U.S. stock market capitalization by 2022 leaves much to be desired. The key U.S. stock market indexes – DOW Jones, NASDAQ, and S&P 500 – finished Thursday without price changes. However, indices are staying near their local peaks and are not yet in a hurry to resume their bearish trend. 

U.S. stock market news today

Mike Wilson, chief equity research analyst at Morgan Stanley, urged investors not to buy stocks just yet as he thinks the market will start falling again. He draws attention to the fact that a rate hike always triggers a market decline that stops only when rates stop rising. 

Earlier, Jerome Powell talked about “temporary inflation,” and that a recession is impossible with a strong labor market and low unemployment. But the economy is already contracting and is unlikely to start growing in the third and fourth quarters if rates continue to rise! Thus the U.S. economy is headed for a recession after all.

In the meantime, the week ended with the unemployment and labor market reports that Powell based his positive expectations on. The projections are quite optimistic. The NonFarm Payrolls are expected to be 250,000-290,000 new jobs, and the unemployment rate is likely to remain at 3.6%. However, if the NonFarm number is below forecasts, it could hit the ambitions of dollar bulls and the U.S. stock market. 

If the dollar can still hold up under the weight of the disappointing statistics due to the ongoing cycle of rate hikes, then stock indices should show a decline on the worsening macroeconomic indicators in the U.S.