Key points:
- S&P 500 loses Trump-pump gains
- Friday’s scorching-hot jobs report
- News, volatility, trading opportunities
Solid jobs figure dashed hopes of more interest rate cuts by the Federal Reserve. Turns out more people getting jobs was actually bad for stocks.
- 🙀 S&P 500 Wipes Out Election Day Rally
- Futures contracts tied to the S&P 500 were gyrating around the flatline Monday morning after a bruising Friday session saw nearly 100 points, or 1.5%, gush out of the index.
- With that selloff factored in, the broad-based Wall Street average is just about flat since Election Day — the event, which sparked sweeping enthusiasm for stocks in every corner and led to record highs. Is it time to change the narrative from Trump pump to Trump dump?
- 🙊 Election Day Gains’ Big Dwindle
- If this erased gain remains, it will be the worst slump from Election Day to Inauguration Day on January 20 since Barack Obama’s first term in 2009. But that’s a different ballgame, considering it was the aftermath of the financial crisis that shook the fabric of global markets.
- Quick catch-up: equities surged to all-time records on Trump’s win, which promised deregulation, tax cuts and tariffs on imports from just about everywhere.
- 🦁 Job Market Roars in December
- On Friday, risk assets tumbled when December’s nonfarm payrolls came in much higher than expected. Employers added 256,000 new workers, smashing consensus views of 156,000.
- Looking ahead, big news is on deck for the week, including wholesale inflation (PPI) on Tuesday, retail inflation (CPI) on Wednesday, and consumer spending (retail sales) on Thursday. Brace yourselves for volatility and fresh trading opportunities.
