US Stocks Fall as Economic Indicators Suggest a Possible Recession

US stocks fell on Thursday

Yesterday has been the third negative day for Wall Street.

All three major indexes have closed in a loss.

The S&P 500 closed at -0.76%, the Nasdaq ended the trading session at -0.96% and the Dow Jones closed at -0.76%.

The latest economic data and the possibility of a recession have driven the negative movement.

US initial jobless claim

Yesterday, have been released the data regarding the number of people who have requested unemployment benefits.

Economists had forecasted 214,000 claims but the actual number is 190,000 for the week ending 14 January.

The previous week’s data was 205,000.

Less than-expected jobless claims mean that the labour market is still strong despite the Federal Reserve’s restrictive monetary policy.

Netflix’s CEO to step down

Reed Hastings, Netflix co-CEO and co-founder is going to step down as the chief executive officer of the company.

He has been in that role for 25 years and his position will be now offered to his two longtime associates.

Hastings will serve as executive chairman.

On Thursday have been released Netflix’s earnings which are $0.12 versus the $0.58 expected

In premarket the shares rose 6%.

Fed’s official’s latest comment

Inflation in the US is slowing down, however, is still too high to stop the interest rate hikes.

Two members of the Federal Reserve have spoken yesterday and both agreed that in order to reduce the inflation at 2% there is a need to implement a sufficient restrictive monetary for some time.

Investors believe that the next interest rate hike will be of 25 basis points as shown in the chart below.

FedWatch Tool – FED rates probabilities



94.3% of investors are expecting the FED to increase the interest rates by 0.25% at the next meeting.

The remaining 5.7% are expecting a 0.50% rate increase.

The number of investors expecting a rate increase of 0.25% is increasing on daily basis.

No other options are considered at this time.

The next FED meeting is on 1 February 2023.

Portfolio Update

I am monitoring the short positions on stocks and ETFs and will act accordingly.

This will allow my portfolio to make a profit if the market drops.

The fundamentals remain bearish, so I am neutral and cautious at the moment, based on the current FED monetary policy.

However, I aim to profit regardless of the market direction.

If you are already copying my portfolio, please keep the copy open.

If you are thinking of copying me, now could be the right time, if you can invest for the long term (years).

Remember to copy the open trades to optimize the copy.

Remember to set the stop loss on the copy at the minimum level, so you don’t get stopped if there is a correction.

Thank you, everyone. Have a nice day!

Steps to follow to copy my portfolio automatically:

1. Create an eToro account here: https://federicamontella.com/go/etoro/

2. Verify your account and make a deposit of at least 200 USD (you can deposit in any currency, like GBP and EUR)

3. Go to my profile page: https://federicamontella.com/go/etoro-passionforprofit/

4. Start the copy (copy open trades and set the lowest stop loss possible, to allow some movement)

5. Enjoy, it’s all automatic. You will make passive income 24/7

Let me know if you have any questions.

 

Federica Montella

eToro Popular Investor

 

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Author: Federica Montella
eToro Popular Investor, food lover and blogger. Stock trader and Popular Investor at eToro. I am on a mission to find the best restaurants and food to eat.