Monthly Market Update (January): 3 Things You Need to Know

Fed predictions, Omicron, geopolitical tensions, oh my! This year’s stock market weakness culminated with some of the sharpest intraday swings since the start of the pandemic. However, the stock market is forward looking, and investors may have already priced in this information.

Here are 3 things you need to know:

  1. A sell-off among leading tech stocks contributed to a 9% decline for the Nasdaq composite, marking the index’s largest monthly decline since 2008. Over 75% of Nasdaq stocks were down 50% or more from their 52-week high at one point during the month.
  2. The Federal Open Markets Committee (FOMC) left the funds rate target range unchanged at 0–0.25% but is preparing for a March rate hike and suggested it could front-load rate hikes even more than previously indicated. The Fed Funds Futures imply 5 full rate hikes this year.
  3. The Russia-Ukraine crisis heated up as the U.S. and its NATO allies are bolstering troops in Eastern Europe and crafting harsh sanctions.


  1. Sources: J.P. Morgan Asset Management – Economic Update; Bureau of Economic Analysis (; Bureau of Labor Statistics (; Federal Open Market Committee (
  2. Indices:
    • The Barclays Aggregate Bond Index is a broad-based index used as a proxy for the U.S. bond market. Total return quoted.
    • The S&P 500 is designed to be a leading indicator of U.S. equities and is commonly used as a proxy for the U.S. stock market. Price return quoted.
    • The MSCI ACWI ex-US Index captures large and mid-cap representation across 22 of 23 developed market countries (excluding the U.S.) and 27 emerging market countries.  The index covers approximately 85% of the global equity opportunity set outside the U.S. Price return quoted.
    • The MSCI Emerging Markets Index captures large and mid-cap segments in 26 emerging markets. Price return quoted (USD).

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