Broker Daily Summary 20221223

*US equities fall as strong economic data fuel rate hike fears*

*23 December 2022*
Nasdaq 100 Index 10956.14, (-2.49%)↓
S&P 500 Index 3822.6, (-1.44%)↓
Dow Jones Indus Avg Index 33027.49, (-1.05%)↓

US stocks closed lower Thursday, as a *micron-led slump* led the tech-heavy Nasdaq lower amidst fears that strong GDP data could provide *more cushion for the Fed to continue with its aggressive rate hike regime*. All 11 sectors ended in a sea of red, with *Consumer Discretionary* and *Info Tech* leading losses. Elsewhere, the *Dollar Index* rose as the safe-haven currency benefited from a *flight to safety* amidst growing recession fears. The *VIX (+2.07%)* rose to 22.14.

*Q3 GDP* data came in better than expected at 3.2%, compared to 2.9% in the previous quarter. This could encourage the Fed to lean more hawkish on monetary policy. *Weekly Initial Jobless Claims* rose to 216k from 214k, but remained below estimates of 222k, pointing to a still-tight labor market. *Personal Consumption Expenditure (PCE) Price Index* data, the Fed's preferred inflation gauge, will be released *later tonight at 21:30 Singapore time*. As we head into 2023, expect recession talks to replace inflation as the dominant market headline.

*Semiconductors* weighed on the broader market, as *Micron (-3.44%)* fell after missing quarterly estimates and forecasting a steeper-than-expected Q2 loss. Micron equipment supplier *Lam Research (-8.65%)* also tumbled. Airline stocks such as *Boeing (-3.95%)* and *American Airlines (-3.61%)* fell as winter storms led to the cancellation of hundreds of flights ahead of a busy Christmas weekend. *Tesla (-8.88%)* plunged after doubling its discount on key models amidst concerns over softening demand. *AMC Entertainment (-7.36%)* slumped after the world's largest cinema chain said it would raise $110 million through a preferred stock sale.