Shares of banks and other financial institutions fell as volatility returned to stock and bond markets.
Treasury yields and the U.S. dollar gained ground in the wake of strong jobs data, reflecting expectations for a hawkish response to the data from the Federal Reserve.
Policy-sensitive two-year Treasury rates hit a five-week high in the wake of the strong ADP survey.
Fed Bank of St. Louis President James Bullard was among officials who warned Thursday that more rate increases would be necessary to contain inflation.
For 2023, "we see peak inflation but persistence in pricing pressures, a steadfast Fed, elevated market interest rates, a mild recession, flat earnings, and a retest of the October equity market lows before investors price in recovery during the second half of the year," said John Lynch, chief investment officer at financial advisory Comerica Wealth Management.
Citadel Securities finished 2022 with $54.5 billion in assets under management and generated $28 billion in revenue for the year as Kenneth Griffin's hedge-fund and electronic-trading businesses thrived in volatile markets.
New York Attorney General Letitia James filed a civil lawsuit against Alex Mashinsky, alleging the co-founder of bankrupt crypto lender Celsius Network defrauded investors out of billions of dollars of digital currency.
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
01-05-23 1712ET
