S&P likely to keep rising despite pause | Real Time Headlines

This report comes from today’s CNBC Daily Open, our international markets newsletter. CNBC Daily Open keeps investors updated on everything they need to know, no matter where they are. Like what you see? You can subscribe here.

Most markets fell except Nasdaq
The US market is tuesday mix. this S&P 500 Index and Dow Jones Industrial Average Down slightly, but close to flatline. However, Nasdaq Index Add 0.18%. Asia Pacific stocks Most trading higher on Wednesdayboosted by investor sentiment toward blockbuster listings Tokyo Metro and China Resources Beverage.

Tokyo Metro debuts
Tokyo Metro shares Soared nearly 45% after going public on Wednesday. The Japanese subway operator’s initial public offering attracted 348.6 billion yen ($2.3 billion), making it Japan’s largest IPO Within six years. Jesper Koll, expert director at financial services company Monex Group, said the Tokyo subway is a “cash cow”.

IMF downgrades China’s economic growth
International Monetary Fund Reduce China’s economic growth forecast Growth this year rose to 4.8% from 5% in July, according to its data world economic outlook report Published Tuesday. The International Monetary Fund predicts that China’s gross domestic product (GDP) growth rate will slow to 4.5% in 2025 as China’s real estate industry may continue to drag down the economy.

TSMC denies supplying chips to Huawei
The Information is a technology-focused publication that last week reportk The Ministry of Commerce is investigating whether British Semiconductor It has been producing artificial intelligence or smartphone chips for Huawei, violating U.S. export regulations. company dispute “TSMC is a law-abiding company and we are committed to complying with all applicable rules and regulations,” the report told CNBC on Wednesday.

(PRO) Growth Stock or Value Stock?
Growth-focused companies reinvest much of their revenue and loans back into the business to expand. Therefore, when the economy is expanding and interest rates are low (the current environment in the United States), growth stocks tend to perform better. Value stocks may be a better choice now.

this Standard & Poor’s The company’s shares are up more than 22% so far this year and have broken multiple closing records on the way to their peak.

Still, the composite index’s gains have slowed in recent days. On Tuesday, the S&P fell 0.05%, its first consecutive decline since early September.

When the meeting is suspended, barclays bank “We recommend staying on the sidelines for now. We think investors are likely to do the same; the risk rally should stall in the coming weeks,” they wrote.

However, it can still come back to life when a fast-moving vehicle stalls. Notably, all major U.S. stock indexes are trading above their 50- and 200-day moving averages, indicating they have forward momentum.

indeed, UBS Wealth Management this month upgraded U.S. stocks to attractive from neutral. “We believe a ‘no landing’ scenario would be positive for U.S. and global equities,” said Mark Haefele, chief investment officer at UBS Great Wall.

“There are signs that the long-term trend growth rate may be higher than previously estimated,” Heifler added.

The International Monetary Fund also believes that U.S. economic growth will remain strong. in its latest world economic outlookThe IMF raised its 2024 GDP forecast for the United States to 2.8% from 2.6% in July, and also raised its growth forecast for the country in 2025. It is the only developed economy to have its economic trajectory upgraded by the International Monetary Fund for two consecutive years.

We have American consumers to thank for that. “The elasticity of consumption is largely the result of strong real wage growth,” the IMF wrote in its report.

With the presidential election approaching and stock valuations elevated, the outlook for the market could be tough right now. But S&P may stick to climbing the rocky ridges of the rising mountains.

—CNBC’s Brian Evans, Hakyung Kim, Pia Singh and Samantha Subin contributed to this report.