Equity markets posted their third straight weekly loss as new economic data continues to provide evidence of peak inflation and a stubbornly strong US economy. A volatile week of trading ended with the S&P 500 and Russell 2000 lower by 0.17% and 0.12%, respectively, and the NASDAQ declining by 1.93%.1 Meanwhile longer-dated (2+ years) US Treasury yields climbed higher.2

The week began with the Bank of Japan (BoJ) surprising markets by raising the cap on its 10-year yield to 0.50% from 0.25%.3 BoJ Governor Haruhiko Kuroda stated the decision was aimed at improving market functioning and smoothing out a distorted yield curve. 3 Many economists interpret this move as laying the groundwork to pivot from a decade-long easing policy. 3 

A strong consumer and a tight labor market continue to support the US economy. 4 On Thursday the 3Q GDP estimate was revised higher to a 3.2% annualized growth rate from 2.9%.5 Personal consumption was also revised higher, reflecting stronger spending on services. 5 Recession fears continue to rise as a strong US economy may lead the Federal Reserve to overtighten in its fight against inflation. 

The week ended with the PCE Price indices reported on Friday providing continued support of moderating inflation. The PCE Core Index rose 4.7% year over year and 0.2% month over month in November.6 While the PCE indices continue their downward trajectory, these figures remain far from the Federal Reserve’s long-term target of 2%.  As Fed Chairman Jerome Powell put it: “Reducing inflation is likely to require a sustained period of below-trend growth and some softening of labor market conditions.” 7

Thank you for your confidence in our team,

Asset Management Department

Sequoia Financial Group


  1. Morningstar Direct
  2. US Department of the Treasury: https://home.treasury.gov/resource-center/data-chart-center/interest-rates/TextView?type=daily_treasury_yield_curve&field_tdr_date_value_month=202212
  3. Bloomberg Article: Yen Surges as Kuroda’s Yield Cap Shock Sparks Normalization Bets
  4. US Department of Labor: https://www.dol.gov/ui/data.pdf
  5. Bureau of Economic Analysis: https://www.bea.gov/sites/default/files/2022-12/gdp3q22_3rd.pdf
  6. Bureau of Economic Analysis: https://www.bea.gov/sites/default/files/2022-12/pi1122.pdf
  7. The Federal Reserve: https://www.federalreserve.gov/mediacenter/files/FOMCpresconf20221214.pdf

The views expressed represent the opinion of Sequoia Financial Group. The views are subject to change and are not intended as a forecast or guarantee of future results. This material is for informational purposes only. It does not constitute investment advice and is not intended as an endorsement of any specific investment. Stated information is derived from proprietary and nonproprietary sources that have not been independently verified for accuracy or completeness. While Sequoia believes the information to be accurate and reliable, we do not claim or have responsibility for its completeness, accuracy, or reliability. Statements of future expectations, estimates, projections, and other forward-looking statements are based on available information and Sequoia’s view as of the time of these statements. Accordingly, such statements are inherently speculative as they are based on assumptions that may involve known and unknown risks and uncertainties. Actual results, performance or events may differ materially from those expressed or implied in such statements. Investing in equity securities involves risks, including the potential loss of principal. While equities may offer the potential for greater long-term growth than most debt securities, they generally have higher volatility. Past performance is not an indication of future results. Investment advisory services offered through Sequoia Financial Advisors, LLC, an SEC Registered Investment Advisor. Registration as an investment advisor does not imply a certain level of skill or training.

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Investment advisory services offered through Sequoia Financial Advisors, LLC, an SEC Registered Investment Advisor. Registration as an investment advisor does not imply a certain level of skill or training.

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