Tuesday's Markets Update (January 24, 2023)
On Tuesday, the markets were shaky due to pressure from heavily overbought stocks (on daily charts) in many sectors. Traders watched as the NASDAQ opened at 11302 and closed at 11334, adding a meager 0.3 percent. Similarly, Bitcoin opened at 22860 and closed at 23010, gaining 0.7 percent. However, just when it seemed like things were settling down, the BTC market took a sharp turn, correcting to 22300 in after-hours trading, losing 3.1 percent.
Additionally, the Flash US PMI Composite Output Index - an early indication of the PMI data for January to be published the following month - showed a slight upturn (to a 3-month high of 46.6), propelled by service sector firms continuing to expand their workforce (source: SP Global). This is added to by the Richmond FED Survey of Manufacturing Activity showing a minor decrease in the number of employees (-3 in January, compared to +3 in December) despite a sharp drop in the volume of new orders (-24 in January, compared to -4 in December). This might grab the attention of the FOMC's hawks at their upcoming meeting.