This is a new installment in an ongoing series where Marc Bautis and colleagues comment on hot topics in the financial industry. This week, Kayla Waller, Financial Planner, fills us in.
January 2023 Market Summary
Stocks started the year off strong with the NASDAQ leading the way for US equities. After a largely negative 2022 for the growth-heavy index, it rose 10.7% higher in January. The S&P 500 increased 6.3%, and the Dow Jones Industrial Average rose 2.9%.
Eight of the 11 S&P 500 sectors were higher in January. After an 11.4% decline in December, the Consumer Discretionary sector went from worst to first in January, logging a 15.1% gain. Communication Services was not far behind with a 14.8% increase.
At the bottom of the list were the less economically-sensitive sectors of Consumer Staples, Health Care, and Utilities, as investors largely went risk-on.
Inflation slowed for the sixth straight month to 6.45% YoY, and core inflation fell a quarter of a percentage point as well.
The gap between new and existing home sales widened — US New Single-Family Home Sales MoM grew for the third straight month, but Existing Home Sales contracted 1.5%, marking its 11th consecutive monthly fall. The median national existing home price also declined 1.5%.
In the world of cryptocurrency, Bitcoin and Ethereum each soared well over 30% last month, marking a turnaround from last year when both cryptocurrencies plummeted around 65%.
Yields on longer-term treasuries fell while those with short-term maturities rose. The 5-Year, 10-Year, and 20-Year rates all declined by 0.36%.
On the flip side, yields on the 1-Month, 3-Month, and 6-Month Treasury Bills increased in January. The 1-Month saw the largest increase across the yield curve, at 0.46%.
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