Stocks Continue Run:
The stock market saw a rally on the speculation that the Federal Reserve will be able to slow its pace of interest rate hikes, as inflation shows signs of cooling. This speculation helped send the S&P 500 above the 3,900 mark, which could attract more equity buyers. Tech stocks, which have been negatively impacted by the Fed’s tightening, drove the Nasdaq 100 up over 2%. The risk-on push also boosted global assets, with the MSCI Emerging Markets Index set to enter a bull market after surging over 20% from its October low. Meanwhile, the dollar weakened against most of its major peers and headed towards its weakest point since June, and Treasury 10-year yields retreated, approaching 3.5%. Investors are eagerly awaiting the release of the US consumer price index (CPI) report, which will come out nearly a week after the latest jobs data showed that wage growth has softened. The figures will be among the last such readings policy makers will see before their next meeting on January 31-February 1. While officials have indicated that a half-point hike in interest rates is possible, economists are predicting a 25 basis-point increase in the Fed’s benchmark rate. Some analysts believe that corporate profit estimates are still too high, which could lead the S&P 500 to fall much lower than the 3,500 to 3,600 points that the market is currently predicting in the event of a mild recession. Oil prices rose on hopes of renewed Chinese crude buying and as the dollar continued to decline. Brazilian assets underperformed due to fears of political instability in the country.
Market Action
The S&P 500, a stock market index that tracks the performance of 500 large publicly-traded companies in the US, rose 1.1%. The Nasdaq 100, a stock market index that tracks the performance of 100 large technology and internet-based companies listed on the Nasdaq stock exchange, rose 2.2%. The Dow Jones Industrial Average, a stock market index that tracks the performance of 30 large publicly-traded companies in the US, rose 0.5%. The MSCI World index, a stock market index that tracks the performance of large and mid-cap stocks across 23 developed countries, rose 1.5%. The Bloomberg Dollar Spot Index, which tracks the performance of the US dollar against a basket of major currencies, fell 0.7%. The euro rose 1% against the US dollar, the British pound rose 0.8% against the US dollar, and the Japanese yen rose 0.2% against the US dollar. Bitcoin, a decentralized digital currency, rose 2.3%. Ether, a decentralized digital currency used on the Ethereum platform, rose 5.5%. The yield on 10-year US Treasury bonds declined four basis points, Germany’s 10-year yield rose two basis points, and Britain’s 10-year yield rose five basis points. The price of West Texas Intermediate crude oil rose 1.6%, and gold futures rose 0.3%.
Today’s Latest Analyst Ratings:
