The Convergence of Tech and Reality in Stock Markets

Leaders speak
In his first televised address since the Wagner Group marched on Moscow, Russian President Vladimir Putin said organizers of the armed mutiny will be “brought to justice” and that his military would have crushed the rebellion. Separately, U.S. President Joe Biden said the U.S. “had nothing to do with [the events], this was part of a struggle within the Russian system.”

Microsoft wants explosive growth
According to a court filing, Microsoft CEO Satya Nadella wants the tech giant to hit $500 billion in revenue by fiscal 2030, more than double its 2022 revenue. Nadella aims for a growth rate of at least 10% per year.

On track for 5%
Chinese Premier Li Qiang announced at the World Economic Forum’s Annual Meeting of the New Champions that China is expected to achieve its annual growth target of “around 5%.” This comes as the Chinese economy has been experiencing slower-than-expected economic activity in recent months. Aramco’s CEO Amin Nasser also predicts continued growth in oil demand from China and India.

[PRO] Imminent drop in the S&P?
Morgan Stanley’s chief U.S. equity strategist, Mile Wilson, believes that there are significant risks for a major correction in the stock market due to four factors. Wilson predicts that the S&P 500 will drop to 3,900 in the fourth quarter, making it one of the most bearish outlooks on Wall Street.

The attempted insurrection in Russia over the weekend has dominated headlines, but it seems to have had little impact on investors’ minds. Macro factors continue to be the main drivers of risk assets, according to Barclays’ Global Chairman of Research Ajay Rajadhyaksha.

Furthermore, technology stocks experienced a sell-off as investor enthusiasm for artificial intelligence waned and gave way to a more realistic view of current economic conditions.