U.S. stocks were on track as of Wednesday to tally their best Thanksgiving-week gains in at least 13 years. - Getty Images U.S. stocks rallied for a fourth straight day on Wednesday, having clawed back all of last week’s losses ahead of the Thanksgiving holiday. Gains made by Alphabet Inc. GOOG GOOGL and Broadcom Inc. AVGO since last Friday have helped breathe new life into the AI trade, while growing expectations for Federal Reserve interest-rate cuts bolstered rate-sensitive small caps and other corner ...

Well, the markets kicking off this shortened holiday week in rally mode. The tech trade popping as the odds of a Fed rate cut continue to climb. The December odds of a cut now back around 70% up from 33 on Friday.So, will the momentum carry into December. Joining us now is Truest Wealth Chief Investment Officer Keith Learner. Morgan Stanley Wealth Management Executive Director Dan Skellyy.Guys, happy Monday. Uh, Keith. >> Happy Monday.Is this market still priced for perfection or I guess enough of it becaus ...

Market Sentiment - The market is currently optimistic about any positive developments regarding China trade, which is expected to be well-received [1] - Recent market movements indicate a lack of significant downturns, with a notable negative impact from trade tensions, particularly affecting AI-related sectors and economic growth [2][6] Economic Indicators - Upcoming government data is anticipated to influence market sentiment, contributing to some jitters among investors [4] - October is historically a challenging month for the stock market, with a focus on earnings reports from large-cap tech and AI companies [5] Sector Performance - Defensive sectors, such as healthcare and utilities, have shown outperformance in October, which may indicate a rotation in investment strategies [5][14] - Despite recent momentum unwinding, the overall market remains up, suggesting a rotational move rather than a broad distribution [10][12] Global Market Trends - Global markets, including China, Japan, and Europe, are reaching new highs, indicating resilience despite local challenges [12] - The performance of consumer stocks appears to be improving, countering concerns about domestic economic conditions [7] Momentum and Market Dynamics - The current market is experiencing its first potential negative month in seven, with discussions around whether this momentum unwind is complete [9][15] - The breadth of the market remains relatively strong, with a significant percentage of companies still above their 200-day moving average, suggesting a consolidation phase rather than a corrective one [15][16]

Core Insights - Deutsche Bank raised its year-end target for the S&P 500 to 7,000 from 6,550, citing boosted earnings per share estimates for 2025 and a 7% increase above the index's record close [2][6] - Barclays also increased its year-end target for the S&P 500 to 6,450 from 6,050 and its 2026 target to 7,000 from 6,700, driven by strong corporate earnings and anticipated interest rate cuts [6][9] Earnings and Valuations - Deutsche Bank projects earnings growth of over 9.5% this year and nearly 14% next year, which is above the average for typical non-recession years [4] - Analysts believe stock valuations will remain high as companies maintain elevated payout ratios and earnings resilience [4] Market Sentiment and AI Impact - The ongoing enthusiasm around AI, particularly following Oracle's strong guidance, is contributing to the bullish outlook for stocks [2][6] - Both Deutsche Bank and Barclays highlight the AI boom as a significant factor in driving stock prices higher [6][9] Labor Market Concerns - Barclays expressed caution regarding emerging labor market risks that could potentially offset strong corporate earnings and AI-driven growth [10] - Despite these concerns, Barclays anticipates three Federal Reserve rate cuts this year to support economic stability [10] Sector Preferences - Deutsche Bank favors large growth stocks, tech shares, and financials while remaining underweight in defensive sectors such as consumer staples, utilities, and healthcare [8]