Skip navigation Scroll to top
Scroll to top

LGT Navigator: Tech stocks provide boost on Wall Street

January 23, 2023

On the New York Stock Exchange, the equity indices posted a solid end to the week on Friday, driven by strong tech stocks. Technology stocks on the Nasdaq benefited from unexpectedly good quarterly figures from Netflix. ECB chief Lagarde, meanwhile, emphasised continuing the current monetary policy stance and warned of inflationary effects from the reopening in China. Besides the ongoing corporate earnings season this week, the upcoming leading indicators, in the form of the regular Purchasing Managers' Surveys, are likely to show how high the probability of recession in Europe and the US is now.

Tech stocks provide boost on Wall Street

The Dow Jones Industrial closed on Friday at 33,375.49 points with a daily gain of 1.0%. Nevertheless, it was still down 2.7% for the week. The S&P 500 gained 1.89% to 3,972.61 points before the weekend. The strongest gains, however, were on the Nasdaq, where the indices were around 2.8% higher. Netflix's stronger-than-expected subscriber figures were particularly responsible for the good mood in the tech sector. Shares in the streaming pioneer gained more than 8% and reached their highest level in nine months.

In the bond market, meanwhile, the benchmark yield on ten-year US government securities remained nearly unchanged at just under 3.5%. The US dollar weakened against the euro at the beginning of the week and is now trading close to the 1.09 mark.

In Asia, most stocks rose on Monday, but most stock exchanges remained closed for the Chinese New Year - some, like Shanghai, for the whole week. In Tokyo, the Nikkei 225 gained a good 1% at the start of the week.

ECB head Lagarde warns China's reopening will fuel inflation

The easing of pandemic measures in China and the reopening of the economy and consumption could increase inflationary pressures. This assessment was shared by ECB President Christine Lagarde at the World Economic Forum in Davos. China's reopening, she said, would be positive for China in particular, but also for the rest of the world. Nevertheless, this is likely to increase inflationary pressure because China's energy consumption will rise. The additional demand will lead to higher inflationary pressures, Lagarde said.

ECB leaders call for continuation of decisive course

The European central bank president had already stressed on Friday that the ECB wants to continue the fight against high inflation with determination. According to Lagarde, the ECB must stay the course, although inflation may have already peaked. The ECB will do what is necessary, Lagarde stressed at the WEF in Davos. ECB Governing Council member Klaas Knot also reiterated that the ECB should continue the pace of rate hikes (by half a percentage point) at the next two meetings. "I think we will stay in tightening mode until the summer," the Dutch central bank president opined.

Economic Indicators January 23

CET Country Indicator Last period
16:00 EZ Consumer Confidence (January) -22.2
16:00 US Leading Indicator (January) -1.0%
11:00 EZ ECB President Lagarde speaks

Earnings Calender January 24

Country Company Period
SZ Logitech Q3
US Johnson & Johnson Q4
US Visa Q4
US Verizon Q4
US General Electric Q4


LGT helps you make informed investment decisions

All about global economic and market trends at a glance

Subscribe to LGT's research newsletters

You can also follow us on Facebook or LinkedIn – or visit MAG/NET and discover interesting background articles. If you have questions, a consultant from the bank will be happy to help you.


Publisher: LGT Bank (Switzerland) Ltd., Glärnischstrasse 36, CH-8027 Zurich
Editor: Alessandro Fezzi, E-Mail:
Source: LGT Bank (Switzerland) Ltd.


Risk Disclosure (Disclaimer)
This publication is an advertising material / marketing communication. This publication is intended only for your information purposes. It is not intended as an offer, solicitation of an offer, or public advertisement or recommendation to buy or sell any investment or other specific product. The publication addresses solely the recipient and may not be multiplied or published to third parties in electronic or any other form. The content of this publication has been developed by the staff of LGT and is based on sources of information we consider to be reliable. However, we cannot provide any confirmation or guarantee as to its correctness, completeness and up-to-date nature. The circumstances and principles to which the information contained in this publication relates may change at any time. Once published information is therefore not to be interpreted in a manner implying that since its publication no changes have taken place or that the information is still up to date. The information in this publication does not constitute an aid for decision-making in relation to financial, legal, tax or other matters of consultation, nor should any investment decisions or other decisions be made solely on the basis of this information. Advice from a qualified expert is recommended. Investors should be aware of the fact that the value of investments can decrease as well as increase. Therefore, a positive performance in the past is no reliable indicator of a positive performance in the future. The risk of exchange rate and foreign currency losses due to an unfavorable exchange rate development for the investor cannot be excluded. There is a risk that investors will not receive back the full amount they originally invested. Forecasts are not a reliable indicator of future performance. In the case of simulations the figures refer to simulated past performance and that past performance is not a reliable indicator of future performance.

The commissions and costs charged on the issue and redemption of units are charged individually to the investor and are therefore not reflected in the performance shown. We disclaim, without limitation, all liability for any losses or damages of any kind, whether direct, indirect or consequential nature that may be incurred through the use of this publication. This publication is not intended for persons subject to a legislation that prohibits its distribution or makes its distribution contingent upon an approval. Persons in whose possession this publication comes, as well as potential investors, must inform themselves in their home country, country of residence or country of domicile about the legal requirements and any tax consequences, foreign currency restrictions or controls and other aspects relevant to the decision to tender, acquire, hold, exchange, redeem or otherwise act in respect of such investments, obtain appropriate advice and comply with any restrictions. In line with internal guidelines, persons responsible for compiling this publication are free to buy, hold and sell the securities referred to in this publication. For any financial instruments mentioned, we will be happy to provide you with additional documents at any time and free of charge, such as a key information document pursuant to Art. 58 et seq. of the Financial Services Act, a prospectus pursuant to Art. 35 et seq. of the Financial Services Act or an equivalent foreign product information sheet, e.g. a basic information sheet pursuant to Regulation EU 1286/2014 for packaged investment products for retail investors and insurance investment products (PRIIPS KID).