Stocks Fall for Fifth Straight Day: S&P 500 Down 0.4%
ByAinvest
Friday, Aug 22, 2025 10:27 pm ET1min read
UBS--
UBS recently raised its annual target for the S&P 500 to 6,600, signaling a bullish outlook despite the recent market turbulence [1]. However, the current S&P 500 price stands at $6,370.17, and the index has been declining due to a selloff in Walmart and waning expectations of a Federal Reserve (Fed) rate cut ahead of Chair Jerome Powell's Jackson Hole speech. The TSX, on the other hand, has closed above 28,000 for the first time, buoyed by gains in resource shares.
The TSX's performance highlights the resilience of the Canadian economy, particularly in the resource sector. A Morgan Stanley study revealed that AI adoption could lead to annual savings of nearly $920 billion for S&P 500 companies, primarily through wage reductions and increased productivity [2]. This significant cost saving is expected to have far-reaching implications across various industries, potentially translating into a $13-$16 trillion boost in market value for the S&P 500.
Investors should remain cautious about the short-term volatility but keep an eye on the long-term trends and potential benefits of AI adoption. The market is expected to continue to be influenced by geopolitical events and central bank policies, which may cause fluctuations in the near term.
References:
[1] https://www.ainvest.com/news/ubs-boosts-500-annual-forecast-6-600-2508/
[2] https://finance.yahoo.com/news/stocks-mostly-lower-chip-makers-203513647.html
The S&P 500 fell 0.4% on Thursday, marking its fifth consecutive decline, with the Dow and Nasdaq also slipping 0.3%. Most megacap tech stocks closed in the red, averaging a 3% loss for the week.
The S&P 500 experienced its fifth consecutive day of decline on Thursday, falling by 0.4%, with the Dow and Nasdaq also slipping by 0.3% [2]. The broader market was weighed down by a significant selloff in megacap tech stocks, which averaged a 3% loss for the week. This downturn comes amid ongoing market volatility and uncertainty surrounding geopolitical events and central bank policies.UBS recently raised its annual target for the S&P 500 to 6,600, signaling a bullish outlook despite the recent market turbulence [1]. However, the current S&P 500 price stands at $6,370.17, and the index has been declining due to a selloff in Walmart and waning expectations of a Federal Reserve (Fed) rate cut ahead of Chair Jerome Powell's Jackson Hole speech. The TSX, on the other hand, has closed above 28,000 for the first time, buoyed by gains in resource shares.
The TSX's performance highlights the resilience of the Canadian economy, particularly in the resource sector. A Morgan Stanley study revealed that AI adoption could lead to annual savings of nearly $920 billion for S&P 500 companies, primarily through wage reductions and increased productivity [2]. This significant cost saving is expected to have far-reaching implications across various industries, potentially translating into a $13-$16 trillion boost in market value for the S&P 500.
Investors should remain cautious about the short-term volatility but keep an eye on the long-term trends and potential benefits of AI adoption. The market is expected to continue to be influenced by geopolitical events and central bank policies, which may cause fluctuations in the near term.
References:
[1] https://www.ainvest.com/news/ubs-boosts-500-annual-forecast-6-600-2508/
[2] https://finance.yahoo.com/news/stocks-mostly-lower-chip-makers-203513647.html
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