In the opening hours of the U.S evening session, stock futures remained largely unchanged. The S&P 500 is hovering slightly above 5,300, while the Nasdaq 100 is close to 18,400, and the Dow Jones Industrial Average is just under 39,900. Meanwhile, WTI Crude Oil gained about 50 cents, surpassing $63 per barrel for the first time in a week. Gold is poised for a second consecutive session of gains, staying above $3,360 after two days of stabilization.
Today's stock market session saw declines, particularly in the Tech and Consumer Discretionary sectors, dragging the S&P 500 downward. Energy emerged as the sole gaining sector within the index. Semiconductor stocks took a hit, with Advanced Micro Devices (AMD), Nvidia (NVDA), and Applied Materials experiencing losses exceeding 5%. This downturn followed Nvidia's announcement of a $500 billion charge in the first quarter, linked to new export regulations in China.
Federal Reserve Chair Jerome Powell delivered a cautious outlook on the economy while maintaining a hawkish stance on interest rates. Despite pressure to reduce rates, Powell signaled that the Fed would proceed cautiously with any rate cuts, even if economic growth slows. The CME Fed Watch tool adjusted its projections, increasing the likelihood of a rate hold in June to 32% from a previous 28%. Nevertheless, the tool still reflects over a 50% chance of rates decreasing by 100 basis points by year-end.
In corporate earnings, Liberty Energy (LBRT) rose 5.9%, and Rexford Industrial Realty (REXR) climbed 2.7%. Hertz Global (HTZ) surged 38.2%, driven by momentum following a 56% rise in regular trading after Pershing Square, led by Bill Ackman (Trades, Portfolio), acquired a stake. Conversely, Alcoa (AA, Financial) slipped 2.2%, and QXO, Inc. (QXO) dropped 8.1% following an equity offering announcement.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 9 analysts, the average target price for Alcoa Corp (AA, Financial) is $38.78 with a high estimate of $49.00 and a low estimate of $26.00. The average target implies an upside of 54.70% from the current price of $25.07. More detailed estimate data can be found on the Alcoa Corp (AA) Forecast page.
Based on the consensus recommendation from 12 brokerage firms, Alcoa Corp's (AA, Financial) average brokerage recommendation is currently 2.3, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Alcoa Corp (AA, Financial) in one year is $30.17, suggesting a upside of 20.34% from the current price of $25.07. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Alcoa Corp (AA) Summary page.
