But by midday, the rally began to lose steam and markets ultimately settled relatively unchanged. At the same time, volatility crept slightly higher as investors prepare for economic news and the beginning of earnings season kicking off on Friday.
Coinbase is out this morning with news they are planning layoffs equaling 20% of their workforce. This comes after laying off 18% of workers back in June. This is continuing a trend in layoffs which began in technology companies but has since moved to other segments of the economy, including finance. This week, Goldman Sachs will let go 3,200 employees which is roughly 6.5% of their workforce. However, that number is below the possible 8% number the company reported could be cut.
If investors are looking for some positives from Monday’s trading, despite the failed rally, they can find it in the tech sector. Although the gains there were nominal, both Appleand Tesla closed higher. If there are two stocks that retail traders are most focused on, it is those two stocks. Therefore, I’ll be keeping an eye on these two stocks and whether or not they can change the narrative following a difficult 2022.
Elsewhere this morning, Fed Chairman Jerome Powell is speaking at a forum on central bank independence. Many in the markets were hoping for some commentary on monetary policy, but they didn’t get it. Powell largely kept his comments to the necessity of keeping central banks free from political intervention.