Market Analytics and Considerations
Key Notes
After the Nasdaq nearly struck a 30-month bottom the previous day, U.S. stocks recovered in early trading on Thursday as the market appeared poised to recover a portion of its recent struggles on the 2nd trading day of the calendar year.
After U.S. weekly unemployment claims data revealed that the number of employees getting welfare has increased to its top level since February, a hint that the Federal Reserve’s interest-rate raises may be hurting both inflation and economic growth the leading indices built on premarket gains.
How do stocks fare?
The S&P 500 sank 46 points, and 1.2%, reaching 3783 on Wednesday, while the Nasdaq Composite fell 140 points, or 1.35%, at 10,213, its worst closing mark for the year. The Dow Jones Industrial Average plunged 366 points, and 1.1%, reaching 32876.
The S&P 500 is gained more than 6percentage points from the trough it reached in 2022 in mid-October, but it is still off 20.1% this year.
What fuels markets
The equity market was in desperate need of a little holiday happiness going into the last session of 2022 because the anticipated “Santa Claus bounce” has so far not materialized.
The number of Americans receiving more than one week’s worth of jobless benefits increased by 41,000 this past week to reach 1.71 million, the highest level in 10 months, according to data, which led to a rise in stocks after the market opened.
U.S. jobless claims increased last week, as can be seen.
According to FactSet statistics, if the major indices end the week lower, the S&P 500 would have suffered losses for the fourth consecutive week, the longest stretch of weekly falls since May.
A weekly loss would be the Dow’s third consecutive week of declines after finishing higher previous week as it maintained its superior performance.
