News

Published: Jan 24, 2023
Updated: Jan 24, 2023

Revived Trade Hopes Boost US Markets, Nasdaq Powers Ahead After Alphabet Layoffs

The US markets saw a positive trend on Friday as trade hopes were revived once more. The Dow rose by 331 points, the S&P 500 by 74 points, and the Nasdaq by 288 points. Nasdaq, in particular, saw a significant boost after Google-parent Alphabet's announcement of layoffs.

Fed's Decision on Interest Rates:

Fed officials Harker and Waller both prefer a 25 bps increase, which would have a significant impact on the markets.

Alphabet's Layoff Announcement:

Google made the decision to fire 12,000 employees public and conducted a thorough evaluation of its product objectives. The move had a positive impact on the Nasdaq, which powered ahead.

Bond Yield and Crude Oil Prices:

The US10Y bond yield rose 9 bps to 3.48%, while crude oil prices rose around 1% to a two-month high.

Upcoming Market Events:

This week, markets in China and Korea are closed all week. On Tuesday, Europe and the UK will release flash PMI, and there will be earnings from Verizon, J&J, GE, Lockheed Martin, 3M, and Microsoft. On Wednesday, Canada will announce a rate decision, and there will be earnings from AT&T, Boeing, Abbott, Tesla, and IBM. On Thursday, the US will release Q4 GDP and weekly jobless claims, and there will be earnings from American Airlines, SAP, Mastercard, Blackstone, Intel, and Visa. On Friday, the US will release PCE inflation and University of Michigan consumer sentiment, and there will be earnings from Chevron, American Express, and LG.

Eye on important events this week:

Overall, the US markets saw a positive trend on Friday, driven by revived trade hopes and the impact of Alphabet's layoff announcement. The upcoming week will be an important one for the markets, with key announcements and earnings releases from major companies. Investors will be closely watching the Fed's decision on interest rates and the impact it will have on the markets.