Market Commentary — January 10, 2022
With bond yields on the rise, stocks staged a formidable retreat in their first week of trading for the year. Higher rates particularly took a toll on growth and technology stocks, which suffered their biggest weekly decline in nearly a year, as the yield on the 10-year Treasury touched 1.8%.
Market sentiment was shattered by the release of the Fed’s minute notes on Wednesday, revealing plans to move faster and more aggressively, with the first quarter-point rate hike coming as soon as March. Also discussed were accelerated plans to sell the Fed’s $8.8 trillion in Treasuries and mortgage-backed securities.
Also lingering in the background was the ebb and flow of omicron news. A new lockdown in Hong Kong contributed to Wednesday’s selloff along with record case levels in the U.S.
On the economic data front, the Institute for Supply Management’s manufacturing and service numbers missed consensus, and Friday’s jobs report sent mixed signals, adding only 199k jobs in December, but unemployment fell to 3.9% to near pre-pandemic levels.
January has turned into a busy month for us at EQM Indexes. On the heels of launching the EQM BAD Index at the end of October, we have three index launches this month tied to pending ETF filings:
Week of January 10th – EQM Emerging Markets FinTech Index (EMFINQ)
Week of January 18th – EQM Pinnacle Sherman Breakaway TR Index (BKWYIDX)
Week of January 24th – EQM Rare Earth & Critical Materials Index (CRITNTR)
We are excited to bring these new, innovative indexes to market and there will be many more to come in 2022. Who’s BAD?
CEO and Co-Founder