MarketBites: Three Major Indexes Come Up Green
Portfolio Manager Commentary:
U.S. stocks rallied Wednesday as investors displayed optimism after better-than-expected economic data worked against the idea that a recession is inevitable. The Dow Jones, S&P 500, and Nasdaq Composite all finished in the green, with the Dow climbing over 400 points and the S&P 500 hitting its highest level since June.
The Nasdaq Composite rose the most at 2.59% as beaten-down tech stocks surged. Energy, on the other hand, underperformed. A government report showed sizeable declines in the consumption of jet and motor fuels. Oil futures dipped below $91 for the first time since Russia invaded Ukraine.
Companies that hired most aggressively during the pandemic, mainly in the finance and tech industries, are now heavily overstaffed and need to either freeze hiring or significantly cut back on their workforce. On the contrary, airlines and hospitality companies are desperately searching for new hires as they try to reverse the immense downsizing that occurred when Covid lockdowns went into effect.
Speaker Pelosi departed Taiwan after meetings with Taiwan’s president, senior lawmakers, and human rights activists. By the time she left, China’s navy had already maneuvered into position for large live-fire drills around the entire island of Taiwan, including locations off of two of Taiwan’s busiest ports. Some pundits believe this will the new norm as tensions continue to escalate.
Chart of the Day:
While startup funding has stalled for most large economies from the first half of 2021, Africa has seen its startup funding more than double so far this year.