January was a much needed bounce back month led by Crypto (+36.13%) and Softs (+12.22%). Crypto (+36.13) stayed true to its history of extreme volatility by producing a large gain after a poor performance last month. Stocks rallied in January, capping a gain of nearly +6.20% for the S&P 500. Energy (-8.69%) and Livestock (-8.69%) were the only sectors not in the positive for the month of January. The performance in Energy (-8.69%) was mainly attributed to the poor month in natural gas, which stood at over -40%. The Fed is set to raise interest rates by 25 basis points later today, with all eyes on how Jerome Powell responds to speculation on a cut later this year. After a 50 basis point increase last month, a quarter point would be the smallest rate hike since the start of the cycle last March.
Sector & Index Performance Consists of the following:
Grains: Corn, Soybean Meal, Oats, Soybeans, Soybean Oil, Wheat, Rough Rice. Livestock: Live Cattle, Feeder Cattle, Lean Hogs. Softs: Cocoa, Orange Juice, Sugar No. 11, Random Length Lumber, Coffee, Cotton No. 2. Currencies: Euro Currency, Japanese Yen, British Pound, Canadian Dollar, Swiss Franc, US Dollar, Brazilian Real, Mexican Peso, Australian dollar. Indices: S&P 500, Mini Dow, Mini Nasdaq. Interest Rates: 30-year t-bond, 10-year t-note, 5-year t-note, Eurodollars. Metals: Gold, Silver, Copper, Platinum, Palladium. Energy: Crude Oil, Reformulated Gas, Natural Gas, Heating Oil, Denatured Fuel Ethanol. Crypto: Bitcoin and Ethereum. S&P 500 Index – All data collected from investing.com. S&P GSCI Index – data collected from us.spindices.com/indices/commodities/sp-gsci.