Market Highlights: Stocks Surge, Nasdaq Gains Momentum, and Fed’s Independence Stands Strong
Stocks surged on Wednesday, with all three U.S. indexes firmly in the green, and the Dow up almost 270 points. The Cboe Volatility Index remained below 25, indicating a calm week, the longest stretch since 2021.
Investors are closely watching inflation data due Thursday, especially the consumer price index figures which have recently impacted both stocks and bonds. Of particular interest is supercore inflation.
Tesla shares rose over 3%, surpassing the S&P 500 after a challenging period. This uplift is particularly welcomed by Robinhood traders who heavily invested in the stock. Meanwhile, Bed Bath & Beyond’s volatile journey continued.
For more market insights, read today’s full daily market roundup here.
1. Nasdaq Gains Momentum
Despite potential upcoming data reports that could affect market sentiment, U.S. equities markets are performing well in the early days of 2023. The Nasdaq, in particular, has seen three consecutive winning sessions. Although the index struggled in 2022 due to rising interest rates, which deterred investors from high-risk assets, it’s now showing resilience. However, with rates expected to remain high, this upward trend may be short-lived. Stay updated with live markets updates here.
2. Wells Fargo Restructures Mortgage Business
Once the leading mortgage lender in the nation, Wells Fargo is scaling back its involvement in the housing market amidst tighter regulations and increased interest rates. This strategic move aligns it with competitors like JPMorgan Chase and Bank of America, which adjusted their mortgage market shares following the 2008 financial crisis. Acknowledging the need to rebuild public trust after past controversies, Wells Fargo’s consumer lending chief announced the decision to downsize the home-lending business.
3. Fed Chairman Stands Firm Amidst Pressure
Facing criticism from various quarters regarding its handling of inflation, the Federal Reserve maintains its independence. Chairman Jerome Powell emphasized the importance of this independence, enabling the Fed to take necessary measures without succumbing to short-term political pressures. As the Fed prepares for its next rate-setting meeting, scheduled for Jan. 31 and Feb. 1, Powell reaffirmed the institution’s commitment to navigating economic challenges with autonomy.
- Stock Market Today: Dow, S&P Live Updates for Jan. 11 Bloomberg
- Stock Market News Today: Dow Climbs Over 200 Points As Investors Await Inflation Data The Wall Street Journal
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