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Barclays flags U.S. economy at ‘stall speed,’ recession odds near 50% Investing.com -- Barclays said the U.S. economy has slowed to a pace that leaves it vulnerable to recession, with its updated “tipping points” model suggesting about a 50% chance of contraction within the next eight quarters. Analyst described the current phase as a “stall” state, a period when growth decelerates enough to raise recession risks without confirming one is underway. Barclays said this heightened susceptibility supports expectations that the Federal Reserve could start cutting rates in September. On positioning, the bank said hedge funds and systematic investors increased equity buying in August as volatility fell, while long-only managers and commodity trading advisers favored bonds over stocks. It cautioned that any weakness in labor data could accelerate this shift and weigh on equities, even as broader participation has supported the summer rally. In China, Barclays said wafer fab equipment demand has held up better than expected, and now sees 2025 industry sales falling about 5% rather than more sharply. It expects logic chips to account for about 70% of China’s market next year, before easing to 65% in 2026 as DRAM and NAND take a larger share. The bank added that EU chipmaker ASML faces limited substitution risk, while U.S. peers Lam Research and KLA are more exposed to Chinese competition. 3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads. ProPicks AI evaluates LRCX alongside thousands of other companies every month using 100+ financial metrics. Using powerful AI to generate exciting stock ideas, it looks beyond popularity to assess fundamentals, momentum, and valuation. The AI has no bias—it simply identifies which stocks offer the best risk-reward based on current data with notable past winners that include Super Micro Computer (+185%) and AppLovin (+157%). Want to know if LRCX is currently featured in any ProPicks AI strategies, or if there are better opportunities in the same space?

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Barclays flags U.S. economy at ‘stall speed,’ recession odds near 50% Investing.com -- Barclays said the U.S. economy has slowed to a pace that leaves it vulnerable to recession, with its updated “tipping points” model suggesting about a 50% chance of contraction within the next eight quarters. Analyst described the current phase as a “stall” state, a period when growth decelerates enough to raise recession risks without confirming one is underway. Barclays said this heightened susceptibility supports expectations that the Federal Reserve could start cutting rates in September. On positioning, the bank said hedge funds and systematic investors increased equity buying in August as volatility fell, while long-only managers and commodity trading advisers favored bonds over stocks. It cautioned that any weakness in labor data could accelerate this shift and weigh on equities, even as broader participation has supported the summer rally. In China, Barclays said wafer fab equipment demand has held up better than expected, and now sees 2025 industry sales falling about 5% rather than more sharply. It expects logic chips to account for about 70% of China’s market next year, before easing to 65% in 2026 as DRAM and NAND take a larger share. The bank added that EU chipmaker ASML faces limited substitution risk, while U.S. peers Lam Research and KLA are more exposed to Chinese competition. 3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads. Most investors will find it hard to answer that question with total confidence. Short of a guarantee, which no one can give you, the most successful traders stick to proven best practices without letting hype or hyper-vigilance take over their better judgment. But that doesn't mean you can't use smart shortcuts. If you're considering LRCX, try chatting with WarrenAI, our powerful AI financial assistant. It's just like ChatGPT for investors, but with access to 10 years of company data, a built-in screener, Wall Street analysts' reports, and earnings call transcripts for real-time, vetted insights. Even if you end up going with your gut feeling, at least you'll know why.

Click Subscribe. #USEconomy #RecessionRisk #Barclays #EconomicForecast #StallSpeed

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