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Non-Tech : Kirk's Market Thoughts -- Ignore unavailable to you. Want to Upgrade?

To: #Breeze who wrote (15492)	3/7/2023 4:55:18 PM
From: Kirk ©	4 Recommendations Recommended By #Breeze da_spot Investor2 skier31 Read Replies (1) \| Respond to of 26788

A nice rounding bottom on the IMX much like it did after the last bear market and several major declines. Monthly Summary Investment exposure in TD Ameritrade client accounts increased last period. The IMX moved higher to 4.57, up 6.03%, during the February period. TD Ameritrade clients were net buyers of equities in February. Despite every S&P sector trading lower during the period, the sector breakdown showed buying interest in all of the S&P sectors. The buying interest was strongest in the Communication Services and Consumer Discretionary sectors, down 5.75% and down 2.9% respectively. The February IMX period contained both macroeconomic catalysts and the bulk of the latest quarterly earnings season. February started off with a strong rally in US equities after the Federal Reserve's Federal Open Market Committee (FOMC) meeting concluded with a 25-basis point increase in the Federal Funds Rate and commentary from Fed Chair Jerome Powell that was not as hawkish as feared. However, the Employment Situation report showed continued strong jobs growth and the unemployment rate edged lower to 3.4%, its lowest level since 1969. This reignited inflation concerns, leading the S&P 500 onto its downward trajectory that it maintained for the duration of the February period. The Consumer Price Index (CPI) and Producer Price Index (PPI) readings for February did not ease those concerns as both data points showed hotter than expected inflation rates. The Fed's preferred inflation gauge, the Personal Consumption Expenditures (PCE) Price Index component of the Personal Income and Outlays report also showed prices increasing at a faster than anticipated rate. Market participants were forced to wrestle with the prospects of higher rates for longer as the Fed continues its fight with inflation in efforts to restore price stability. The S&P 500 ended at 3,970.04, a decline of only 2.47% from the beginning of the February period but a fall of over 5% from the high close for February of 4179.76 on 2/2. This weakness was underscored by a higher CBOE Market Volatility Index (VIX) which ended the period at 21.67, a historically elevated level. The primary culprit for the weakness in equities was higher yields, as US Treasury markets faced steep selling, sending yields higher. The 10-year yield finished just under 4% its highest level since November. The US Dollar Index bounced sharply ending its recent slide to finish at 105.26, its highest level since the beginn... imx.tdameritrade.com