Market Drama

Featuring Zoe CEO & Founder, Andres Garcia-Amaya, CFA

January 10, 2023 

Watch Time: 2 minutes

Welcome to this week’s Market Drama – the first one of the year! 

  • Last week, U.S. stocks rallied 1.5% due to the better-than-expected December jobs number. 
  • Job growth didn’t decelerate significantly, but wage growth did.
    • The unemployment rate fell to 3.5%, which is the lowest rate for this cycle.
    • Wage growth rose by 0.3% in December, which gives an annualized growth rate of 4.8%.
  • The Federal Reserve will keep interest rates high until inflation comes down. Since wage growth is a big driver of inflation, if wage growth decelerates, the market will rally.

What to look forward to this week? 

  • On Thursday, we get the core CPI for December. The expectation is for 0.3% month-over-month core CPI and headline CPI (which includes energy and food) of 6.5% year-over-year. 
  • If you get lower-than-expected CPI, combined with lower-than-expected wage growth, we could continue to see signs that the market likes what it sees. 

Stay tuned for next week.

– Andres

Disclosure: This material provided by Zoe Financial is for informational purposes only.  It is not intended to serve as a substitute for personalized investment advice or as a recommendation or solicitation of any particular security, strategy or investment product. Nothing in these materials is intended to serve as personalized tax and/or investment advice since the availability and effectiveness of any strategy is dependent upon your individual facts and circumstances. Zoe Financial is not an accounting firm- clients and prospective clients should consult with their tax professional regarding their specific tax situation. Opinions expressed by Zoe Financial are based on economic or market conditions at the time this material was written.  Economies and markets fluctuate.  Actual economic or market events may turn out differently than anticipated.  Facts presented have been obtained from sources believed to be reliable.  Zoe Financial, however, cannot guarantee the accuracy or completeness of such information, and certain information presented here may have been condensed or summarized from its original source. 

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