© Reuters
Investing.com – The US markets fell, with many signs that they will continue to adopt aggressive hawkish policies, despite the improvement.
markets now
It is now losing 1.03% to fall to 10,844.51 points, while it fell by 0.69%, losing 229 points so far, and also fell by 0.74%.
At the same time, the American dollar continued to fall below the 102 levels, specifically at 101.940, down by 0.13%. At the same time, high yields rebounded, as yields on 10-year treasury bonds increased by 1.24% to 3.417%, and yields on 2-year treasury bonds increased by 1.34% to 4.1306%.
It rose by 0.80%, to trade at $1922.35 an ounce, while spot contracts rose by 0.87% to $1922.40 an ounce.
Important data and strong signals
All major averages are on track for a negative week. The Dow Jones fell 3.5%, while the Standard & Poor’s and Nasdaq both lost more than 2% on a weekly basis.
Stocks extended declines on Thursday after initial filings for unemployment insurance fell to their lowest level since late June last week, the Labor Department reported Thursday, in a sign to investors that the job market is resilient amid a slowing economy.
“Despite all the post-pandemic layoffs, the job market remains hot,” said Ed Moya, senior market analyst at Oanda. “The labor market needs a break to allow the Fed to comfortably keep rates on hold.”
Claims totaled 190,000 seasonally adjusted for the week ending January 14, a decrease of 15,000 from the prior period. Economists surveyed by Dow Jones were looking for 215,000.
Investors have also sifted through the latest data and Federal Reserve remarks for clues about how interest rates will rise.
Disappointing retail sales and a weaker-than-expected PPI reading sparked recession fears, sending stocks lower on Wednesday.
Elsewhere, investors are watching key quarterly reports to see if earnings stagnate. Netflix will report earnings after the bell.
Jamie Dimon:
Jamie Dimon, CEO of JPMorgan Chase, believes interest rates could rise higher than the Fed currently expects as inflation remains stubbornly high.
Dimon said Thursday on CNBC’s “Squawk Box” from the World Economic Forum in Davos, Switzerland.
Dimon said the recent decline in inflation comes from temporary factors such as the slowdown in China due to the Covid pandemic.
“We’ve benefited from a slowdown in China, and the benefits of a little bit of lower oil prices,” Dimon said. “I think oil and gas prices will probably go up in the next 10 years… China won’t be in deflation anymore.”
A series of aggressive interest rate hikes has raised recession fears in US central banks, and central bankers still feel they have room to raise interest rates as labor and consumer markets remain strong.
The head of JPMorgan (NYSE:) said that if the US suffers a moderate recession, interest rates will rise to 6%. He added that it is difficult for anyone to predict a recession.
“I know there will be recessions, ups and downs. I really don’t spend a lot of time worrying about it. I worry that bad public policy will hurt American growth,” Dimon said.
