Weekend Update 12/4/2022

Weekend Update recaps market highlights and major news from Ursa’s portfolio. Not on Ursa yet? Download Ursa from the App Store!

Markets surge on Powell’s Dec hike deceleration signal

🇨🇳  China unrest. Markets opened week lower on rare public protests in China last weekend following deadly fire in Xinjiang capital Urumqi and ongoing strict #COVID19 restrictions. However, follow-up protests quickly squashed by the Chinese government.

🕊  Dovish Fed? Fed Chair Powell signaled smaller rate hike in Dec with “path to a soft or softish” #RecessionWatch landing. Markets surged with S&P 500 up +3% and large cap Dow Jones technically exiting bear market. However, Powell qualified dovish remarks noting Fed still has “long way to go” to combat #InflationFears.

🔥  Labor market stays hot. US added 263K jobs in Nov with low unemployment at 3.7%. Meanwhile, hourly wages grew +5% Y/Y. Strong job numbers continue and likely still too strong for quick Fed pivot. While smaller 50 bps rate hike expected in Dec, #RisingYields likely sticks around awhile.

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The statements, opinions and analyses presented here are provided as general information. This article is the opinion of the author. Anything within this article should NOT be considered an investment recommendation or advice. See Ursa’s full disclosures here.