Nasdaq Posts Fifth Straight Week of Gains

Good evening:

“Our core holdings are the same as last year. We own shares of the best businesses in the world. Our attitude is that of a museum director: We only want to own masterpieces.” - François Rochon

Investors digested a lot this week between the FOMC meeting, big-tech earnings, and surprising jobs data. Plus, Adam Gould, Head of Quantitative Strategy, revealed his 2023 Quantitative Strategy Outlook, including his S&P 500 price target. 

The FOMC on Wednesday raised rates by 25 bps, as expected. In the post-meeting press conference, Fed Chair Jerome Powell buoyed markets by acknowledging that “the disinflationary process has started,” but he warned that “we’re going to be cautious about declaring victory.” Asked about the odds that the Fed would keep the rate below 5%, he said it was “certainly possible.” 

In our weekly research huddle, Head of Technical Strategy Mark Newton suggested Powell’s remarks show that “the Fed is definitely retreating from this uber hawkishness.” 

Newton’s work has shown that the broader trend of breadth and momentum continues to improve as many stocks break out to their highest levels in six months. Yields and the U.S. dollar have broken down, a negative correlation that has boded well...