Market Recap – January 5th
On Thursday, U.S. stocks declined as the dollar’s value increased and bond yields rose due to positive employment data, which suggested that the Federal Reserve would continue to take a strict approach to managing inflation. The S&P 500 fell by 1.1%, while the Dow Jones Industrial Average dropped 1.2% or 400 points. The Nasdaq Composite also decreased by 1.1%. These declines came despite the previous day’s increases in U.S. indexes, following the release of Federal Reserve meeting minutes in which officials emphasized their determination to control inflation.
Looking at specific investments, we’re watching American Express and CrowdStrike. American Express’ stock fell by more than 2% after being downgraded by Stephens from “equal weight” to “underweight.” Stephens expressed concern about the company’s financial cushion in the event of a recession and lowered its price target for the stock to $134 per share from $146. CrowdStrike’s stock decreased by more than 8% to reach a new 52-week low after Jefferies downgraded the company’s rating from “buy” to “hold.” Jefferies noted that 2023 is expected to be a challenging year for companies experiencing growth.
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I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.
