Weekly Review (March 6-10)
STOCKS
Global stocks were mostly lower during the week as Fed Chair Powell said that strong economic data could trigger the need for higher interest rates than previously anticipated, thus leaving the door open for a bigger 50 basis point increase to the rate later this month. Markets are now pricing in a 70% chance of a 50-basis-point rate hike at the Fed's March 21-22 policy meeting. Wall Street stocks finished lower on Thursday as investors were nervous ahead of a key payroll report Friday that could affect the direction of interest rates. The S&P 500 slid 1.85%, the Dow Jones Industrial Average dove 1.66%, and the Nasdaq Composite shed 2.05%. Both the S&P and Nasdaq are on track for weekly losses of 3% or more. In Asia, Nikkei 225 index fell even as the Bank of Japan held interest rates at record lows and signaled no changes in its yield curve control measures. Earlier in the week, a string of weak Chinese economic readings dented sentiment towards the region.
10.03.2023
1127
Weekly Review (February 27-March 3)
STOCKS
US stocks saw slight gains at the start of the week, licking wounds after suffering their biggest losses of 2023 last week. However, Wall Street equities began March with bearish tone as bond yields continued their climb. The benchmark 10-year yield topped 4% for the first time since November while the 1-year Treasury yield rose above 5%. Equities were also pressured by fresh hawkish comments from Fed officials. Minneapolis Federal Reserve President Neel Kashkari said that he’s open to the possibility of a larger interest rate increase at this month’s policy meeting. On Thursday, stocks closed higher to shake off earlier weakness after Atlanta Fed President Raphael Bostic said that he “still very firmly” supported raising interest rates in quarter-point increments. Against this backdrop, the S&P 500 added 0.76%, the tech-heavy Nasdaq Composite advanced 0.73%, while the blue-chip Dow Jones Industrial Average gained 1.05%.
03.03.2023
1134
Weekly Review (February 20-24)
STOCKS
Global stocks were on the defensive during the week as higher rates continued to pressure market sentiment, and the latest batch of earnings raised concerns about the state of the consumer. As such, Home Depot missed revenue expectations for the first time in four year and lowered its outlook for the year ahead. The company’s stock fell more than 7% after the release even as executives boosted the stock dividend for its investors. The sentiment has improved marginally ahead of the weekend, with US equities turning higher after four bearish sessions in a row. The S&P 500 gained 0.53%, the Dow Jones gained 0.33%, and the Nasdaq Composite rose 0.72% on Thursday. Still, the major indices are on pace to end the week in negative territory as investors remain concerned about the Fed’s rate hikes.
24.02.2023
1136
Weekly Review (February 13-17)
STOCKS
Global equities were mostly on the defensive during the week as investors digested a series of strong economic data out of the United States. Consumer prices rose 0.5% in the first month of the year, and 6.4% on an annual basis, more than expected. The so-called core CPI, which strips out the volatile food and energy components, came in higher than forecast as well. January’s producer price index rose 0.7% on the month versus the expected increase of 0.4%. Furthermore, initial jobless claims unexpectedly fell for the week ending February 11, suggesting the labor market remains tight. The latest reports bolster investors' expectations that the US central bank would keep monetary policy tight for some time to fight stubbornly high inflation. As such, US stocks fell on Thursday amid further signs that the economy remains resilient despite the Federal Reserve’s rate hikes.
17.02.2023
1173
Weekly Review (February 6-10)
STOCKS
Wall Street stocks advanced earlier in the week in reaction to Powell’s latest comments. The Federal Reserve Chair said inflation is starting to ease. Of note, markets shrugged off the fact that Powell cautioned that interest rates could rise more than markets anticipate if the economic data doesn’t cooperate. On Thursday, however, US stocks finished lower despite upbeat quarterly earnings as investors expressed concerns over Federal Reserve’s monetary policy outlook. Many market participants bet that the central bank will have to do a lot more tightening that the market is pricing in at this stage. The Dow Jones Industrial Average lost 0.73%, the S&P 500 slid 0.9% and the Nasdaq Composite dropped 1.02%, driven lower by a decline in Meta. In Asia, equities saw a bearish session as well, to register the second weekly loss in a row, with MSCI's broadest index of Asia-Pacific shares shedding 0.91%.
10.02.2023
1098
Weekly Review (January 23-27)
STOCKS
Investor sentiment in the global financial markets has improved towards the end of the week. Market players were buoyed by a stronger-than-expected fourth quarter GDP report that helped ease concerns over a possible recession. The US economy grew by 2.9% on an annualized basis in the three-month period from October through December while traders expected the report to show the economy had expanded by 2.6%. against this backdrop, Wall Street equities finished higher on Thursday. The Dow Jones gained 0.61%, notching its fifth consecutive winning session. The S&P 500 rose 1.10% and the tech-heavy Nasdaq Composite rallied 1.76%. However, stock index futures fell Friday morning as investors look ahead to economic reports (personal income and spending and pending home sales for December) due later in the day.
27.01.2023
1122
Weekly Review (January 16-20)
STOCKS
Wall Street stocks were mixed-to-lower this week amid uneven quarterly earnings from major companies. Goldman fell after the bank reported its worst earnings miss in a decade for the fourth quarter. Meanwhile, Morgan Stanley rallied as the giant posted better-than-expected quarterly numbers. In Asia, investors were more optimistic even as the Bank of Japan announced no change to its yield curve control policy. The Nikkei 225 in Tokyo jumped after the Bank of Japan surprised markets by keeping its yield curve tolerance band unchanged. Meanwhile, the People’s Bank of China kept its benchmark loan prime rate at historic lows on Friday. US stocks ended lower on Thursday as investors digested the latest signals from Fed officials. Federal Reserve Bank of Boston President Susan Collins said she favors a more moderate pace of interest-rate increases. The Dow Jones lost 0.76%, the S&P 500 fell 0.76%, and the Nasdaq Composite shed 0.96%. The S&P and Nasdaq have each lost more than 2% on a weekly basis.
20.01.2023
1149
Weekly Review (January 9-13)
STOCKS
Global equities were mostly positive during the week. The upbeat tone persisted following the release of U.S. inflation data on Thursday. Of note, European markets closed at their highest level since April 2022, with most sectors and major bourses in positive territory. On Wall Street, the S&P 500 added 0.3%, while the Dow Jones Industrial Average and the technology-heavy Nasdaq Composite rose 0.6% each. Meanwhile, the yield on the benchmark 10-year US Treasury note fell to 3.4% from 3.5%. Asian stocks cheered a slowdown in US inflation as well, with MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.8% to hit a new seven-month high. In China, stocks rose amid continued optimism over an economic rebound in the country, after the country reopened its international borders for the first time in three years.
13.01.2023
1115
Weekly Review (January 2-6)
STOCKS
Wall Street stocks finished lower on Tuesday to buck the global rally in the first trading session of 2023. The fact that equities gave up early gains suggests last year’s worries about rising rates and high inflation continued to persist. Adding to the pressure on the broader market, shares of Tesla fell more than 10% after the company delivered fewer vehicles than expected last quarter. The FOMC meeting Minutes showed on Wednesday that the Committee members agreed on the need to push the monetary policy further into the restrictive stance, thus underscoring how the central bank remains determined to keep rates high to crush inflation. Stocks in the US closed lower on Thursday after strong jobs data suggested that the Federal Reserve will keep raising interest rates. The S&P 500 gave up 1.2%, the Dow Jones shed 1.0%, while the tech-heavy Nasdaq Composite tumbled by 1.5%.
06.01.2023
1150