Morgans AM: Wednesday, 8 February 2023

Morgans Financial Limited

US equity markets advanced after a volatile session as investors digested the latest observations from Federal Reserve Chair Jerome Powell - Dow gained +266-points or +0.78%, The broader S&P500 +1.29%, with Energy (up +3.08%), Communication Services (+2.48%) and Information Technology (+2.46%) climbing over >2.5% to lead eight of the eleven primary sectors higher. The more defensive Consumer Staples (down -0.36%), Real Estate (-0.31%) and Utilities (-0.08%) settled in the red. More companies announcing job cuts, with eBay Inc (up +0.38%) flagging plans to cut 500 jobs or ~4% of its workforce, according to a filing with the Securities and Exchange Commission (SEC). Zoom Video Communications Inc jumped +9.85% after the company announced plans to cut about 1,300 employees, or ~15% of its workforce. Chief Executive Officer (CEO) Eric Yuan wrote in a blog post shared to the company’s website that as the world continues to adjust to life after the pandemic, the company needs to adapt to the “uncertainty of the global economy” as well as “its effect on our customers.” The Nasdaq outperformed with +1.90% rally. The small capitalisation Russell 2000 +0.76%.