supplier of unmanned aerial systems.
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