The US stock market includes interest rate hike scenario in pricing

US initial jobless claims increased by 55,000 to 286,000 for the week, a three-month high. Analysts had predicted a decline, so the data turned out worse than expected.

Rick Reeder of BlackRock said yesterday that US stocks could still rise 10% or more in 2022 as inflation declines and corporate earnings continue to rise. The head of bond investments at the $10 trillion asset manager said the strength of the US economy should help companies show strong financial results. Reeder said he expects GDP growth of around 7% and predicts earnings growth of about 12% to 15%.

Peloton Interactive (NASDAQ: PTON) plans to temporarily shut down the production of connected fitness products amid falling demand. The company’s stock fell by 24% yesterday.

On Thursday, streaming service Netflix Inc (NASDAQ: NFLX) reported better-than-expected fourth-quarter earnings but gave a weak first-quarter subscriber growth outlook, sending shares down nearly 20% after market close.

Analysts began lowering their forecasts for FAANG companies. Considering that the market has recently been holding on to its highs due to the growth of FAANG companies, this situation may lead to a significant correction in the stock market.

The new draft of the US sanctions against Russia provides measures against Nord Stream 2, including organizations associated with it and their shareholders. US congressmen propose to impose sanctions against Russian businessmen: Abramovich, Usmanov, Deripaska, Sechin, Miller, Kostin, and Timchenko.

On Friday, the Asia-Pacific stock indices are declining following the US stock indices. Hong Kong’s Hang Seng decreased by 0.12%, Australia’s ASX 200 (AU200) fell by 2.27%, Japan’s Nikkei 225 Index (JP225) lost 0.9%. The Bank of Japan stressed that it is in no hurry to abandon its ultra-soft monetary policy and called the recent inflation-induced rise in prices temporary. Japan’s core consumer prices rose 0.5% in December compared to last year. Japan’s nationwide core consumer price index, excluding food prices, showed growth for the fourth month in a row.