Positive statistics on the US labor market negatively affected stock indices

Analysts believe that the reduction in shipping costs (Baltic Dry Index), stabilization in the commodity markets, and an increase in US retail inventories indicate that inflationary pressures in the US will soon reduce. Typically, the lag between indices is up to six months. Therefore, analysts began to lean toward the option that the Fed will not hike the rates sharply by 0.5% in March and will not make five rate hikes in 2022. The probability of such a scenario is currently 34%. So far, most analysts believe the Fed will raise rates by 0.25% in March and make two more hikes by the end of 2022. This means that there is a high probability of growth of stock indices until spring as the markets initially included a more aggressive scenario in the price. But from spring to late summer, a correction in the stock markets is very likely.

Nearly 4.4 million electric cars were sold worldwide last year, up 121% from 2020. And analysts believe that this is only the beginning of the electrification of cars.

Snap’s stock price jumped 58.8% on Friday, the best daily gain in the company’s history. The company reported its first-ever quarterly profit in October and December. At the same time, revenue increased by 42%.

The online visual bookmarking service Pinterest cut net income last quarter but increased revenue. The company’s stock jumped 11.2% on the report.

According to Wall Street analysts, the worst is over for Robinhood stock. Analysts believe Robinhood stock has found the bottom, and it’s time to buy.

The energy market began February with high oil prices. On Friday, oil prices added another 2%. The increase in oil prices was caused by factors such as supply shortages and the geopolitical situation in Eastern Europe and the Middle East. Considering that OPEC+ is following its production plan, traders should not expect a decrease in oil prices soon. Some analysts forecast the price of $100 per barrel in the coming months.

Asian markets were mostly trading in positive territory on Friday. Japan Nikkei 225 (JP225) gained 0.73% (+2.81% for the week), Australian S&P/ASX 200 (AU200) added 0.60% (+1.89% for the week), Hang Seng of Hong Kong (HK50) jumped by 3.24% (+0.95% for the week). But on Monday, major Asian indices opened with the decrease. The spread of the Omicron strain in the region has a negative impact on investor sentiment. Bars and restaurants are still banned in large parts of Japan. This week, investors’ attention will be focused on central bank meetings in India, Indonesia, and Thailand. In addition, the reports of some of the largest companies in the region, including Japanese automakers, will be published.

At the commodities market, futures on cocoa (+8.98%), soybeans (+5.88%), WTI oil (+5.87%), heating oil (+5.18%), copper (+4.55%), lumber (+4.39%), Brent oil (+2.77%) and coffee (+2.63%) showed the biggest gains by the end of the week. Orange juice futures (-8.81%), palladium (-3.78%), wheat (-2.67%) and corn (-2.24%) showed the biggest drop.