Stocks fell for the second consecutive day as tariffs imposed by the Trump administration took effect, with the S&P 500 dropping 1.2% and wiping out nearly all gains since the November election. Canada and China retaliated with significant tariffs on U.S. goods, leading to a $3 trillion loss in market value. Major companies like GM, Ford, and Chipotle faced declines, while concerns about a softening economy and inflation expectations grew, prompting traders to anticipate multiple rate cuts from the Federal Reserve this year.
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Berkshire Hathaway’s Cautious Investment Strategy and Record Cash Reserves
Warren Buffett’s Berkshire Hathaway is adopting a cautious investment strategy, selling more stocks than it buys, including significant portions of Apple and Bank of America. The company holds a record $334.2 billion in cash, primarily in short-term Treasury securities, indicating a reluctance to invest in equities despite Buffett’s preference for them. His recent letter to shareholders suggests a lack of compelling investment opportunities, with further insights expected at the upcoming annual meeting.
about Berkshire Hathaway's Cautious Investment Strategy and Record Cash ReservesUS stock futures steady as bank earnings and inflation data approach
U.S. stock index futures stabilized after a decline driven by unexpected payroll data, with attention shifting to upcoming bank earnings and inflation reports. Major banks, including JPMorgan Chase and Wells Fargo, are set to release fourth-quarter results this week, while the consumer price index data will be crucial for assessing inflation trends and interest rate outlooks. Wall Street is grappling with concerns over persistent inflation and a strong labor market, which may influence the Federal Reserve’s approach to rate cuts.
about US stock futures steady as bank earnings and inflation data approachUS Jobs Report Signals Slowing Growth Ahead of 2025 Market Outlook
US employers are expected to have added 160,000 jobs in December, indicating a steady but slowing labor market as the year closes. Projections suggest the unemployment rate will hold at 4.2%, with wage growth cooling, reflecting a resilient economy that is not fueling inflationary pressures. Strategists from various firms have differing estimates, with some predicting job gains as high as 180,000, while others anticipate a more modest increase.
about US Jobs Report Signals Slowing Growth Ahead of 2025 Market Outlook