2025-05-28 12:11
NEW YORK, May 28 (Reuters) - The S&P 500 will finish the year near current levels, according to a Reuters poll, after many strategists in recent months cut their 2025 forecast for the index over uncertainty surrounding U.S. President Donald Trump's tariffs. Based on the median forecast of 51 equity strategists, analysts, brokers and portfolio managers collected May 15-28, the year-end target for the benchmark S&P 500 (.SPX) , opens new tab is 5,900, down from 6,500 in a February poll by Reuters. The S&P 500 ended Tuesday at 5,921.54. Sign up here. The market will remain choppy, strategists said, while seven out of 14 respondents who answered a question on profit growth said S&P 500 earnings will be marginally higher in 2025 than in 2024 and two said significantly higher. Five said they would be marginally lower. Sameer Samana, head of global equities and real assets at Wells Fargo Investment Institute, said the firm lowered its year-end target to 6,000 recently from 6,500 set at the start of the year. "Clearly earnings will be impacted by what's going on with tariffs," he said. "Our belief is tariffs are a tax and some combination of U.S. consumers, U.S. companies along with international producers and companies will pay the taxes. In essence, that kind of wealth transfer comes out of earnings to a certain extent," he added. According to LSEG, S&P 500 earnings are expected to increase 8.4% in 2025 compared with 12.1% in 2024. But the 2025 estimate is down sharply from 14% growth estimated on January 1. Trade developments have whipsawed the stock market this year, especially after Trump's April 2 announcement of sweeping tariffs on imports globally. In his latest move, Trump on Sunday backed down from his threat of a 50% tariff against the European Union, delaying its implementation until July 9 to allow for negotiations between the White House and the 27-nation bloc. The move prompted Brussels to fast track preparations for trade talks. Following a Tuesday rally, the S&P 500 is up just 0.7% for the year. But strategists say the back-and-forth nature of tariff negotiations has made predicting what the index will do tough. "It's very difficult to forecast given the tariff uncertainty and the changing dynamics that seem to happen daily," said Anthony Saglimbene, chief market strategist at Ameriprise Financial in Troy, Michigan. "There's just a higher risk premium that has to be put on stocks, and that's going to be with us through the rest of this year." He said his firm's "base" target is 5,600 for the S&P 500 for this year, but a "6,000 to 5,600 range seems very reasonable based on the tariff environment not really causing a recession or deteriorating corporate profits too much." Some strategists have raised their S&P 500 forecasts recently. Last week, David Lefkowitz, head of U.S. equities at UBS Global Wealth Management, wrote that the firm was increasing its year-end target to 6,000 from 5,800 partly because of a "solid first-quarter earnings season". Concerns over the U.S. debt load have added to recent jitters and a "sell America" view by some investors. Moody's downgraded its U.S. credit rating on May 16, and the Republican-controlled U.S. House of Representatives passed Trump's sweeping tax-cut bill last week. The bill goes to the U.S. Senate next for review where investors worry spending cuts could be whittled down, growing the deficit. The S&P 500 posted gains exceeding 20% in both 2024 and 2023, helped by megacap technology stocks and optimism over the business potential of artificial intelligence. While the S&P 500 technology sector (.SPLRCT) , opens new tab remains down 1.7% so far for 2025, it has been bouncing back, and some investors still see it as a good bet going forward. "Technology will likely remain volatile, but any downturns we get in tech, investors should use that as a long-term buying opportunity," Saglimbene said, noting tech profit growth should hold up. Samana said Wells Fargo Investment Institute likes energy (.SPNY) , opens new tab, financials (.SPSY) , opens new tab and communication services (.SPLRCL) , opens new tab and noted the firm "took the opportunity in the middle of the pullback to upgrade tech." He is cautioning investors against consumer staples (.SPLRCS) , opens new tab and utilities (.SPLRCU) , opens new tab. At the same time, Eric Teal, chief investment officer for Comerica Wealth Management, expects the Dow to end the year at 48,000 and to outperform the S&P 500 this year "due to more industrial and attractively valued companies and less-concentrated technology exposure." The poll has the Dow Jones Industrial Average (.DJI) , opens new tab finishing this year at 43,708, down from 47,024 in the Reuters February poll. The index closed at 42,343.65 on Tuesday. (Other stories from the Reuters Q2 global stock markets poll package) https://www.reuters.com/world/us/with-trump-tariff-jitters-sp-500-finish-year-nearly-even-with-2024-2025-05-28/
2025-05-28 12:05
May 28 (Reuters) - GameStop (GME.N) , opens new tab has purchased bitcoin worth about $513 million, the company said on Wednesday as the ailing video game retailer looks to capitalize on the growing adoption of cryptocurrencies globally. GameStop said in a filing it acquired 4,710 bitcoins, although it did not disclose the period for the purchases. The world's largest cryptocurrency was trading down 0.7% at $108,903 by 7 a.m. ET. Sign up here. The purchases are GameStop's first bitcoin purchase since unveiling its plans in March to invest in the digital asset, adopting a strategy pioneered by Michael Saylor's Strategy (MSTR.O) , opens new tab, an enterprise software company and the largest corporate holder of bitcoin. Strategy's stock has seen significant gains alongside the rising price of bitcoin, attracting investors seeking exposure to the digital asset without directly investing in it. For GameStop, which was at the center of 2021's meme-stock frenzy, the move could boost investor interest at a time it is struggling to turn around its mainstay business of selling video games through brick-and-mortar stores in the digital age. Shares of the Dallas, Texas-based company were 4.4% higher in pre-market trading. The company had cash, cash equivalents and marketable securities of $4.78 billion as of Feb. 1. The announcement comes a day after Trump Media and Technology Group (DJT.O) , opens new tab, U.S. President Donald Trump's social media firm, said it would raise $2.5 billion to buy bitcoin. https://www.reuters.com/business/gamestop-buys-bitcoin-worth-513-million-crypto-push-2025-05-28/
2025-05-28 12:04
MOSCOW, May 28 (Reuters) - Russia's central bank defended its tight monetary policy in a report on Wednesday, saying high rates had contributed to a slowdown in lending and fostered signs of disinflation, but pointed to low oil prices as a key risk for the Russian economy. The central bank, battling stubbornly high inflation, has stood firm for months against growing pressure to ease borrowing costs, with critical companies cutting investment plans and the government bemoaning slowing economic growth. Sign up here. Economy Minister Maxim Reshetnikov on Monday said the cooling economy was facing "hypothermia" risks as he urged the central bank to take slowing inflation into account when it next meets to set interest rates on June 6. "Tight monetary policy is a temporary factor, necessary for a sustainable reduction in inflation," the bank, which has held its key interest rate at 21% since October, said in a financial stability review. Soaring military spending in the last two years has generated economic growth but fuelled inflation, causing overheating that the central bank has sought to cool with high rates. Russia's growth domestic product growth slowed to 1.4% in the first quarter, from 4.5% a quarter earlier. External conditions remain difficult, the bank said, pointing to risks from global market volatility, trade wars and the prospect of increased sanctions against Moscow. Further drops in prices for Russia's export goods, particularly oil, could become a "key risk" for Russia, the bank said. Price drops can reduce revenue for exporting companies and, in turn, the budget. However, financial stability risks overall are limited due to Russia's low debt and reserves accumulated during years of high oil prices, the bank said. The bank said increased credit restructuring by large and medium-sized Russian companies at the end of March was a temporary trend, expressing confidence that a majority of firms was resilient to interest rate risk. Nevertheless, banks must conduct regular stress tests of the stability of their corporate loan portfolios, the bank said. https://www.reuters.com/business/finance/russian-central-bank-warns-oil-price-risks-it-defends-high-rates-2025-05-28/
2025-05-28 12:00
KYIV, May 28 (Reuters) - Ukraine has protested to the international atomic energy watchdog about reports that Russia is building power lines to connect the Zaporizhzhia nuclear plant to its own grid, a Ukrainian official said on Wednesday. Yuriy Vitrenko, Ukraine's representative to international bodies in Vienna, told Ukrainian news agency Ukrinform that Kyiv sees any attempt by Russia to connect the occupied plant to its grid as a gross violation of international law and Ukrainian sovereignty. Sign up here. On Tuesday, The New York times cited a new Greenpeace report which found that Russia had been building more than 50 miles (80 km) of power lines between the occupied Ukrainian cities of Mariupol and Berdyansk. Ukrainian officials have repeatedly stated that attempts to restart the plant could lead to a nuclear disaster, as Russian personnel are unfamiliar with the significantly upgraded equipment, are not trained to use it, and the condition of the plant itself is unknown. The lack of sufficient water volumes to cool the reactors after the Russian-held Kakhovka dam was blown up , opens new tab in June 2023, unleashing flooding, was an additional source of danger, they say. IAEA chief Rafael Grossi said the issue of restarting the plant would be discussed at meetings during his visits to Ukraine and possibly to Russia in the coming days. https://www.reuters.com/business/energy/ukraine-protests-iaea-over-russia-building-power-lines-zaporizhzhia-nuclear-2025-05-28/
2025-05-28 11:51
NEW DELHI, May 28 (Reuters) - India has raised the price at which it will buy the new-season common rice paddy variety from local farmers by 3%, the lowest increase in five years, as New Delhi struggles to manage overflowing granaries after last year's record harvest. India is the world's second-largest producer of rice and the biggest exporter in the world with a market share of more than 40%. Sign up here. For the common grade of rice paddy, the government has fixed the support, or guaranteed price at 2,369 rupees ($27.76) per 100 kg (220.46 lb), up from 2,300 rupees last year, Information and Broadcasting Minister Ashwini Vaishnaw said on Wednesday. Last year, India raised the rice paddy purchase price by 5.4%. The small rise in the support price will help exporters remain competitive in the world market against rivals such as Thailand and Vietnam, B.V. Krishna Rao, president of the Rice Exporters Association told Reuters. Every year authorities raise the support price of staples such as rice and wheat to build stockpiles to run the largest food welfare programme in the world, providing access to free grains for those most in need. But rice stocks, including unmilled rice paddy, in government warehouses totalled 59.5 million tons on May 1, more than four times a government target. The government is sitting on excess rice stocks and struggling to sell them, said a Mumbai-based dealer with a global trade house. "It doesn't want a big spike in production since that would mess things up. It's hoping farmers switch to other crops instead," the dealer said. Rice yields are affected by seasonal monsoon rainfall as rice is a water intensive crop. India's weather department has forecast above-average monsoon rainfall for the second straight year in 2025. India also raised the cotton purchase price by 8.3% to 7,710 rupees per 100 kg and the soybean price by 8.9% to 5,328 rupees per 100 kg. https://www.reuters.com/world/china/india-raises-purchase-price-rice-by-3-lowest-increase-five-years-2025-05-28/
2025-05-28 11:46
DOHA, May 28 (Reuters) - The Syrian government is to sign a deal with four companies on Thursday to expand its electrical grid by 5,000 megawatts, potentially doubling supply in a country that has suffered severe power shortages after more than a decade of conflict. State-supplied electricity is available in Syria for only two or three hours a day in most areas, and the government of President Ahmed al-Sharaa has pledged to quickly ramp up power supply in the country. Sign up here. The deal launching the Syria Power Revival Initiative will be signed at the Syrian presidential palace on Thursday, according to a media invitation from Qatar's UCC Holding, whose unit UCC Concession Investments will be lead developer on the project. The deal will also involve Kalyon GES Enerji Yatirimlari, Cengiz Enerji and Power International USA, according to the invitation. Energy and construction company UCC Holding - whose chairman is Syrian-Qatari entrepreneur Moutaz Al-Khayyat and whose president and CEO is his brother, Ramez Al-Khayyat - did not immediately respond to a Reuters request for further comment. The project will expand the grid through the development of gas turbines and solar plants. Fourteen years of war have destroyed much of Syria’s electricity infrastructure, which UN estimates say will require billions of dollars to repair. Damascus used to receive the bulk of its oil for power generation from Iran, but supplies have been cut off since Islamist Hayat Tahrir al-Sham led the ouster of Tehran-allied former president Bashar al-Assad in December. Qatar, a major producer of liquefied natural gas, has been providing Damascus's main power generation plant with gas since March as a stop-gap measure. https://www.reuters.com/world/middle-east/four-firms-including-qatars-ucc-expand-syrian-power-grid-2025-05-28/
