Asian shares extend losses after Wall Street decline

Author of the article: The Associated Press Damian J. Troise And Alex Veiga Published Dec 29, 2022  •  Last updated 6 minutes ago  •  2 minute read Join the conversation BANGKOK — Stocks rallied on Wall Street in afternoon trading Thursday as investors reviewed the latest government update showing that the labor market remains strong. The…
Asian shares extend losses after Wall Street decline

Author of the article:

The Associated Press

Damian J. Troise And Alex Veiga

Published Dec 29, 2022  •  Last updated 6 minutes ago  •  2 minute read

Join the conversation

BANGKOK — Stocks rallied on Wall Street in afternoon trading Thursday as investors reviewed the latest government update showing that the labor market remains strong.

The S&P 500 rose 1.8% as of 1:46 p.m. Eastern. More than 95% of stocks within the benchmark index gained ground. It’s the latest oscillation in what has been a volatile, holiday-shortened week for stocks.

Financial Post Top Stories

Sign up to receive the daily top stories from the Financial Post, a division of Postmedia Network Inc.

By clicking on the sign up button you consent to receive the above newsletter from Postmedia Network Inc. You may unsubscribe any time by clicking on the unsubscribe link at the bottom of our emails or any newsletter. Postmedia Network Inc. | 365 Bloor Street East, Toronto, Ontario, M4W 3L4 | 416-383-2300

The Dow Jones Industrial Average rose 376 points, or 1.1%, to 33,250 and the Nasdaq rose 2.6%.

Tesla jumped 5.6% as it continued to recover from steep losses Tuesday following reports it temporarily suspended production at a factory in Shanghai. The stock is still down 66% for the year.

Investors have been hoping for a “Santa Claus” rally. That’s Wall Street’s term for when stocks rise in the last five trading days of December and first two of January. Even a late rally likely wouldn’t change the broader market’s trajectory for the month.

Every major index is headed for a loss in December that will cap off a dismal year. While companies in the S&P 500 raked in record profits this year, investors in the benchmark index will see a roughly 20% loss in 2022, which would mark its worst year since 2008.

Treasury yields were mixed. The yield on the 10-year Treasury fell to 3.83% from 3.89% late Wednesday.

Markets in Europe were higher and markets in Asia slipped.

Investors have been focused on the Federal Reserve’s continuing fight against stubbornly hot inflation. The central bank has been raising interest rates in an effort to stifle borrowing and spending and cool inflation, but the strategy risks going too far and sending the economy into a recession. That has put an even greater focus on a wide range of data for Wall Street as it tries to determine whether inflation is cooling and how various areas of the economy are faring.

The latest update from the U.S. shows that the number of people seeking unemployment benefits rose only slightly last week. The labor market has been one of the stronger areas of the economy. That’s normally good news and it has helped create a bulwark against a recession as other areas of the economy slow. It has also made the Fed’s fight against inflation more difficult and means the central bank will have to likely remain aggressive, raising the risk that its policy could bring on a recession.

The Fed has already raised its key interest rate seven times this year and is expected to continue raising rates in 2023. The key lending rate, the federal funds rate, stands at a range of 4.25% to 4.5%, and Fed policymakers forecast that the rate will reach a range of 5% to 5.25% by the end of 2023. Their forecast doesn’t call for a rate cut before 2024.

Read More

Total
0
Shares
Leave a Reply

Your email address will not be published.

Related Posts
Bukele steps up El Salvador’s bet on sliding bitcoin; buys another 150 coins
Read More

Bukele steps up El Salvador’s bet on sliding bitcoin; buys another 150 coins

Author of the article: SAN SALVADOR — El Salvador President Nayib Bukele said the Central American country had acquired an additional 150 bitcoins after the digital currency’s value slumped again, enlarging his bet on the cryptocurrency despite criticism. Bitcoin, the world’s biggest and best-known cryptocurrency, is down about 30% from the year’s high of $69,000…
Hong Kong SPAC listings to be allowed from  Jan. 1
Read More

Hong Kong SPAC listings to be allowed from Jan. 1

This advertisement has not loaded yet, but your article continues below. Author of the article: Article content HONG KONG — Special Purpose Acquisition Companies, or SPACs, will be allowed to list in Hong Kong from Jan. 1, 2022, the local stock exchange operator said in a statement on Friday. The statement from Hong Kong Exchanges…