Stansberry Research

Thursday Afternoon Market Recap

Stansberry NewsWire

Afternoon Market Recap:

U.S. equity markets finished Thursday lower.

Domestic equity markets ended lower as investors continue to focus on the tight labor market conditions and the potential ramifications of the Fed's rate policy for 2023. ADP payrolls surprised to the upside in December while jobless claims fell to a 14-week low and Challenger layoffs showed signs of slowing layoffs. Fed officials continue to reiterate their stance that a terminal target rate will be above 5%. In contrast, the tech and cloud services sectors continue to see substantial layoffs, including recent cuts from Salesforce (CRM) and Amazon (AMZN). Investors look ahead to tomorrow's unemployment rate for any signs that could provide cementing evidence of the direction of the labor market.

Within the S&P 500 Index, 10 of the 11 sectors finished lower...

European markets finished mixed. Eurozone markets finished mixed with investors refocusing on the Fed's rate-hike plans. The week's positive narrative of easing pricing pressures received a major boost as the eurozone producer price data for November showed further signs of decrease suggesting that it is past its peak. Meanwhile, the Bank of England said business leaders see inflation accelerating in the years ahead and wage growth strengthening. Subsequently, U.K. business leaders' confidence continues to fall with a moderate recession expected for most of 2023.

Asian markets finished higher. Markets gained on Thursday as Japan markets recovered slightly from yesterday's losses. China markets continue their strong start to the year as policy support from Beijing and demand expectations for 2023 continue to boost optimism from investors. To add, China Caixin services PMI unexpectedly rose with the business outlook rising to a 17-month high. Optimism also comes on the heels of the World Health Organization saying internal data showed no new coronavirus variants in China. And the Bank of Japan is likely to raise inflation projections in its next outlook report later this month.

(Narratives written as of local market close.)


VIX +2.04%

Bitcoin +0.13%

Ethereum +0.01%


WTI crude +1.29%

Brent crude +1.17%

Natural gas -10.07%

Copper +2.33%


Gold -1.10%

Silver -2.44%

Tomorrow, we are on the lookout for eurozone business and consumer confidence data, as well as job data stateside.

Have a great evening!

C. Scott Garliss and Kevin Sanford