Overnight US Stocks | Global Equity Markets Hit a Waterloo: Dow Jones and S&P 500 Indices Post Third Consecutive Week of Declines

Citigroup strategists suspect the market may have already peaked before the Federal Reserve takes action. Citigroup strategists including Dirk Willer maintain a 'slight' overweight position on equities, stating in their report: 'We suspect the market has already peaked ahead of the Fed’s move, as markets typically experience some adjustment following the Fed’s first rate hike.' The strategists advised investors to accumulate equities on dips during the early phase of the tightening cycle rather than brace for pullbacks; emphasized that rate hikes will not kill the equity market; and forecast a 'solid' full-year performance for stocks—albeit somewhat delayed in timing. Citigroup will continue to overweight U.S. equities, while underweighting both U.S. investment-grade bonds and U.S. high-yield bonds. Capital Economics stated that the Omicron variant will not impede the Federal Reserve’s rate hikes. Paul Ashworth, Chief Economist at Capital Economics, said the Omicron variant’s spread will not hinder the Fed’s path toward hiking rates. He noted: 'This week we learned that Omicron will significantly impact January’s employment and output data—but the situation may not be as dire as we feared.' He added: 'There are now clear signs that domestic U.S. Omicron cases have peaked.' Given this trajectory, the Fed is still expected to raise rates in March. 【Stock-Specific News】 Volkswagen (VWAGY.US) reached a settlement with the State of Ohio over the 'Dieselgate' scandal. Ohio’s Attorney General announced that the German automaker agreed to pay $3.5 million to settle claims with the state. Volkswagen was accused of violating Ohio law by manipulating software in its vehicles to conceal true carbon dioxide emissions. Volkswagen stated: 'This agreement fully resolves all outstanding matters in Ohio and puts this issue behind us, allowing us to focus on building a sustainable future.' Amazon (AMZN.US) and Meta (FB.US) again set records for lobbying expenditures in Washington. Data shows that Amazon—including its subsidiaries—and Meta—the parent company of Facebook—spent at least $20.3 million and $20.1 million respectively on lobbying in Washington last year, setting new records. Among the five largest U.S.-listed tech companies by market capitalization, Amazon and Meta led in lobbying spending, surpassing other major peers. According to corporate disclosures, Alphabet—the parent company of Google—and its subsidiaries paid at least $11.5 million, Microsoft paid $10.3 million, and Apple paid $6.5 million. Robinhood (HOOD.US) launched the beta version of its cryptocurrency wallet. Robinhood has rolled out the long-awaited beta test for its cryptocurrency wallet program, selecting the first 1,000 users from its waitlist of 1.6 million customers. The company stated that, under this beta testing program, customers will be able to transfer cryptocurrencies from their Robinhood accounts to external wallets—and vice versa. Peloton (PTON.US) CEO clarified reports about halting production of fitness equipment as false.

Bearish Aluminum Price Outlook After This Winter: Deutsche Bank Downgrades Alcoa (AA.US) to 'Hold'

According to an announcement by Zhitong Finance APP, Deutsche Bank downgraded Alcoa (AA.US) from 'Buy' to 'Hold', with a target price of $65. Analyst Sathish Kasinathan stated that although the company remains structurally optimistic about aluminum, aluminum prices are expected to decline after this winter due to China’s capacity cuts, the commissioning of new projects, and the restart of several previously idled smelters. Kasinathan noted that while free cash flow generation is expected to remain stable, this may be partially offset by expenditures related to key innovation initiatives. It is reported that LME aluminum prices rose 42% in 2021 and climbed another 2% last week to $2,980 per ton—its highest intraday level since October 21. At the time of writing, Alcoa’s stock was down 1.28% in pre-market trading. The stock recently surged to its highest level in 14 years, rendering its risk/reward profile more balanced.

Argus Downgrades Alcoa Corporation (AA) to HOLD

Oct 22, 2026

Argus Research downgraded Alcoa Corporation (AA) to HOLD, citing its role as a global provider of bauxite, alumina, and aluminum products. Shares currently trade at $38.70 within the S&P MidCap 400 Index.

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