MARKET PERFORMANCE:
Portfolio Manager Commentary:
Monday’s close marked the fourth consecutive day of losses for all three averages as recession fears mounted and a year-end rally appears unlikely. The moves followed another down week for stocks after the Federal Reserve delivered a 50 basis point short-term interest rate hike and signaled higher-for-longer rates. Fears that the central bank will push the U.S. economy into a recession increased as policymakers upped their forecast for future hikes above previous expectations, saying they now expect to increase rates to 5.1%.
“As we near the end of December, investors are still waiting on that Santa Claus Rally, with stocks coming off back-to-back down weeks for the first time since September,” said Chris Larkin, managing director of trading at E*Trade from Morgan Stanley.
Investors will also be watching for a few earnings reports due this week. FedEx and Nike are both scheduled to report earnings results later today after market close. As recession fears mount, earnings results will become more of a focus.
Chart of the Day:
The South African rand jumped against the U.S. dollar after President Cyril Ramaphosa was reelected as leader of the ruling African National Congress. The rand had sat out a recent rally in emerging-market currencies, said Chris Turner, head of currency strategy at ING. The currency was weighed down by questions over Mr. Ramaphosa's ability to hold on to his position amid allegations he covered up the theft of foreign-exchange from one of his game farms. Mr. Ramaphosa has denied any wrongdoing.
Source: WSJ
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