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Stocks rally as Google job cuts support disinflation trends, Fed speak, Oil’s good week, Gold hovers near 9-month highs, Bitcoin above $21k

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US stocks are rallying as tech stages a comeback following Google parent Alphabet’s announcement that they will cut its global workforce by more than 6%. Google’s global job loss of 12,000 jobs confirms the growing trend towards cost-cutting measures at mega-caps. ​It was first Amazon and Microsoft that made major job cuts announcements. Now it’s Google. ​This theme should be spread to other sectors throughout the year, which should keep disinflation trends in check.

Massive layoff announcements will prevent wage pressures rising and should bring inflation back to target by the year’s end. ​

Fed

The economic data are not in sync for another Fed tightening. ​Despite the many layoff announcements made this earnings season, it seems that the labor market remains too hot. ​The Fed appears poised to raise the rate by 25 basis points at the February 1stst Meeting, but one final half-point hike that is followed up by a March downshift might work to keep disinflation trends strong throughout the summer.

Fed’s Harker reiterated his support for a 25 basis point pace going forward. ​ Fed’s George, a non-voter, noted that the economy is responding…



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