US stocks sold off sharply and Treasury yield jumped after Fed Chair Jerome Powell said the peak rate may need to go higher.
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2023-03-08 | Sign Up | View Online
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Market Snapshot 📷
Highlights: US stocks sold off sharply and Treasury yield jumped after Fed Chair Jerome Powell said the peak rate may need to go higher. The Dow entered negative territory for 2023, while the S&P 500 and Nasdaq are still up about 3.8% and 10.2%, respectively, for the year. The 2-year Treasury yield jumped above 5%, its highest level since 2007.
Markets & Economy
Fed Chair Powell says interest rates are ‘likely to be higher’ than previously anticipated (4 min read)

Fed Chairman Jerome Powell warned that interest rates are likely to be higher than expected as the latest data showed inflation has reversed its deceleration. The switch to a smaller 0.25% increase could be short-lived if inflation continues to run hot. Powell noted that the Fed has more work to do to fight inflation and that the road ahead could be bumpy. Markets were optimistic that the central bank could tame inflation without running the economy into a ditch, but stocks fell sharply while Treasury yields jumped after Powell’s remarks were released.
What China's underwhelming economic growth target means for the world (2 min read)

China's target of "around 5%" GDP growth for 2023 underwhelmed investors and analysts, who expected larger stimulus plans from the government to boost growth. China's economy grew just 3% in 2022, its slowest growth since 1976, due to the impact of strict COVID-19 policies. The new growth target suggests that the government may not use traditional tools like infrastructure spending to boost the economy. Some analysts say that China's non-boom growth will not help in preventing a potential global recession this year.
Business & Stocks
Meta plans to cut thousands of jobs as soon as this week (1 min read)

Meta is planning a fresh round of layoffs and will cut thousands of jobs as soon as this week, according to a recent report from Bloomberg News. The company just had its first major layoffs in history last November, where it slashed 11,000 workers. Meta has been working hard on “flattening” its organization by cutting teams that it deems nonessential. However, it was reported that the latest round of job cuts were driven by financial targets rather than downsizing efforts.
Rivian shares fall as EV maker looks to raise $1.3 billion amid growing demand concerns (2 min read)

Rivian plans to raise $1.3 billion through the sale of convertible notes to help fund the development and launch of its upcoming vehicles in 2026. The news came as a growing list of EV startups are scrambling to reserve cash as demand falters. Many EV startups, including Rivian, are producing less vehicles in 2023 as orders for their vehicles were lower than expected. Rivian is not currently in an urgent need for cash, but the company is trying to reserve it until sales start to pick up. Shares of Rivian fell more than 12% after the news.
Funds & ETFs
Best Pharma ETFs by Performance (5 min read)

Some of the top performing pharmaceutical ETFs have greatly outperformed the S&P 500 in 2022. Although pharma ETFs come with regulatory and concentration risks, it also offers potential for long-term growth. This article provides details on the best pharma ETFs measured by one-year performance, which includes First Trust Nasdaq Pharmaceuticals ETF (FTXH), Invesco Dynamic Pharmaceuticals ETF (PJP), VanEck Pharmaceutical ETF (PPH), iShares U.S. Pharmaceuticals ETF (IHE), and SPDR S&P Pharmaceuticals ETF (XPH).
Cash Cows ETF Is a Rare Breakout Star (6 min read)

Every few years, an ETF takes the spotlight that no one has heard of. The Pacer US Cash Cows 100 ETF (COWZ) is a recent example, with AUMs jumping from $250 million to more than $13 billion in less than a year. It invests in 100 stocks from the Russell 1000 with the highest free cash flow yields, a strategy very well positioned in 2022 as market interest had a major shift from growth to value stocks. Historically, some ETFs managed to sustain momentum after the breakout. It will be interesting to see if COWZ will be one of them in the coming years.
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