The Federal Reserve (Fed) raised interest rates strongly, the degree of hawkishness was higher than expected, the fear of an economic recession deepened, the market was clouded, the dollar was still close to an all-time high, and the 10-year US Treasury yield is hovering. about 3.7%, the main index of the US stock market on Thursday (22 Japan) opened low and fell into a trough during the session. Consumer discretionary and technology stocks were all over the place. The Dow Jones and S&P index suddenly pulled to one – a day high in late trading, but has plunged rapidly in the last 10 minutes, with all four major indexes closed.
The Dow Jones closed more than 100 points, barely holding the 30,000 point mark, the S&P closed 0.84% in the black, the Nasdaq fell more than 1%, and the fee fell almost 3%.
On the data front, the adjusted number of Americans receiving unemployment benefits last week reported 213,000, which was below market expectations of 218,000, highlighting that the US labor market remains healthy for the demand for labour.
In terms of politics and economics, a frenetic “Central Bank Super Week” of interest rate hikes began on Thursday. Following the Federal Reserve’s 3-yard rate hike, the Swiss National Bank also raised its benchmark interest rate by 3-yards, leaving the interest rate policy negative again after 7 years.
The central banks of Norway, the United Kingdom and Indonesia announced to raise interest rates by 2 yds, South Africa followed in the footsteps of the Federal Reserve to increase interest rates by 3 yds, Vietnam raised interest rates by 4 yds, Taiwan’s central bank raised interest. rates by half, and Brazil’s central bank did not move, but Turkey bucked the trend and fell 4 yards, following the 8th Two consecutive rate cuts after the month.
Fed Chairman Powell acknowledged on Wednesday that a recession is possible and that achieving a soft landing will be very challenging, while Treasury Secretary Janet Yellen expressed confidence in the Fed on Thursday. “I believe there is a way to successfully reduce inflation while maintaining a strong labor market, and I really hope the Fed succeeds,” he said.
The global epidemic of new coronary pneumonia (COVID-19) continues to spread. Before the deadline, data from Johns Hopkins University in the United States indicated that the number of confirmed cases worldwide had exceeded 613 million, and that the number of deaths has exceeded 6.53 million. More than 12.7 billion vaccine doses have been administered in 184 countries worldwide.
Japanese Prime Minister Fumio Kishida announced that border control policies will be relaxed again on October 11, including opening free travel to foreign tourists and abolishing the one-day cap of 50,000 arrivals. Taiwan Chief Executive Su Zhenchang said: “Independent epidemic prevention 0 + 7” is expected to hit the road on October 13. At the same time, it will also open visa-free countries to enter, and cancel the ban on tourism groups.
The performance of the four major US stock indexes on Thursday (22nd):
Five kings of technology were mixed. Apple (AAPL-US) was down 0.64%; Meta (META-US) was up 0.49%; Alphabet (GOOGL-US) was up 0.87%; Amazon (AMZN-US) was down 1.04%; Microsoft (MSFT-US) was up 0.85%.
More than half of the Dow Jones components ended in the dark. American Express (AXP-US) fell 3.82%; Boeing (BA-US) fell 3.2%; Goldman Sachs (GS-US) fell 2.43%; Disney (DIS-US) fell 2.23%; Merck (MRK-US) rose 3.53 % .
Half of the constituent stocks were eliminated. Intel (INTC-US) fell 1.40%; Micron (MU-US) fell 0.88%; NVIDIA (NVDA-US) fell 5.28%; AMD (AMD-US) fell 6.69%; Applied Materials (AMAT-US) fell 2.35%; Qualcomm (QCOM-US) fell 0.75%; Texas Instruments (TXN-US) fell 0.42%.
Taiwan stocks ADR fell in one piece. TSMC ADR (TSM-US) fell 1.96%; ASE ADR (ASX-US) fell 0.91%; UMC ADR (UMC-US) fell 2.43%; Chunghwa Telecom ADR (CHT-US) fell 0.65%.
Apple (AAPL-US) fell 0.64% to $152.74 a share. Foxconn’s Shenzhen and Zhengzhou factories have just entered the peak season for the production of the iPhone 14 series. However, due to the pre-orders of the two standard iPhone 14 mobile phones not as expected, according to incomplete statistics, from Zhengzhou Foxconn at least 5 workshops that have dismantled or will dismantle production lines Rarely work overtime during peak season.
Tesla ( TSLA-US ) fell 4.06% to $288.59 a share. Tesla is recalling nearly 1.1 million vehicles in the United States after its automatic window reversing system failed to respond correctly when obstacles were detected, increasing the risk of injury, the media reported.
Boeing (BA-US) closed 3.20 percent lower at $138.71 a share, with its shares edged up in after-hours trading. The US Securities and Exchange Commission (SEC) announced after hours that Boeing has agreed to pay $200 million to settle with the SEC over allegations that Boeing and its former CEO Dennis A. Muilenburg failed to disclose safety issues in right with his 737 Max.
FedEx (FDX-US) closed up 0.84% at $154.54 a share. FedEx, known as the “economic bellwether,” made a technical error during Thursday’s session and unexpectedly announced its latest earnings earlier than expected. Adjusted earnings per share were $3.44 and revenue was $23.24 billion. For fiscal 2023, the company expects total cost savings of $2.2 billion to $2.7 billion.
- The number of Americans who received unemployment benefits last week reported 213,000, expected 218,000, the previous value of 208,000
- The number of people receiving unemployment benefits in the United States reported 1.379 million last week, 1.4 million is expected, and the previous value was 1.401 million
- The monthly rate of the leading US index in August was -0.3%, expected -0.1%, the previous value – 0.5%
- The US September Kansas Fed composite manufacturing index reported 1, expected 5, the previous value of 3
- The United States reported in September the Kansas Fed manufacturing index 2, the previous value – 9
Wall Street Analysis
Evercore ISI equity and derivatives strategist Julian Emanuel cut his year-end target forecast for the S&P 500 to 3,975 from 4,200 and expects a full retest of the June lows in the coming weeks.
Jonathan Krinsky, chief market technician at BTIG, said: “The bad news is that the stock market is still at its seasonally weakest point of the year, and the good news is that the stock market will quickly reverse in the middle of the month October, with expectations for a test or group in June before that. , which should provide a better entry point for a year-end rally.”
Figures are updated before the deadline, please refer to the actual quote.