NYSE MAC Desk - December 9th Weekly Recap

DOW 33,476 (-305), S&P 500 3,934 (-29), Russell 2000 1,797 (-22), NYSE FANG+ 4,848 (-8), ICE Brent Crude $76.82/barrel (+$0.67), Gold $1,809/oz (+$8), Bitcoin ~17.1k (-100)

US equity markets pulled back throughout the week essentially reversing the one-day post-Powell rally from last week. This week has really been a continuation of the consolidation that has been going on since the better-than-expected CPI data released a month ago. Following that release the S&P 500 closed at 3,956 and has since traded in a 200pt range between 3,900 - 4,100, just below its declining 200d moving average which now sits ~4,040. After holding up for most of the day we did accelerate to the downside into the close with the S&P 500 ending the week down 3.4%, the Dow Jones Industrial Average was off 2.8%, while the Russell 2k underperformed ending lower by 5%.

There has been a lot of push and pull this week with economic data showing the economy still has some underlying resilience, cautious commentary coming from management teams about what's over the horizon, and some mixed earnings. One of the positives coming from the latter is that we have heard multiple companies pointing to improvement within the supply chain which should help on the inflation front. In addition, this coupled with the recent US dollar weakness and falling logistics costs could help to offset some of the potential demand weakness.

China policy optimism continues to be another big story with the government taking additional steps to ease Covid policies. There is also speculation that the government could announce additional measures to support the property market at the Central Economic Work Conference which begins next week. For the week the Hong Kong Hang Seng index was up 6.6% while the China Shanghai Composite was up 1.6%.

Read the rest of the Weekly Recap here