The US stock market went up in most of the trading sessions of the past week, when there were comments about the U.S. Federal Reserve (Fed) will offer lower rate hikes this year with inflationary begins to “cool down.”
Besides, Wall Street also had a busy week with earnings reports from major companies including Microsoft, Intel and Boeing.
Investors will especially look at businesses’ 2023 earnings prospects to guide their investments, said Patrick O’Hare, a financial analyst at Briefing.com.
After opening the new week with a gain on January 23, US stocks moved in the opposite direction in the next two trading sessions, before recovering in the last two sessions of the week.
[Kỳ vọng thị trường chứng khoán “chuyển mình” tích cực trong năm 2023]
The stock market got off to a good start this year as slowing inflation paved the way for central banks to moderate the pace of rate hikes.
Now, however, the focus is shifting to the economic effects of last year’s consecutive rate hikes.
Concerns about growth prospects and the impact of interest rate Higher corporate profits have dimmed expectations for the engine of China’s economic growth, as the country began to reopen after nearly three years of strict epidemic prevention and control measures.
According to Craig Erlam, senior market analyst at brokerage OANDA, the stock market has had “red” sessions as investors prepare for the release of less-than-positive business reports. technology “big man”.
A flurry of layoffs, unfulfilled goals, and bleak forecasts are becoming headwinds for most tech companies.
Technology group Microsoft announced that the outlook for Azure enterprise cloud computing platform business is not as expected, after just announced plans to lay off 10,000 employees.
Meanwhile, aviation giant Boeing posted a loss in its fourth-quarter report for 2022, with revenue below analyst estimates.
According to Refinitiv, the fourth quarter of 2022 earnings season is in full swing, with 72 companies in the S&P 500 index reporting profits.
Of these, 65% achieved profits that exceeded forecasts. The earnings of companies in the S&P 500 index are down 2.9% year-over-year, analysts say.
According to Ingalls & Snyder portfolio expert Tim Ghriskey, the Fed will evaluate earnings reports and the health of the economy, as interest rates rise, among other things. The bank may be about to achieve its target of controlling inflation and stopping raising interest rates.
At the end of the weekend session on January 27, the Nasdaq Composite index increased 0.95% to 11,621.71 points, while the S&P 500 index increased 0.25% to 4,070.56 points. The Dow Jones Industrial Average advanced 28.67 points, or 0.08%, to 33,978.08 points.
All three major indexes posted gains over the past week and are headed for gains for the month.
The Nasdaq Composite jumped 4.32% this week, marking its fourth consecutive weekly gain and on track to record its best month since July 2022. The S&P 500 and Dow Jones are up 2.47% and 1.81%, respectively, this week.
Earnings season continues, with a strong outlook propelling American Express shares up 10.5% despite revenue and profit falling short of expectations.
Some chip company stocks also rose even as Intel shares tumbled more than 6% on a dismal earnings report that missed expectations.
Tesla stock surged 11% on Jan. 27, and rallied more than 33% in the week after it reported record-high revenue. This is the best week for the electric car company’s stock since May 2013.
Year-to-date, the market has weathered its 2022 sell-off. The Dow Jones is up 2.5%, and the Nasdaq Composite is up 6%. Nasdaq Composite rose 11%.
Ryan Detrick, Head of Market Strategies at Carson Group, said: “We’re set for a positive January after inflation eased and the economy slowed. However, we are not completely out of the woods yet, with the Fed meeting next week, which could throw cold water on this climb.”
On the same day, the US Department of Commerce said that the personal consumption expenditures (PCE) price index for December 2022, excluding food and energy prices, increased by 4.4% year-on-year, coinciding with the same period last year. matched the forecast from Dow Jones.
Meanwhile, consumer spending in this country fell for the second consecutive month in December 2022, signaling a bleak outlook for the economy in the near future.
US economic growth in the fourth quarter of 2022 was 2.9%, down 0.3 percentage points compared to the growth rate of the third quarter of 2022 of 3.2%.
However, the economic data of the fourth quarter is said to still exceed the expectations that experts had given earlier.
Some economic analysis firms have recently made predictions that the US economic growth in the fourth quarter of 2022 is expected to be at 2.6%.
Minh Trang (VNA/Vietnam+)