News

Published: Jan 8, 2023
Updated: Jan 8, 2023

First week of 2023 ends with a big rally in U.S Markets

For the first time this year, the US markets ended in the positive territory with the Dow Jones Industrial Average was up by 700.53 points (2.13%) and closed at 33,630.61. The S&P 500 index ended at 3895.08 up by around 86.98 points (2.28%). The Nasdaq Composite too well ended at 10569.29 up by 264 points (2.60 %).

What led to the Friday Rally?

Data suggesting Easing Inflation

The strong rally in the US markets after days of volatility amidst fear of rate hikes by the US FED, came after the release of the economic survey data which gave the signs that the Inflation is moving towards the desired targets set by the FED and the rate hikes might slow down in 2023.

Strong non-agricultural payrolls report but wage growth slower than expectations

The latest nonfarm payroll report for December showed positive employment growth in the United States, with the economy adding 223,000 jobs. This was slightly higher than the predicted 200,000 jobs forecasted by economists surveyed by the Dow Jones. However, wage growth was slower than expected, with a 0.3% increase on the month rather than the anticipated 0.4%.

Investors are optimistic about Inflation cooling down

Investors are optimistic about the future as the latest data suggests that inflation is moving closer to the target set by the Federal Reserve. Slowing average hourly earnings indicate that inflation is slowing, which is seen as a positive development by investors

Stocks Rise as Fed's Rate Hikes Appear to Slow Economy

Stocks experienced an increase in value when the Institute for Supply Management's nonmanufacturing purchasing managers' index revealed that the services sector contracted in December. This is seen as an indication that the Federal Reserve's rate hikes may be effective in slowing the economy.

Positive Opening in Indian Markets on Monday?

The positive rally in the US market is expected to give a strong start to the Indian markets when they open on Monday. The recent increase in stock values, fueled by the Federal Reserve's rate hikes appearing to slow the economy, has investors feeling optimistic about the potential for continued growth in the market. Many believe that this positive momentum will carry over into the start of the trading week in India, leading to a strong opening for the market. It will be important to closely monitor developments in the US market and any potential global economic trends that may impact the Indian market. However, for now, the outlook is positive and traders are hopeful for a successful start to the week.