With high returns in a time of financial uncertainty, the strength of the US economy is evident. Here are the stocks to watch closely.
Stock markets in the US are withstanding the hard blow caused by rating agency Fitch’s decision to downgrade the United States’ long-term rating from AAA to AA+.
Fitch changes US credit forecast
Fitch’s decision to change America’s long-term rating was driven by a pessimistic outlook about the expected financial downturn over the next three years.
This event followed a slight contraction in the S&P 500 index and the Nasdaq. On the other hand, the Dow Jones index rose again to its highest level since February 2022.
US stock market shows resilience
Despite the challenges, the US stock market has demonstrated resilience and ability to withstand adverse economic conditions, posting high returns despite global market and financial uncertainties. This makes the prospects for a US stock index rally plausible, potentially extending into early 2024.
Apple and Amazon quarterly reports
The financial world is awaiting the release of the second quarter results of two tech giants: Apple and Amazon. These two companies are posting growth of more than 50% over the course of 2023, and are in a position of great interest to investors.
The anticipation for Apple
Apple, the global emblem of technology and innovation, showed an excellent return in 2023. Its performance on the stock market exceeded expectations, increasing investor interest. Investors’ eyes are now turning to the second quarter report to be released this week, which could confirm the company’s positive trend.
Amazon continues to grow
Amazon, for its part, is a major player in e-commerce and cloud services. Its shares have grown exponentially in 2023. With a strategy of continuous expansion and an ever-expanding portfolio of services, Amazon has managed to maintain investor confidence.
Final Considerations
Despite global economic challenges and the inevitable long-term rating downgrade by Fitch, the US stock market has demonstrated remarkable resilience. With high returns in a period of financial uncertainties, the strength of the US economy is evident. Growth expectations for US stock indices appear to potentially extend into early 2024, fueling growing optimism among investors.
Attention now turns to the second quarter results of tech giants like Apple and Amazon, whose performance could provide further insight into the health of the economy. With an increase of more than 50% during 2023, the growth of these companies is a key indicator of the dynamism of the US economy.
In the near term, the market is awaiting the US jobs report, which could offer further insight into the country’s economic conditions. Following a strong month for US stock indices, the S&P 500 and Nasdaq are expected to continue posting significant gains, consolidating their fifth consecutive month of growth.
Thus, despite the headwinds of the rating downgrade, the horizon looks promising for US equity indices. As always, however, investors will have to remain vigilant and ready to adapt to a market environment in constant evolution.
Original article published on Money.it Italy 2023-08-02 15:42:01. Original title: Occhi puntati sul mercato azionario USA dopo il declassamento di Fitch
