While continued resilience in the jobs market is good for stocks in the near term, John Lynch, chief investment officer for Comerica Wealth Management, says it could “limit the Fed’s ability to restrain financial conditions in their battle against longer-term inflationary pressures.” Those jobs brought the unemployment rate down to 3.4% - it’s lowest level in more than 50 years. added 517,000 jobs in January, more than double what experts expected. ![]() Data released last week showed that the U.S. One consequence of those hikes, experts and officials repeatedly warned, would be pain in the labor market and higher unemployment.īut that hasn’t happened. The Federal Reserve has been rapidly raising interest rates over the past year in order to cool the economy and curb inflation. stock market doldrums in 2023, according to Goldman’s experts. stock market - like cash and international stocks - are gaining popularity, and you have a recipe for more U.S. Goldman’s strategists say the stock market has already priced in a soft landing for the economy - what many view as a best-case scenario that means the Fed avoids causing a recession - and add that they predict interest rates will keep rising.Ĭombine that with the fact that corporate earnings aren’t expected to see much growth this year, a possible debt default, and the fact that assets outside of the U.S. equities remains limited and that the S&P 500 is unlikely to end the year substantially above our year-end target of 4000,” they wrote in a note to clients last week (as of Tuesday’s close, the S&P 500 is at 4,164 points). “There are several reasons we believe upside to U.S. Strategists from Goldman Sachs aren’t convinced that stocks will keep climbing. There may be other fees associated with trading. residents 18+ and subject to account approval. could avoid a recession despite the concerns that have weighed on investors for months.Īt the same time, however, some market watchers say headwinds are mounting, and experts are divided on whether the stock market’s rally will endure. The Fed raised rates continuously in 2022 to fight spiraling consumer prices and - because higher rates tend to weigh on the price of financial assets - the stock market, bond market and crypto market all suffered. Investors appear hopeful that moderating inflation could mean an end to the Federal Reserve’s interest rate hikes is on the horizon. The tech-heavy Nasdaq Composite, which saw losses of more than 30% in 2022, has gained more than 16% since the beginning of January. ![]() The stock market has had a stellar start to the year.Īs of Tuesday’s close, the S&P 500 index is has gained nearly 9% this year, while the Dow Jones Industrial Average is up 3%. ![]() Lexington Law’s credit repair consultants will work on your behalf to dispute mistakes on your report.
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