• Easy News
  • Posts
  • This Week in Financial Markets: 12.10.23

This Week in Financial Markets: 12.10.23

The Top 5

This Week in Financial Markets: The Top 5

1. Solid Jobs Print:
*NONFARM PAYROLLS RISE +199K M/M; EST. +185K

Friday’s monthly jobs number came in above expectations with private payrolls increasing a healthy 150,000. With many investors afraid of “too strong” of prints due to the likely effect of causing yields to rise - the S&P 500 still rallied +0.43% on Friday, likely seeing this as a ‘goldilocks’ print. Not too cold, not too hot.

2. S&P 500 Bullish Seasonality

Equities continue to track the average its seasonality line (since 1990). Seasonality points at one more pullback in the near-term (look out for Fed on 12/13) before a Santa-rally to end the year.

3. India Stocks Hit New High

Equities in India have hit a new all-time high (priced in Rupees). The US Dollar has weakened in the past few weeks as the market has begun to expect rate cuts from the Fed - which has fueled emerging market equity strength. India’s stock market just surpassed a valuation mark of $4T. Keep in mind, AAPL is still near $3T.

4. Bitcoin New 52-Week High

Fed rate cuts have rapidly become expected by the market in 2024. Fixed income markets are now pricing nearly 4 rate cuts from the Fed next year. The combination of expected rate cuts increasing investor confidence and a (potential) coming ETF, has pushed bitcoin to its highest level since April 2022.

5. Looking Ahead: Keep an Eye on Job Openings

Despite the strong jobs number - JOLTS (job openings) continue to fall. This is from a very high level and is not a major warning sign just set. However, until job openings start to steady-out, they represent a small crack in the labor market that is slowly growing. Keep an eye out here!

Looking Ahead:

  • Fed on Wednesday

  • CPI on Tuesday

  • Treasury bond auctions Mon/Tues

  • Stock buyback blackout window until January 19th

First Post Test