The CNN Money Fear and Greed index showed an increase in the overall market sentiment, while the index remained in the “Fear” zone on Friday.U.S. stocks settled higher on Friday, with the Dow Jones index jumping more than 1,200 points during the session. The index notched fresh record highs Friday, topping the 50,000-point milestone.On the economic data front, the University of Michigan’s consumer sentiment index increased by 0.9 points to a reading of 57.3 in February, topping market estimates of 55.Most s ...

Market Sentiment - The CNN Money Fear and Greed index showed a decline in overall market sentiment, remaining in the "Fear" zone with a current reading of 40.7, down from 44.5 [1][4] - U.S. stocks exhibited mixed performance, with the Nasdaq Composite falling approximately 350 points as investors shifted from long-duration growth stocks to energy and materials sectors [1] Economic Data - The ISM Services PMI remained unchanged at 53.8 in January, matching the revised December figure and exceeding market estimates of 53.5 [2] - The S&P Global composite PMI increased to 53.0 in January from a preliminary level of 52.8 and up from December's reading of 52.7 [2] Sector Performance - Most sectors on the S&P 500 closed positively, with energy, materials, and real estate stocks showing the largest gains, while information technology and communication services sectors declined [3] - The Dow Jones increased by around 260 points to 49,501.30, while the S&P 500 fell by 0.51% to 6,882.72, and the Nasdaq Composite decreased by 1.51% to 22,904.58 during the session [3]

January 26, 2026 05:35 PM GMT Cross-Asset Spotlight | Global Rates Whiplash Signals, Flows, & Key Data: A weekly summary of key cross-asset monitors, data, moves, and models tracking sentiment, fund flows, and positioning. Last week, 40-year JGB yields surpassed 4% for the first time amid fiscal concerns and MSCI Europe retreated on possible Greenland-related tariffs. Key highlights from last week: Exhibit 1: Morgan Stanley forecasts | Soham Sen | | | --- | --- | | Strategist | | | Soham.Sen1@morganstanley. ...

Group 1: Strong Buy Ratings - Technology sector shows strong momentum with five stocks rated as "Strong Buy": Meta Platforms Inc. (META), Cisco Systems Inc. (CSCO), Fortinet Inc. (FTNT), Microchip Technology Incorporated (MCHP), and Micron Technology Inc. (MU) [1][2][3][4] - Meta Platforms Inc. has a market capitalization of approximately $1.69 trillion, while Cisco Systems Inc. is valued around $304.27 billion [2] - Fortinet Inc. has a market cap of roughly $61.77 billion, and Microchip Technology Incorporated is valued at approximately $40.42 billion [3][4] - In the industrials sector, SLB Limited (market cap about $74.19 billion) and Quanta Services Inc. (market cap around $70.2 billion) also received "Strong Buy" ratings [2][3] Group 2: Downgrades to Hold - Some large-cap companies faced downgrades to "Hold," indicating a selective market sentiment. Cummins Inc. was downgraded by Wolfe Research, and Public Storage also moved to "Hold" from "Strong Buy" [5] - These downgrades suggest that while certain sectors are favored, investors are cautious about the broader market [5]

Market Sentiment - The CNN Money Fear and Greed index showed a slight decline in overall market sentiment, remaining in the "Neutral" zone with a reading of 52.4, down from 52.8 [6] - U.S. stocks settled mixed, with the Dow Jones index falling more than 250 points during the session, closing lower by around 285 points to 49,098.71 [4] Stock Performance - Goldman Sachs shares fell around 4% on Friday, while Nvidia Corp. and Advanced Micro Devices Inc. saw gains of 1.5% and 2.4%, respectively [2] - Intel Corp. shares dipped around 17% after issuing a weak first-quarter outlook [2] - The S&P 500 rose 0.03% to 6,915.61, and the Nasdaq Composite gained 0.28% at 23,501.24 during Friday's session [4] Economic Data - The University of Michigan's consumer sentiment index rose to 56.4 in January from a preliminary reading of 54.0 and December's reading of 52.9 [3] - The S&P Global composite PMI rose to 52.8 in January from 52.7 in the previous month [3] Sector Performance - Most sectors on the S&P 500 closed positively, with materials, consumer discretionary, and consumer staples stocks recording the biggest gains [4] - Financial and industrials stocks bucked the overall market trend, closing lower [4] Upcoming Earnings - Investors are awaiting earnings results from Steel Dynamics Inc., Nucor Corp., and Sanmina Corp. [5]

Summary of Key Points from the Conference Call Industry Overview - The report focuses on the global financial markets, particularly the performance of various asset classes including equities, fixed income, currencies, and commodities. Core Insights and Arguments - **Oil Market Dynamics**: Oil prices increased due to supply disruption concerns from Venezuela and Iran, with expectations that near-term risks may be offset by potential higher output if political conditions stabilize [7][8]. - **DXY Index Movement**: The DXY index rose by 0.7% amid geopolitical uncertainties and a weaker unemployment report, indicating a test of the USD's safe-haven status [7][10]. - **Federal Reserve Rate Cuts**: The market-implied probability of Fed rate cuts decreased following a decline in the unemployment rate, suggesting less immediate need for rate cuts to stabilize the labor market [7][11]. - **Equity Market Forecasts**: Morgan Stanley provided forecasts for various equity indices for Q4 2026, with the S&P 500 expected to return between -18.5% (bear case) and 30.3% (bull case) [3]. - **Global Economic Indicators**: UK construction PMI showed a downside surprise, leading to a bull-flattening of UK gilts, indicating that growth is crucial for near-term Bank of England actions [7][16]. Additional Important Insights - **ETF Fund Flows**: The report tracks daily fund flows across approximately 5,000 ETFs globally, covering around $7 trillion in assets, providing insights into cross-asset sentiment and positioning [19]. - **Market Sentiment Indicator (MSI)**: The MSI aggregates survey positioning, volatility, and momentum data to quantify market stress and sentiment, indicating a mixed sentiment environment [57]. - **COVA Framework**: The correlation-valuation (COVA) scorecard identifies good portfolio diversifiers at reasonable prices, rewarding assets with negative correlation to equities and stable correlations [62][64]. Performance Metrics - **Equity Returns**: The report outlines expected returns for various global equity indices, with the S&P 500 forecasted to have a base case return of 13.1% [3]. - **Commodity Performance**: Silver outperformed the Bloomberg Commodity Spot Index (BCOMSP) with an increase of 11.7% [68]. - **Bond Market Trends**: US High Yield (HY) and EUR HY tightened by 11 basis points and 13 basis points, respectively, indicating a positive trend in the bond market [68]. This summary encapsulates the key points from the conference call, highlighting the current state of the financial markets, forecasts, and significant trends that could impact investment decisions.

Summary of Key Points from the Conference Call Industry Overview - The report focuses on the **cross-asset market**, highlighting trends in commodities, equities, and fixed income, with particular attention to geopolitical risks affecting oil prices and currency fluctuations. Core Insights and Arguments - **Oil Prices**: Oil prices ended the week higher due to supply disruption concerns from Venezuela and Iran. However, there are expectations that near-term production disruptions may be offset by potential increases in output if political conditions stabilize [7][8] - **DXY Index**: The DXY index increased by 0.7% amid geopolitical uncertainty and a soft unemployment report, indicating a test of the USD's status as a safe haven [7][10] - **UK Gilts**: UK gilts experienced a bull-flattening trend following a downside surprise in the UK construction PMI, suggesting that growth will be crucial for the Bank of England's near-term actions [7][16] - **Federal Reserve Rate Cuts**: The market-implied probability of Fed rate cuts decreased after a decline in the unemployment rate, with US economists suggesting less need for immediate cuts due to improved economic momentum [7][11] Financial Forecasts - **Morgan Stanley Forecasts for Q4 2026**: - **Gold**: Expected total return of 23.6% with a volatility of -12.5% [3] - **Copper**: Expected total return of 6.9% with a volatility of -27.2% [3] - **Brent Crude**: Expected total return of 94.3% with a volatility of -19.0% [3] - **US High Yield (HY)**: Expected total return of 2.4% with a volatility of -3.9% [3] Important but Overlooked Content - **ETF Flows**: The report tracks daily fund flows across approximately 5,000 ETFs globally, covering around $7 trillion in assets, which provides insights into cross-asset sentiment and positioning [19] - **Market Sentiment Indicator (MSI)**: The MSI aggregates survey positioning, volatility, and momentum data to quantify market stress and sentiment, indicating a shift towards risk-on or risk-off signals [57] - **COVA Framework**: The correlation-valuation (COVA) scorecard identifies good portfolio diversifiers at reasonable prices, rewarding assets with negative correlation to equities and stable correlations [62][64] Conclusion - The report provides a comprehensive overview of the current state of the cross-asset market, highlighting key trends, forecasts, and sentiment indicators that could influence investment decisions in the near future.

Market Sentiment - The CNN Money Fear and Greed index improved, moving to the "Neutral" zone with a current reading of 46.0, up from 43.7 [5][6] - U.S. stocks showed mixed results, with the Dow Jones index gaining over 250 points, closing higher by around 270 points to 49,266.11 [1][4] Sector Performance - Defense stocks experienced significant gains, with Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) rising 14%, Red Cat Holdings, Inc. (NASDAQ:RCAT) increasing by 13%, and Karman Holdings Inc. (NYSE:KRMN) up by 10% [2] - Most sectors on the S&P 500 closed positively, particularly energy, consumer staples, and consumer discretionary stocks, while health care and information technology sectors closed lower [4] Economic Data - U.S. initial jobless claims rose by 8,000 to 208,000 for the week ending Jan. 3, slightly below market expectations of 210,000 [3] - The U.S. trade deficit decreased to $29.4 billion in October, the smallest since June 2009, compared to a revised $48.1 billion in September and market estimates of a $58.1 billion gap [3]

Core Insights - Palantir Technologies Inc. (PLTR) has experienced a decline of -1% since the last report, contrasting with the S&P 500's increase of +2.3%, indicating a shift in market sentiment towards the company [1] Company Performance - The performance of Palantir Technologies Inc. is under scrutiny as it shows a negative trend compared to the broader market index [1]

Group 1: Company Performance - Starfighters Space Inc. (AMEX:FJET) experiences a stock price drop to $14.38, reflecting a 54.32% decrease post-IPO, initially priced at $3.59 per share, indicating significant volatility [1][6] - Northann Corp. (NYSE American:NCL) sees its stock price fall to $0.13, a 48.23% decline, facing compliance issues with NYSE American regarding stockholders' equity by January 7, 2026 [2][6] - Nuvation Bio Inc. (NUVB-WT) reports a stock price decline to $0.32, a 47.24% decrease, amidst challenges in the oncology therapeutics sector [3] - X3 Holdings Co Ltd. (NASDAQ:XTKG) faces a dramatic stock price drop to $0.16, reflecting a 90.36% decrease, amid significant market challenges [4][6] Group 2: Market Sentiment and Industry Challenges - The stock movements of these companies reflect a variety of factors, including market sentiment, industry-specific challenges, and broader economic conditions [5]