- US stocks rose on Friday and finished off their best week since November.
- All three indexes gained despite warnings from major banks of tough times ahead.
- JPMorgan, Citigroup, and Bank of America have forecast a mild recession to hit the economy in 2023.
US stocks gained on Friday amid warnings from major banks of tough economic times ahead.
All three indexes fell Friday morning, but posted steady gains through the day to end in the green. In particular, S&P 500 rose to finish its best week since November, when investors bet inflation would decline into the new year.
Executives from JPMorgan, Citigroup, and Bank of America said they expect a mild recession to hit the economy this year. JPMorgan CEO Jamie Dimon pointed to several headwinds that could rattle the economy, such as the ongoing war in Ukraine, high interest rates, and inflation, which is still well-above the Federal Reserve’s 2% target.
Still, consumers have grown more optimistic, with the US Michigan consumer sentiment survey clocking in at a nine-month high of 64.6 in January, up from 59.7 in December.
The 10-year Treasury yield ticked higher by six basis points to 3.51%.
Here’s where US indexes stood at the 4:00 p.m. closing bell on Friday:
- S&P 500: 3,999.08, up 0.4%
- Dow Jones Industrial Average: 34,302.61, up 0.33% (112.64 points)
- Nasdaq Composite: 11,079.16, up 0.71%
Here’s what else is happening today:
- Tesla’s price cuts show that Elon Musk isn’t going to “play nice” and the EV-maker is going on offense to spur demand, Wedbush said.
- “Dr. Doom” Nouriel Roubini said the Fed will wimp out on its inflation fight—and gold could be the best protection for investors.
- Stocks will suffer this year as a recession hits, but it could be the time to load up on bonds, PIMCO said.
- More than half of the CPI components are in deflation mode, and that could mean good news for the market, according to Fundstrat.
- China’s trade with Russia just hit a record $190 billion in 2022, a sign the two nations are strengthening their trade ties amid western sanctions.
- The Chinese government is buying Alibaba and Tencent shares that give the Communist Party special rights over some business decisions, a report said.
In commodities, bonds, and crypto:
- West Texas Intermediate crude gained 1.8% to $79.87 per barrel. Brent crude, the international benchmark, rose 0.2% to $85.30.
- Gold tacked on 1.1% to trade at $1,919.57 per ounce.
- The 10-year Treasury yield ticked higher six basis points to 3.51%.
- Bitcoin gained 2.6% to $19,363.67.