The SPDR S&P 500 ETF (NYSEMKT: SPY) is down 1.59% at 1:45 PM ET as U.S.- China trade tensions are back in the headlines and the government shutdown continues into the weekend.
The U.S. government shutdown, now in its tenth day, has stalled key economic data, leaving investors to navigate uncertainty with limited visibility. President Trump’s threat of a “massive increase” in tariffs on Chinese goods, combined with China’s new port fees on U.S. ships and tightened rare earth mineral export controls, has heightened market anxiety, dimming prospects for a near-term rally.
A potential lift for markets may come from corporate earnings, with major banks like JPMorgan and Citigroup set to report Q3 results next week, which is the unofficial start to earnings season.
S&P 500 Upgrades
Abbott (NYSE: ABT) surged after Benchmark initiated coverage with a Buy rating and a $145 price target. The firm praised Abbott’s diversified portfolio across diagnostics, devices, and nutrition, projecting mid-single-digit sales growth and double-digit EPS growth. Despite trade tensions impacting global markets, Abbott’s international exposure and resilient business model bolstered investor optimism, supporting share gains.
T-Mobile (NASDAQ: TMUS) climbed as Benchmark raised its price target to $295 from $275, maintaining a Buy rating. The firm cited T-Mobile’s network superiority as a key driver of market share gains, even as economic uncertainty from the government shutdown looms. Strong KPI performance fueled positive sentiment, positioning T-Mobile to weather macro headwinds.
Oracle (NYSE: ORCL) rallied after Citi raised its price target to $415 from $395 and Evercore ISI lifted its target to $350 from $340, both keeping Buy/Outperform ratings. Analysts highlighted Oracle’s expanding cloud and AI infrastructure growth, with Evercore projecting FY30 OCI revenue could hit $200 billion. Despite trade tensions and shutdown-related uncertainty, Oracle’s robust fundamentals drove investor enthusiasm.
McDonald’s (NYSE: MCD) gained ground as Guggenheim raised its price target to $295 from $310, maintaining a Neutral rating. Despite broader market pressures from trade tensions and the government shutdown, the firm noted McDonald’s resilient global footprint and menu innovation could help offset weakening consumer sentiment, with adjusted EPS forecasts for 2025 and 2026 trimmed slightly to $12.20 and $13.25, respectively. Analysts see potential for steady same-store sales growth to support shares amid economic uncertainty.
Procter & Gamble (NYSE: PG) edged higher after JPMorgan lifted its price target to $163 from $170, keeping a Neutral rating. The consumer goods giant’s diversified portfolio in household essentials positions it well against tariff impacts and shutdown-related volatility, though the firm anticipates a soft Q3 due to depressed U.S. demand and retailer inventory cuts. JPMorgan expects PG’s pricing power and international exposure to drive modest organic growth, offering a defensive play in the current environment.
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