It Girl Identity: Issue 26

Grab your iced cherry chai, dive into this week’s market movers, learn about the common (and not so common) finance careers!

Renata Bayazitova, Jess Huang, Kristina Nasteva & Pranavi Mallan
March 31, 2025

It Girl Identity Newsletter

What’s Moving Markets

Wall Street experienced significant movement this week, with rental car stocks (Avis, Hertz) soaring due to increased demand from auto tariffs. Meanwhile, auto parts retailers (O’Reilly, Advance Auto Parts, AutoZone) also saw gains as consumers chose to repair their existing vehicles rather than buy new ones. On the downside, automakers (GM, Ford) and auto parts suppliers (Aptiv, Magna International) faced declines amid concerns over rising costs from new tariffs. Additionally, financial stocks (Jefferies, UBS) struggled due to weak earnings and regulatory risks, highlighting the ongoing volatility in the market.

What’s Up

Rental Car Stocks: Avis Budget Group (CAR) up 20.49% and Hertz Global Holdings up 22.61% as auto tariffs boosted demand for rental cars.
Auto Parts Retailers: O’Reilly Automotive (ORLY) gained 3.09% and Autozone (AZO) up 3.99% as auto parts retailers have benefited from rising car repair demand.
Winnebago Industries (WGO): Rose 8.18% despite lowering its fiscal guidance for the coming year.
Alibaba (BABA): Rose 2.59% after announcing its new open-source AI model.
Dollar Tree (DLTR): Continued its climb, up 11.18% after cutting ties with Family Dollar.
Petco Health and Wellness (WOOF): Exploded 31.56% on higher-than-expected fiscal forecasts.
Oil Prices Dip but Hold Weekly Gains: Oil prices fell on Friday due to concerns over weaker demand from tariff disputes. However, the overall outlook remains bullish as global supply remains tight, especially with U.S. sanctions on Venezuela and Iran.

What’s Down

CoreWeave’s IPO Disappoints: CoreWeave, a cloud computing firm, lowered the size of its U.S. IPO and priced its shares below expectations. This signals weaker investor interest in tech IPOs, which were expected to rebound this year.
GameStop (GME): Tumbled 22.16% after announcing plans to raise $1.3 billion in debt to buy Bitcoin.
Jefferies Financial Group (JEF): Dropped 9.88% after posting worse-than-expected Q1 results.
UBS (UBS): Declined 3.91% after Bank of America downgraded it over Swiss regulatory risks.
Advanced Micro Devices (AMD): Fell 3.21% after Jefferies downgraded the stock due to rising competition from Nvidia.

Markets & Economy

S&P 500 Forecast Lowered: Goldman Sachs now expects the S&P 500 to hit 6200 by year-end instead of 6500 due to slower U.S. economic growth and trade uncertainty. That’s still a 7 percent increase from here. Historically, when the market drops 10 percent, there’s a 76 percent chance it rebounds in six months. Experts suggest investing in low-risk stocks that aren’t heavily affected by economic changes or AI trends.
US Debt Concerns Growing: The U.S. debt situation is worsening. The Congressional Budget Office (CBO) projects that federal deficits will grow from 6.2% of GDP in 2025 to 7.3% in 2055. If that happens, U.S. debt will reach 156% of GDP, surpassing World War II levels. Rising interest costs and slower economic growth could make the situation even worse.
AI and the Future of Work: Companies are still figuring out how to use AI. Goldman Sachs' CIO, Marco Argenti, says AI is like the cloud—it won’t replace jobs but will help people work smarter. The challenge is training employees to use AI effectively.
Will US Stocks Fall More: Even after a 10 percent drop, Goldman Sachs still sees a chance of more losses due to a slowing economy and trade worries. A recovery depends on better economic data or policy changes. To stay safe, investors should focus on defensive stocks and a balanced portfolio.
Europe’s Tech Struggles: Europe wants to compete with Silicon Valley but lacks venture capital for startups. Wise co-founder Taavet Hinrikus says European investors don’t have enough experience backing young companies. He suggests investing more in deep tech, using Estonia’s startup scene as a model for success.

Finance Careers Breakdown

This week we’ll be talking about some common (and not so common) careers in finance.

Investment Banking

Career Description: Investment bankers help companies raise money by selling stocks and bonds. They also advise businesses on buying or merging with other companies. This role involves long hours and intense analysis to make informed financial decisions.
Recruitment Cycle: On-cycle (typically recruiting for summer internships in the fall/spring of the previous year).
Specific Skills: Strong financial modeling, valuation techniques, analytical thinking, and proficiency in Excel are crucial.

Commercial Banking

Career Description: Commercial bankers provide loans to businesses and individuals and help them manage their finances. They assess creditworthiness to determine if a loan can be approved. Building relationships with clients is a key part of this job.
Recruitment Cycle: On-cycle (recruiting primarily in the fall/spring for summer internships).
Specific Skills: Relationship management, credit analysis, and financial statement analysis are key.

Asset Management

Career Description: Asset managers invest money on behalf of clients, aiming to grow their wealth over time. They research different investment options like stocks and bonds to build portfolios. Understanding market trends and managing risks is essential in this role.
Recruitment Cycle: On-cycle (generally recruits in the fall/spring for summer internships).
Specific Skills: Strong analytical abilities, portfolio analysis, and knowledge of financial markets are important.

Equity Research

Career Description: Equity researchers study companies to determine if their stocks are worth buying or selling. They analyze financial statements and industry trends to make recommendations. This role requires strong writing skills to communicate findings in reports.
Recruitment Cycle: On-cycle and Off-Cycle (typically recruiting in the fall/spring for summer internships, however also go off of ongoing hiring based on firm needs).
Specific Skills: Financial modeling, industry analysis, and strong writing skills are essential for preparing reports.

Quantitative Analyst (Quant)

Career Description: Quants use math and computer models to analyze data and make investment decisions. They help firms identify profitable opportunities by developing complex algorithms. This role often requires advanced statistical skills and programming knowledge.
Recruitment Cycle: On-cycle (mostly in the spring for summer internships).
Specific Skills: Strong programming skills (Python, R), statistical analysis, and financial modeling are critical.

Assurance (Economics)

Career Description: Economists in assurance roles study economic trends to help businesses understand risks and opportunities. They analyze data to provide insights that guide financial decisions. Good communication skills are essential for explaining complex information clearly.
Recruitment Cycle: On-cycle (recruiting primarily in the fall/spring for summer internships).
Specific Skills: Economic analysis, data interpretation, and strong communication skills are necessary.

More Niche Roles

Career Description: Niche roles in finance, such as compliance or fintech, focus on specialized areas of the industry. These positions can involve ensuring that companies follow laws or developing new financial technologies. Skills vary widely depending on the specific role.
Recruitment Cycle: Often off-cycle (can vary by firm).
Specific Skills: Depending on the role, skills may include regulatory knowledge, programming, or data analysis.

Disclaimer: Information shared here is for educational purposes only. Consult a financial advisor for personalized advice.

It Girl Recommendations

Tailored to incoming college sophomores entering prep for 2027 recruitment cycles, here are some top prep resources.

Wall Street Prep: Provides online courses that teach financial modeling, valuation, and Excel skills vital for finance careers. With hands-on exercises and video tutorials, students gain a solid grasp of essential finance concepts, preparing them for internships and entry-level roles. Certifications from Wall Street Prep also boost your resume and credibility in the finance world.
Wall Street Oasis: Is a lively online community for finance enthusiasts. It offers a variety of resources, including interview questions for technical, behavioral, and brain teaser formats relevant to finance internships and careers. Users can engage in discussions, ask questions, and share advice, making it a great platform for networking and gaining real-world insights.
Mergers & Inquisitions: Delivers valuable articles and guides on entering investment banking and private equity. The site offers practical tips for resume writing, interview prep, and navigating the recruitment process. The "Day in the Life" series provides a glimpse into the daily experiences of finance professionals, helping you understand various career paths in the industry.

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See you next Monday, It Girls!

With Love,

It Girl Identity