Stocks rallied into the end of the month, with the Dow adding 368 points. All three major benchmarks jumpstarted 2023 with solid January wins, with the S&P 500 and Nasdaq seeing their best monthly starts to the year since 2019 and 2001, respectively.

Investors unpacked a slightly cooler-than-expected employment cost index today, with compensation increasing only 1% for the fourth quarter. This inflation reading came as the Federal Reserve kicked off its policy meeting, which could bring a 25 basis point interest rate hike at its conclusion tomorrow.

GOLD PRICES EXTEND MONTHLY WIN STREAK

Oil prices edged higher on Tuesday but still shed 2.7% on a monthly basis to mark a third-straight month in the red. Investors remained worried about the incoming interest rate decision and a Organization of the Petroleum Exporting Countries and their allies (OPEC+) committee meeting. March-dated crude rose 97 cents, or roughly 1.3%, to settle at $78.87 per barrel on the day.

Meanwhile, gold prices settled higher to notch a third-straight monthly win. Economic data that pointed to a cooling labor market and a weak economic outlook boosted the yellow metal. April-dated gold, which is now the most active contract, added $6.10, or 0.3%, to settle at $1,945.30 per ounce for the day. For the month, gold rose over 6%.

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