[Platinum Insights] 1.4.23 Market updates

1.4.23

Stock futures price action tied to the three major indices were up roughly 0.5% on Wednesday, putting Wall Street on track to rebound as investors await a slew of data releases in the US calendar and the FOMC minutes for clues on the central bank’s rate-hike path. Signs that global inflationary pressures may be peaking encouraged central banks to slow the pace of interest-rate hikes later last year while offering some relief to investors. 

However, as 2023 rolls out, the narrative starts changing from inflation and tightening to recession and sharp downward earnings revisions. Minutes of the latest Fed policy meeting and JOLT job openings data later today will offer critical insight into the next move in interest rates and the health of the world’s largest economy.  

Oil fell sharply after slumping in the previous session, weighed down by concerns about weak demand due to the state of the global economy and China’s rising COVID cases. U.S. Treasury yields slipped as investors awaited the release of the Federal Reserve’s December meeting minutes, which could provide hints about the central bank’s monetary policy plans.  

The markets have been trading sideways for the past several sessions waiting for something to break them out one way or the other. Maybe the FOMC meeting minutes and jobs / employment data due out this week will provide that spark.  This information is being provided for educational purposes and is not a recommendation to buy or sell a security.