"Slow Start to 2024 Continues..."

Yesterday's Session

- The $DJIA(.DJI)$ inched up by 10 points (0.03%), while the $S&P 500(.SPX)$ and $NASDAQ(.IXIC)$ slid by 0.3% and 0.6%, respectively.

- Both the S&P 500 and Nasdaq have recorded multiple days of decline, with the former down for four consecutive sessions and the latter falling for five straight days.

Index

Key Events

Investors await jobs report, hoping it can reverse the slow start to 2024. The labor market has displayed unexpected resilience.

The Bureau of Labor Statistics is expected to report an addition of 160,000 jobs in December. Some forecasts, such as Morgan Stanley's and EY's, predict higher figures, with Bloomberg Economics' nowcast reaching an eye-watering 242,800 monthly increase.

Economists anticipate a slight uptick in the U.S. unemployment rate to 3.8% in December, with hourly earnings expected to show continued moderation at 3.9% year-over-year.

Note, the St. Louis Fed announces Alberto Musalem as the successor to Jim Bullard as president of the regional Federal Reserve bank in April.

Market Scenario

US equities retreated on Thursday amid concerns about the timing of Federal Reserve rate cuts. The S&P 500 lagged behind the Russell 2000, and MSCI Emerging Markets lost 0.33% while MSCI EAFE added 0.23%.

Energy and consumer discretionary sectors underperformed, while health care and financials outperformed. The Nasdaq lost 0.56%, with technology stocks mostly falling.

1 Day Perf

Investors are cautiously navigating the potential timing of Federal Reserve rate cuts, with large caps and small caps showing mixed performance.

The VIX edged up slightly, and Treasury yields increased.

VIX

Outlook

• The slow start to 2024 raises concerns, and investors are closely monitoring economic indicators and Fed signals.

• Today's job report could influence market sentiment, and unexpected figures might contribute to ongoing market volatility.

• The State Street Risk Appetite Indicator shows caution among "Big Money" investors, and global equity market rallies are being scrutinized.

• Inflation concerns persist globally, as seen in the acceleration of German inflation in December, challenging hopes of ECB rate cuts.

*Disclaimer: The market outlook is subject to change based on evolving economic conditions and unforeseen events.*

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