![](https://i.imgur.com/CLvY2jA.png")
06-01-2022, 01:03 PM
*Morning Market Update (6 Jan 2022)*
STI 3,146.92 -15.59 -0.49%
Dow Jones 36,407.11 -392.54 -1.07%
Hang Seng 22,907.25 -382.59 -1.64%
Nikkei 29,948.71 -385.18 -1.31%
SSE 3,595.18 -37.15 -1.02%
*Market Overview*
Stocks finished sharply lower Wednesday after the release of minutes of the Federal Reserve’s last policy gathering in 2021 showed discussion around a potentially faster pace of shrinking the central bank’s massive balance sheet and raising rates.
Stocks tumbled into the close following the release of minutes from the latest Federal Open Market Committee meeting in December, which revealed a more hawkish tone by Fed officials grappling with taming what some have described as 1980s-like levels of inflation.
Minutes revealed robust talk among some Fed officials around the central bank potentially moving to raise rates quicker and cutting its current $8.8 trillion sized balance sheet faster than earlier anticipated to help tackle higher costs of living.
At the Dec. 14-15 meeting, Fed policy makers agreed to speed the wind-down of the central bank’s monthly asset purchases.
Meanwhile, the minutes of the Fed meeting hastened a wreck in technology-related sectors already gathering momentum on Wednesday.
Shares of Google parent Alphabet Inc. closed down 4.6%, off more than 7.6% from its Nov. 18 closing high of $2,996.77.
A rise in government bond yields also contributed to pressure on tech plays, as investors factored in the prospect of the higher borrowing costs if the Fed lifts interest rates as many as the three times as anticipated this year.
On the other hand, financials which benefit from a rising rate environment, still were headed solidly higher for the week.
The 10-year Treasury yield has surged nearly 20 basis points in the first three trading days of 2021.
Over the past two trading sessions, the S&P 500 Value Index has outperformed the S&P 500 Growth Index by 4.31 percentage points, marking the largest two-day outperformance since Nov. 10, 2020.
On the economic and policy fronts, a report on private payrolls showed that 807,000 jobs were created in December, according to the ADP National Employment Report, higher than forecast for a gain of 375,000, based on average estimates from economists.
Strategists use the ADP report to get an early read on the Labor Department’s report on private payrolls, which are scheduled to be released in about 48 hours.
The private-sector report recently hasn’t been an accurate predictor of the Friday jobs report.
However, the ADP report is watched because investors will be more attuned to the health of the jobs market during the omicron variant surge.
The labor market and the outlook for inflation are two factors that policy makers at the Fed will be observing closely as they set up for the new year.
STI 3,146.92 -15.59 -0.49%
Dow Jones 36,407.11 -392.54 -1.07%
Hang Seng 22,907.25 -382.59 -1.64%
Nikkei 29,948.71 -385.18 -1.31%
SSE 3,595.18 -37.15 -1.02%
*Market Overview*
Stocks finished sharply lower Wednesday after the release of minutes of the Federal Reserve’s last policy gathering in 2021 showed discussion around a potentially faster pace of shrinking the central bank’s massive balance sheet and raising rates.
Stocks tumbled into the close following the release of minutes from the latest Federal Open Market Committee meeting in December, which revealed a more hawkish tone by Fed officials grappling with taming what some have described as 1980s-like levels of inflation.
Minutes revealed robust talk among some Fed officials around the central bank potentially moving to raise rates quicker and cutting its current $8.8 trillion sized balance sheet faster than earlier anticipated to help tackle higher costs of living.
At the Dec. 14-15 meeting, Fed policy makers agreed to speed the wind-down of the central bank’s monthly asset purchases.
Meanwhile, the minutes of the Fed meeting hastened a wreck in technology-related sectors already gathering momentum on Wednesday.
Shares of Google parent Alphabet Inc. closed down 4.6%, off more than 7.6% from its Nov. 18 closing high of $2,996.77.
A rise in government bond yields also contributed to pressure on tech plays, as investors factored in the prospect of the higher borrowing costs if the Fed lifts interest rates as many as the three times as anticipated this year.
On the other hand, financials which benefit from a rising rate environment, still were headed solidly higher for the week.
The 10-year Treasury yield has surged nearly 20 basis points in the first three trading days of 2021.
Over the past two trading sessions, the S&P 500 Value Index has outperformed the S&P 500 Growth Index by 4.31 percentage points, marking the largest two-day outperformance since Nov. 10, 2020.
On the economic and policy fronts, a report on private payrolls showed that 807,000 jobs were created in December, according to the ADP National Employment Report, higher than forecast for a gain of 375,000, based on average estimates from economists.
Strategists use the ADP report to get an early read on the Labor Department’s report on private payrolls, which are scheduled to be released in about 48 hours.
The private-sector report recently hasn’t been an accurate predictor of the Friday jobs report.
However, the ADP report is watched because investors will be more attuned to the health of the jobs market during the omicron variant surge.
The labor market and the outlook for inflation are two factors that policy makers at the Fed will be observing closely as they set up for the new year.
I, being poor, have only my dreams; I have spread my dreams under your feet; Tread softly because you tread on my dreams.
![[Image: rT3qmuy.jpg]](https://i.imgur.com/rT3qmuy.jpg)
