US30 Long

20 Jan 2023

The Dow lost roughly 100 points on Friday while the S&P 500 was trading virtually flat as mounting concerns that further interest rate hikes will drag the US economy into a recession continued to spook investors. The tech-heavy Nasdaq 100, however, outperformed by rising 1%, with Netflix up almost 7% after reporting stronger-than-expected subscriber numbers. So far, the fourth-quarter earnings season has painted a mixed picture of the health of the US economy. Some companies, like Netflix, reported strong growth, while big banks, including JPMorgan Chase, have set aside more money for expected defaults. Meantime, dismal economic data have boosted bets that the Federal Reserve will continue to slow the pace of policy rate increases. Money markets see the rate peaking at 4.85% by June, expectations that Fed officials have pushed back on recently. The Dow lost almost 4% for the week, while the S&P 500 and Nasdaq 100 are down around 2.5% and 1.5%, respectively.