Friends
The year of the great reset continues. As we have seen, every rally has eventually stalled out pretty much where technicians have expected in 2022, and narratives change on a dime whether driven by an utterance from a Fed official, an economic data point, or a reveal from corporate America. Today, another strong JOLTs number showed that the jobs market is still strong and thus wage inflation is likely to continue to be very sticky. Stocks are caught in the Fed’s crosshairs as they refocus on demand destruction, whether it’s derived from rising interest rates or simple jawboning.
As for today, it was another difficult session for the bulls. By the close the Dow Jones Industrial Average was down 308 points to finish the day at 31,790. The S&P 500 was down 44 points to close at 3,986. The Nasdaq Composite Index was down 134 points to close at 11,883. Gold was down $13 to trade at $ 1,736 per ounce, while oil was down $5.05 to trade at $91.96 per barrel WTI.
This week we get jobs data and then in a couple of weeks we get the next CPI report. All eyes will be on every economic data point, but despite near term data, the Fed has made it clear that they are willing to do whatever it takes to curb inflation. Unfortunately, that is likely to result in economic pain.
Have a nice evening everyone.
