Stocks struggled for direction Tuesday after an early morning speech from Fed Chair Jerome Powell failed to give any hints on the central bank's plans for monetary policy moving forward. Instead, investors looked ahead to a pair of potentially market-moving events occurring later this week: Thursday's release of the December consumer price index (CPI); and Friday's start of the fourth-quarter earnings season.
Tuesday's choppy price action followed Monday's mixed finish for the major market indexes. At today's close, however, all three benchmarks were higher, with the Dow Jones Industrial Average gaining 0.6% to 33,704, the S&P 500 adding 0.7% to 3,919, and the Nasdaq Composite rising 1.0% to 10,742.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Thursday's CPI data will be key for investors in gauging the effectiveness of the Fed's aggressive policy of interest rate hikes on combating inflation. Additionally, fourth-quarter earnings season will be critical in showing how corporate America fared at the end of 2022 – and how it is perhaps planning for a possible recession in 2023. More and more companies are announcing layoffs these days, with investment banking giant Goldman Sachs (GS, +1.3%) and cryptocurrency exchange Coinbase Global (COIN, +13.0%) being just two of the most recent examples.
The Best Semiconductor Stocks to Buy
The tech sector has been a solid performer so far in 2023, with semiconductor stocks in particular putting in a strong showing. Just look at the iShares Semiconductor ETF (SOXX), which is up nearly 8% for the year-to-date. That easily outpaces the S&P 500's gain of roughly 2%.
The positive price action follows a rough year for semis. In addition to a broader selloff in growth stocks, the industry encountered a number of headwinds over the past 12 months, including a decision by the Biden administration to suspend sales of some U.S. chips to China.
Still, while Wells Fargo analysts maintain a cautious stance on semis to start the new year, they believe the end of this downdraft could be near. Specifically, they think a bottom could be reached in the first half of 2023, which might be the catalyst for investors to get back into chip stocks. "Upon such a bottoming event, we think investors should be prudent and invest in high-quality, secular growth stories that have the potential to re-rate higher as we move through the downturn in the semiconductor cycle," the analysts write in a note. Investors keen on the sector might want to do some due diligence on the best semiconductor stocks, which range from well-known leaders to under-the-radar gems.
-
Ask the Editor — Tax Questions on Disaster Losses and moreAsk the Editor In this week's Ask the Editor Q&A, we answer tax questions from readers on paper checks, hurricane losses, IRAs and timeshares.
-
Paramount+ Premium Debuts: Why "With Showtime" Got the CutParamount+ drops its "with Showtime" label — same price, same content, simpler branding as Showtime titles spread across plans.
-
Stock Market Today: S&P 500, Nasdaq Near New HighsThe S&P 500 hasn't hit a new high since February. It's been since December for the Nasdaq.
-
Stock Market Today: Stocks Struggle to Sustain GainsMixed messages from multiple sources continue to make for a messy market for investors, traders and speculators.
-
Stock Market Today: Stocks Soar on Israel-Iran CeasefireIt was a rocky start to the truce, but a temporary halt to fighting between Israel and Iran appears to be holding for now.
-
The Riskiest S&P 500 Stocks Right NowBuyer beware: These are five of the riskiest stocks in the S&P 500 at the moment, based on one measure of volatility.
-
Stock Market Today: Stocks Rise on a Little More UncertaintyThe best response to a major geopolitical event is often no response at all, especially if you're looking at the big picture.
-
Stock Market Today: Stocks Chop as Chipmakers DeclineSeveral semiconductor stocks fell Friday on reports that the White House may consider revising license waivers for global chipmakers.
-
Stock Market Today: Stocks Grapple for Peace Trade GainsOf course dramatic tension is high on Fed Day, only this time it's about war and peace as well as monetary policy.
-
Stock Market Today: Rally Pauses for "Real End" to Middle East WarThe future is uncertain by nature, but it's hard to recall a time when views on what's next have been this volatile from day to day.
