Naive Trader

A morning rally attempt failed, turning into more declines for the major indexes. Chinese stocks outperformed after China cut interest rates.

Markets continued to fall as actions from a more hawkish Fed loom in the near future. Two rally attempts in the Nasdaq couldn’t hold on today and investors fled to defensive sectors.

Equity markets fell for another day as Treasury bond yields hit their highest level since the pandemic began.

Markets were mixed on Friday after Q4 earnings reports from JP Morgan and Citigroup disappointed investors. However, Energy and Tech stocks closed the day higher, helping the Nasdaq recover some of yesterday’s loss.

Tech stocks sold off this week’s gains in a reversal for the Nasdaq. Investors took profits as the Fed talked more about rate hikes in public comments.

A rally back into large-cap stocks drove the major indexes higher on Wednesday, while small-caps fell back. Consumer Price Index data for December was higher than forecast, but investors remained confident that the Fed would remain vigilant in controlling inflation in 2022.

Markets dipped in the morning, but the Nasdaq rallied in the afternoon to close the day with a small gain.

Payrolls and Unemployment data sent a blurry picture to investors on the pace of economic recovery. The uncertainty ended a volatile week with more decline while investors continue to evaluate pending rate hikes from the Fed later this year.

Stocks stabilized a bit on Thursday after selling-off the previous day due to the Fed’s hawkish meeting minutes release. Small-caps outperformed and investors bought dips in select growth stocks.

All indexes and sectors decline in late afternoon trading after the Fed released its December meetings minutes that showed a higher-than-expected concern over inflation combined with the tightening labor market.