(315) 624-7300 / Email Us
Ascent Wealth Partners
  • Home
  • Investing
  • Planning
  • 401(k)
  • Knowledge
  • Team
    • Brad Kowalczyk
    • Mark Moshier
    • Scott McCartney
    • Doug Bissonette
    • Neil Edmonds
    • Joe Summa
    • Nancy Kowalczyk
    • Chris Lai
    • Tim Welchons
    • Steve Basile
    • Connie Benson
  • My Account
    • Schwab Login
  • Contact Us
  • Form-CRS
Ascent Wealth Partners
  • Home
  • Investing
  • Planning
  • 401(k)
  • Knowledge
  • Team
    • Brad Kowalczyk
    • Mark Moshier
    • Scott McCartney
    • Doug Bissonette
    • Neil Edmonds
    • Joe Summa
    • Nancy Kowalczyk
    • Chris Lai
    • Tim Welchons
    • Steve Basile
    • Connie Benson
  • My Account
    • Schwab Login
  • Contact Us
  • Form-CRS
Home Chris Lai Market Currents – 2/7/23
Back Home

Market Currents – 2/7/23

byAscentadmin inChris Lai posted onFebruary 7, 2023
0
0
Market Currents – 2/7/23
  • January Reversal.  Stocks markets opened 2023 on a strong note, with robust gains across global equities.  Signs that inflation is easing in several major regions helped propel the advance, raising hopes that central banks may be close to the end of their rate hiking cycle.  China’s reopening after dropping their zero-Covid policy further supported bullish sentiment.  The fixed income market also rallied, benefiting from a drop in yields across intermediate and long-term maturities.

 

  • Inflation Update.  Recent data show inflation continues to ease across many metrics, suggesting that inflation may have peaked in the summer of 2022.  Headline consumer price index (CPI) inflation topped out at 9.1% in June, and has since declined to 6.5% in the latest read.  Goods inflation, in particular, saw declines, helped by ongoing improvements in the supply chain pressures as well as lower gasoline and commodities prices.

 

  • Service Inflation Remains Sticky.  While significant progress has been made in goods inflation, they make up a smaller component of overall inflation.  Fed officials and investors have turned their focus on service inflation, which has remained elevated.   Service inflation is made up mainly of two components – rents and wages.  Rents are calculated with a lag, and real time indicators point to much slower growth in 2023.  However, wage growth in a tight labor market arguably remains the largest risk to containing inflation.  Fed officials have highlighted wages as a key concern, and will be a primary factor when considering further adjustments to monetary policy.

 

  • Federal Reserve.  The Federal Reserve nudged up short-term interest rates by a quarter-percentage point in their February meeting.  The decision represented a slower pace of tightening following six larger, consecutive increases to combat inflation (the central bank raised rates by half point in December, and by 0.75 point in November).  The recent disinflationary trend was acknowledged, although Fed Chair Powell was careful not to feed into speculations with regards to a rate pause.

 

  • Economic Resiliency.  Despite the Fed’s commitment to putting a brake on the economy, the resilience of the job market and still robust consumer strength remain notable.  Initial estimates of gross domestic product showed the US economy grew by 2.9% in the fourth quarter, and the most recent unemployment jobs report came in far above expectations with an impressive 517k jobs added in January.  The reports lent some support to the view that the economy may not tip into recession, but instead undergo a sought-after “soft landing.”

 

  • Market Outlook.  After a challenging 2022, all investors welcome the positive start to the new year, and history is our ally.  It is uncommon for the stock market to decline in back to back years. Likewise, it is even less common for bonds to post consecutive negative years. As headline inflation peaks, investors are now turning to the outlook for economic growth, and to the path of Fed rate policy, to set their course.  We continue to monitor market developments, and will act accordingly, on clients’ behalf.
Share:

Previous

Market Currents - 1/12/23

Next

What Is Your Cash Doing For You?

Related Posts

Market Currents – 4/9/19
April 9, 2019
Market Currents – 4/9/19
No Comments
Market Currents 2/8/19
February 8, 2019
Market Currents 2/8/19
No Comments
Market Currents- 07/07/2017
July 7, 2017
Market Currents- 07/07/2017
No Comments

Archives

  • March 2023
  • February 2023
  • January 2023
  • November 2022
  • October 2022
  • September 2022
  • August 2022
  • June 2022
  • May 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • April 2021
  • March 2021
  • January 2021
  • November 2020
  • October 2020
  • September 2020
  • August 2020
  • July 2020
  • June 2020
  • May 2020
  • April 2020
  • March 2020
  • February 2020
  • January 2020
  • December 2019
  • November 2019
  • October 2019
  • September 2019
  • August 2019
  • July 2019
  • June 2019
  • May 2019
  • April 2019
  • February 2019
  • January 2019
  • December 2018
  • November 2018
  • October 2018
  • July 2018
  • June 2018
  • May 2018
  • April 2018
  • March 2018
  • February 2018
  • January 2018
  • December 2017
  • October 2017
  • September 2017
  • July 2017
  • May 2017
  • March 2017
  • February 2017
  • January 2017
  • December 2016
  • November 2016
  • October 2016
  • August 2016
  • July 2016
  • June 2016
  • April 2016
  • February 2016
  • January 2016
  • November 2015
  • September 2015
  • July 2015
  • January 2015
  • November 2014
  • September 2014
  • May 2014
  • October 2013
  • June 2013
  • November 2012
  • May 2012
  • March 2012

Recent Posts

  • What Is Your Cash Doing For You?
  • Market Currents – 2/7/23
  • Market Currents – 1/12/23

Contact Us

  • Address
    NEW HARTFORD: 89 Genesee Street | New Hartford, NY 13413 | 315.624.7300

    ELMIRA: 1225 W. Water Street, Suite 1 | Elmira, NY 14905 | 607.734.2002

    SARATOGA: 16 Lake Avenue | Saratoga Springs, NY 12866 | 518.306.4220
  • Home
  • Investing
  • Planning
  • 401(k)
  • Team
  • Contact Us
  • Terms of use

Recent Posts

  • What Is Your Cash Doing For You? March 7, 2023
  • Market Currents – 2/7/23 February 7, 2023
  • Market Currents – 1/12/23 January 12, 2023
  • Strategizing For 2023 January 6, 2023

Login To Your Schwab Account

Copyright © 2023 Ascent Wealth Partners. All Rights Reserved.