US equity markets rallied sharply on Friday (6 January) after the latest jobs report recorded a cooling in wages growth, ending the first week of 2023 higher - Dow rallied +701-points or +2.13% to 33,630.61, with all 30 index constituents advancing. The index also climbed back above its 50-day moving average (33,346.77).The broader S&P500 gained +2.28%, with Materials (up +3.4%), Information Technology (+2.99%), Real Estate (+2.86%), Consumer Staples (+2.71%) and Industrials (+2.69%) all climbing over >2.5% to lead all eleven primary sectors higher. Tesla Inc rose +2.5% despite news that the electric vehicle (EV) maker has slashed prices in China for the second time in three months. Prices for the Model 3 sedan and Model Y SUV were cut by more than >10%, according to Tesla’s website, with the Model 3 falling to ¥229,900 (~US$33,415) from ¥265,900 (~US$38,647), and the Model Y dropping to ¥259,900 (~US$37,775) from ¥288,900 (~US$41,990). Tesla generated 24% of its total third-quarter revenue from China, and the company’s Shanghai factory produces more than half of the EVs sold worldwide. Costco Wholesale Corp jumped +7.26% following a strong December sales update after the close of the previous session. Southwest Airlines Co settled +4.62% higher despite the carrier warning Friday (6 January) that it expects to report a surprise net loss for the fourth quarter after cancelling thousands of flights over the holidays. It was the best day for the Dow and S&P 500 since 30 November and the best for the Nasdaq since 29 December. The Nasdaq jumped +2.56%. The small capitalisation Russell 2000 rallied +2.26%.
