Weekly Market Bullets

for the week ending 1/6/2023

• US Equity Markets began the year on a positive note, as lower-than-expected wage growth data turned a negative week into a positive one on renewed hopes that the Fed may let up on its rate hike campaign. The S&P 500 was up 1.5% for the week; the Nasdaq rose 1.0% to begin the year, while the Russell 2000 (small cap stocks) increased 1.8% for the week.

• Global Equity Markets posted similar gains last week on improved inflation data out of Europe and additional efforts in China to boost its economy. Developed Markets rose 1.5% for the week, while Emerging Markets rallied 2.8% to begin the year on particular strength in China. 

• Interest Rates dropped notably on lower-than-expected wage growth. While Payroll gains for December topped expectations at 223K and the Unemployment Rate for December dipped to 3.5% from 3.7% in November, investors focused on the 4.6% increase in year-over-year wage gains, well below expectations of 5.0%. As a result, the yield on the US 10-Year Treasury closed last week at 3.56% vs. 3.88% the prior week, with rates coming down across the yield curve.

• Natural gas prices fell over 16% last week as warm weather globally and elevated production in response to Russia's invasion of Ukraine have supplies in good shape. At $3.45/mmbtu, the price of US natural gas is now below levels seen prior to the Russian invasion and should bode well for future inflation data.

Market Data

for the week ending 1/6/2023