Goldman Sachs Group strategists raised their forecasts for U.S. stocks, saying that the rally that pushed the country's benchmark index to record highs will continue until next year. Strategist David J. Kostin and others wrote, "We expect the S&P 500 Index to climb 9% to 5,100 points by the end of 2022, and the total return including dividends is expected to reach 10%." Goldman Sachs previously predicted that the index will be by the end of next year. Will rise 4% to 4,900 points.

With risk appetite overshadowing inflation and underweight concerns, global fund managers’ over-allocation in U.S. stocks has reached its highest level since August 2013. According to a survey conducted by the Bank of America on November 5-11, investors are now more constructive about global economic growth and corporate earnings. 51% of respondents expect the inflation rate to fall. The survey shows that the allocation of US stocks by fund managers increased by 13 percentage points from the previous month, and the over-allocation ratio reached 29%.

U.S. retail sales increased for the third consecutive month in October, as rising prices boosted business income, while household demand remained strong. Data released by the Ministry of Commerce on Tuesday showed that overall retail sales rose 1.7% last month, the largest increase in seven months, while the September figure was revised upwards to an increase of 0.8%. Retail sales excluding gasoline and automobiles rose 1.4% in October. These data have not been adjusted for price. Bloomberg surveyed economists' median forecast for retail sales in October of 1.4%.

US Treasury bonds are under pressure, and the inflation rate of TIPS (TIPS) break-even inflation rate rose to an intraday high, due to better-than-expected retail sales data in October. The US 10-year Treasury bond futures fell to 130-06+, falling below the intraday low and Monday's low; the 10-year Treasury bond yield was around 1.62%, slightly higher than the previous trading day. The breakeven inflation rate of the 5-year TIPS climbed to 3.24%, a record high. After the data was released, the medium-term government bonds led the decline, the yield curve flattened, and the 5s30s yield gap narrowed to an intraday low of 71.6 basis points. The trading volume of 10-year Treasury bond futures reached approximately 30,000 in 3 minutes.

U.S. Treasury Secretary Janet Yellen said that she will inform Congress in "a day or two" how long members must take action to raise or suspend the debt ceiling to prevent the government from depleting all cash. In an interview with National Public Radio on Tuesday, Yellen said, "We may be able to make it through December 3. We may have this resource, but there will be not much time after that." The Ministry of Finance has been using so-called unconventional measures since last month to help avoid running out of funds. The department stated earlier this month that of the approximately US$369 billion in cash obtained through unconventional measures, US$182 billion has been spent.

The Organization of the Petroleum Exporting Countries (OPEC) stated that as the economic recovery has stalled after the epidemic, the global oil market will change from insufficient supply to oversupply as soon as next month. OPEC Secretary-General Mohammad Barkindo said that this outlook means that it is reasonable for OPEC to increase production only at a moderate pace. The above comments once again show that OPEC and its partner countries will continue to resist the pressure of the United States to accelerate production increases, and will adhere to the earlier strategy at the meeting at the beginning of next month.

Musk exercised options and sold more Tesla shares, which pushed the stock to record the biggest decline since March 2020 last week. The series of sales actions continued. Regulatory filing documents show that the world's richest man on Monday reduced his holdings of more than 934,000 shares for approximately US$930 million. After he launched an investigation on Twitter and asked whether he should sell 10% of his Tesla shares, he has sold $6.9 billion in stocks last week. These stock sales are intended to help them pay the income tax on the exercise of 2.1 million options.

Risk Warning: The above content is for reference only, and does not represent JRFX’s position. JRFX does not assume any form of loss caused by any trading carried out in accordance with this article. Please consult your financial planner for your investment portfolios and manage your own risk.

JRFX is an online CFD broker providing more than 50 products for Forex, metals and commodities. Open a trading account within a minute. Deposit 100USD and download our MT4 trading platform now!