US Stocks Brace for Calm Open Following Record Highs, Tariffs Loom
Wall Street is expected to open with caution on Monday, taking a breather after last week’s record-breaking rallies for both the Dow Jones Industrial Average and the S&P 500.
The calmer mood comes in the wake of President Donald Trump’s latest pronouncements regarding potential tariffs against several emerging economies, a move that has rattled investor confidence. The president, known for his protectionist trade policies, threatened "100 percent tariffs" on goods from BRICS countries should they choose to abandon the US dollar as their primary currency for international transactions.
"We are asking for a commitment from these countries that they will not create a new BRICS currency or support another currency to replace the mighty US dollar," Trump stated on his social media platform, Truth Social.
Trump has previously threatened similar tariffs on neighboring countries such as Mexico and Canada.
The BRICS bloc, comprising Brazil, Russia, India, China, and South Africa, has been discussing alternatives to the US dollar in international trade. Earlier this year, the group expanded to include Iran, Egypt, Ethiopia, and the United Arab Emirates.
Adding to the uncertainty is the release of recent economic data providing a mixed picture of the US economy’s health.
Individual Movers:
Despite the broader market uncertainty, some companies are garnering attention in pre-market trading.
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Intel (INTC) saw its shares surge by 6% following the announcement of CEO Pat Gelsinger’s resignation.
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First Solar (FSLR) is poised for further gains, climbing 2.4% in pre-market trading to $204.12. The photovoltaic company is expected to benefit from new US tariffs on imported solar panels from Southeast Asia granted last Friday. Investment bank Piper Sandler raised its price target for First Solar from $210 to $250 in response.
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Gap (GPS) investors are also optimistic, with shares up 4.5% to $25.33 in pre-market trading. US bank JPMorgan upgraded its rating on the clothing retailer to "Overweight" and increased its target price to $30.
- However, news of a potential acquisition left BlackRock (BLK) shares relatively unchanged. Sources suggest that the asset management giant’s purchase of HPS Investment Partners, initially reported in October, could be finalized this week for a minimum of $12 billion. There are, however, possibilities of delays or even the deal collapsing altogether.
This potential deal follows BlackRock’s acquisition of Global Infrastructure Partners in October for $12.5 billion.
Investors will be closely watching for further developments on these fronts as they navigate the market’s outlook for the week ahead.
2024-12-02 14:09:00
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