[Marchnad yr UD]S&P 500 rises sharply since start of month, yield rise breaks – around 133 yen – Bloomberg

December 29, 2022
No Comments

The US stock market rebounded on the 29th. Buying picked up as data on initial jobless claims eased concerns about an overheated labor market that could lead to a more aggressive monetary policy trajectory.

stock	closing price	Compared to the previous business day	Rate of change
S&P 500 Stock Index	3849.28	66.06	1.7%
Dow Jones Industrial Average	33220.80	345.09	1.0%
NASDAQ Composite Index	10478.09	264.80	2.6%

The S&P 500 stock price index rose for the first time in three business days amid thin year-end trading, marking a sharp gain since the start of the month. He has made up for all the losses of the last two days. The tech-heavy Nasdaq 100 Index rose 2.5%. Tesla jumped more than 8%, while major tech stocks such as Apple, Amazon.com and Microsoft were also bought.

US jobless claims rose last week from the previous week, but remained near historic lows. The number of continuous unemployment insurance beneficiaries rose to the highest level since February.

Initial jobless claims up slightly week-on-week – still near historic lows (1)

“I’m not that concerned about tech stocks,” Sylvia Jablonski, CEO and CIO of the Defiance ETF, told Bloomberg Television. “Many of these stocks will rebound next year. I think investors are a little too scared of technology right now.

“The market will enter 2023 at a critical turning point,” said Tom Essay, former Merrill Lynch trader and founder of The Sevens Report newsletter. A balanced labor market, high stocks and bonds, while the other is paved with persistent inflation, slowing growth, a persistently tight labor market, and low stocks and bonds. Data from the start of the year will provide important clues as to whether it will move forward.”

US Treasures

US Treasury bonds with longer maturities rose. Yields on 10-year bonds fell. Yields have been trending upwards for about a week, weighing on risk sentiment.

Trading flows and volumes “remained broadly muted,” Citigroup strategists said. The 30th will be shortened trading until 2:00 pm.

government bond	Latest price	YoY change (bp)	Rate of change
30 year US bond yield	3.90%	-6.75	-1.7%
US 10 Year Treasury Yield	3.82%	-6.44	-1.7%
2 Year US Treasury Yield	4.36%	1.03	0.2%
		US Eastern Time	16:41

foreign exchange

The dollar index fell in the foreign exchange market. After the release of US unemployment insurance data, the margin of decline widened. On the other hand, the yen rose. This is partly due to speculation that the Bank of Japan will further review its monetary easing measures. Against the dollar, it rose 1.2% at one point to 132.88 yen, the highest level in about a week.

exchange	Latest price	Compared to the previous business day	Rate of change
Bloomberg Dollar Index	1251.38	-6.37	-0.5%
dollar/yen	¥133.01	-¥1.46	-1.1%
euro/dollar	$1.0661	$0.49	0.5%
		US Eastern Time	16:41

raw

New York crude oil futures fell for the third day in a row. The increase in crude oil inventories in the United States and fears that the coronavirus outbreak in China could slow demand in the country led the sell-off.

Crude inventories rose by 718,000 barrels last week, according to data from the US Energy Information Administration (EIA).

“The high volatility won’t be over anytime soon,” said Craig Earlam, senior market analyst at Oanda. It sure is,” he said.

West Texas Intermediate (WTI) futures for February delivery on the New York Mercantile Exchange (NYMEX) closed at $78.40 a barrel, down 56 cents (0.7%) from the previous day. February London ICE North Sea Brent delivery closed 1.2% lower at $82.26. This was the last trading day for the February contract.