Stocks rally on soft landing hopes, Goldman Layoffs, oil rallies on China optimism, gold higher, Solana impresses

US stocks are rallying as soft-landing hopes grow ahead of this week’s key CPI report that should show disinflation trends remain intact. ​ Wall Street is pricing in the Fed to be one and done with tightening and possibly cutting rates at the end of the year. ​

Today’s risk-on rally for stocks got a boost from a weaker dollar and optimism that China’s reopening was gaining steam. ​ Corporate headlines are showing consistent stories of a weakening consumer which should help bring down inflation. ​ The retail space is softening quickly as Lululemon cut its guidance and Macy’s liquidations will start this month.

Goldman Layoffs

Goldman Sachs is expected to start a massive round of layoffs this week. The firm is expected to reduce its workforce by 3,200 positions. Just like Amazon, Goldman had several years of robust hiring, so this expected round of layoffs isn’t surprising many. ​ If Goldman, who has been doing relatively well (profits are declining, but it is for everyone else too) is cutting jobs, Wall Street should not be surprised if more investment banks/trading units announce job cuts this quarter.

A few weeks ago, reports circulated that they were planning on reducing staff by 3,900 positions, so this latest reporting of 3,200 is not as bad as feared.

Crypto

A month ago, Solana was dead for many crypto traders. ​ Solana was a casualty of the collapse of FTX and Alameda Research. Everyone knew Solana had deep financial ties with FTX, so it was no surprise that the SOL prices collapsed. ​ Solana was supposed to be the ethereum killer and it still has a chance if it can survive this dark period. ​ Solana does a lot of things right with the environment, scalability, and has attracted some key partnerships.

Cryptos are rallying today, but BNB, Cardano, Solana, MATIC, and Polkadot are easily outperforming bitcoin and ethereum. ​ ​

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Ed Moya

Ed Moya

Senior Market Analyst, The Americas at OANDA
With more than 20 years’ trading experience, Ed Moya is a senior market analyst with OANDA, producing up-to-the-minute intermarket analysis, coverage of geopolitical events, central bank policies and market reaction to corporate news. His particular expertise lies across a wide range of asset classes including FX, commodities, fixed income, stocks and cryptocurrencies. Over the course of his career, Ed has worked with some of the leading forex brokerages, research teams and news departments on Wall Street including Global Forex Trading, FX Solutions and Trading Advantage. Most recently he worked with TradeTheNews.com, where he provided market analysis on economic data and corporate news. Based in New York, Ed is a regular guest on several major financial television networks including CNBC, Bloomberg TV, Yahoo! Finance Live, Fox Business and Sky TV. His views are trusted by the world’s most renowned global newswires including Reuters, Bloomberg and the Associated Press, and he is regularly quoted in leading publications such as MSN, MarketWatch, Forbes, Breitbart, The New York Times and The Wall Street Journal. Ed holds a BA in Economics from Rutgers University.
Ed Moya