The major market Indices fell back in a turbulent week of trading on rumours that the Federal Reserve could accelerate its monthly asset purchases and fears that the development of the omicron strain of the coronavirus could stymie global economic growth and cause supply chain disruptions. Stocks with a large market capitalization outperformed smaller and mid-cap benchmarks.
While inflationary pressures are expected to ease over the next year, Fed Chair Jerome Powell acknowledged in testimony before Congress that they have become broad enough and have remained elevated for long enough that the central bank may consider speeding up the pace at which it tapers its monthly bond purchases. The market seems to read this development as perhaps pushing the Fed's timeframe for raising short-term interest rates forward. Powell also pointed to an increase in COVID-19 cases and the introduction of the omicron form as potential drivers for more supply chain disruptions, as well as potential obstacles to the economy's recovery and progressive rebalancing of the labour market.
Additionally, nonfarm payrolls climbed by 210,000, significantly less than the 546,000 jobs added in October and less than half of economists' expectations. However, in comparison to October, the unemployment rate improved by four tenths of a percentage point, decreasing from 4.6% to 4.2%.
Oil and Gold both closed the week down with -4.29% and -0.54% respectively. US T-Bonds returned 7.44%. The S&P also closed with -1.95%. One Signal Xpress beat its benchmark with 1.26% once again with.
On a year-to-date level, One Signal outperformed the benchmark. The S&P 500 returned 20.56%, compared to One Signal Xpert with 24.51% and one Signal Xpress with 26.33%.
We wish everyone a successful week!