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US stock markets weaken as balance sheet reduction begins

Picture of Drew Meredith, CFP
Drew Meredith, CFP
Picture of Drew Meredith, CFP

Drew Meredith, CFP

Drew Meredith is one of the founders of Wattle Partners. He is an experienced financial and investment adviser with expertise in self-managed superannuation funds, superannuation strategies, investment analysis and portfolio construction. Drew is a Partner at Wattle Partners.
More analysis

The Nasdaq delivered its worst session in several weeks, falling 2.3% on Tuesday as selling pressure swept the market.

The key driver was an announcement by one of the Federal Reserve’s members that they would begin to shrink their balance sheet. That means the Fed, which has been buying US Government bonds of various terms, would stop doing so and start letting some mature without reinvesting. This is seen as another step towards higher rates.

Musk takes board seat

The S&P 500 and Dow Jones outperformed, down 1.3% and 0.8%, with Twitter (NYSE: TWTR) gaining another 2% following conformation that Elon Musk would gain a board seat.

Exxon’s bumper profit

Oil company Exxon Mobil (NYSE: XOM) indicated it will likely deliver a bumper quarterly profit of US$9 billion in the first quarter following a jump in the oil price, but that Russia-related writedowns may hit earnings.

Meanwhile, the US trade deficit fell after hitting a record amid a surge in imports, down to $89.2 billion.

US stock market movers

Here’s how other popular US stocks performed on Tuesday.

Back home on the ASX, the S&P/ASX 200 (ASX: XJO) is expected to follow US stock markets lower when the market opens this morning. For a round-up of the latest news, check out my ASX 200 morning report.

The Golden Rules of Investing

We might be experts in retirement, but with combined financial advice experience of 35+ years, we’ve nearly seen it all. 

In mid-2023, our senior team at Wattle Partners Financial Planning put the finishing touches on a brand-new report “The Golden Rules of Investing“.

In this free report, we outline the key principles that determine all of the portfolio construction and investment decisions of Wattle Partners. Collated over decades, this paper should be seen as a work-in-progress, constantly under review in light of the ever-evolving nature of markets. 

You’ll find the free report on my Author page. Simply click the button below to view the Golden Rules.

Get the golden rules

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Wattle Partners is a financial advice firm, servicing clients around Australia, specialising in retirement planning (pre and post retirement). 

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