The Federal Reserve (Fed) is about to raise interest rates. After Ford issued a supply chain warning, the inversion of the US bond yield curve intensified. The main US stock index opened lower on Tuesday (20th). , closed more than 300 points in the black, and Apple bucked the trend and closed in the red.
In terms of politics and economy, the United States Federal Reserve (Fed) will hold a policy meeting from September 20 to 21. It is expected to announce the results of interest rate decisions early in the morning of the 22nd, Taipei time. Interest rates may not be on its highest until March 2023, when they rise to 4.49%.
The world’s central banks are racing to raise interest rates to fight high inflation. Sweden’s central bank unexpectedly raised its policy rate by 4 yards to 1.75% on Tuesday, the biggest move in almost 30 years. Among the ten control authorities best currency, only two central banks have raised interest rates by any means this year.
Awaiting the Fed’s decision, the inversion of the US bond yield curve has intensified. The 10-year US Treasury yield is still well above 3.5%, the highest since 2011, and the 2-year US Treasury yield is approaching 4% , the bond market continues to signal a bigger recession.
The US Department of Energy announced on Monday that it would sell up to 10 million barrels of oil from the Strategic Petroleum Reserve (SPR) for delivery in November, as the US dollar strengthened and the market Crude oil remains under pressure.
UN Secretary-General Antonio Guterres warned the world on Tuesday that a winter of global discontent is approaching in a world plagued by multiple crises ranging from the Ukraine war to climate warming, with countries mired in “massive global dysfunction”. Guterres emphasized that cooperation and dialogue is the only way forward, and that no power or group can dictate alone.
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 612 million, and that the number of deaths has exceeded 6.52 million. More than 12.7 billion vaccine doses have been administered in 184 countries worldwide.
The performance of the four major US stock indexes on Tuesday (20th):
- The Dow Jones Industrial Average fell 313.45 points, or 1.01%, to 30,706.23.
- The Nasdaq lost 109.97 points, or 0.95 percent, to end at 11,425.05.
- The S&P 500 lost 43.96 points, or 1.13 percent, to end at 3,855.93.
- The Philadelphia semiconductor index fell 38.4 points, or 1.49 percent, to end at 2,539.5.
Five kings of technology are only Apple. Apple (AAPL-US) rose 1.57%; Meta (META-US) fell 1.30%; Alphabet (GOOGL-US) fell 1.87%; Amazon (AMZN-US) fell 1.98%; Microsoft (MSFT-US) fell 0.85%.
Dow Jones components were almost wiped out, with only Boeing and Apple in the red. Boeing (BA-US) rose 0.73%; Nike (NKE-US) fell 4.47%; Pioneer Heavy Industries (CAT-US) fell 2.26%; Home Depot (HD-US) fell 2.23%; Traveler (TRV-US)) fell 2.03%.
The fee and half of the electorate were generally weak. Intel (INTC-US) fell 1.63%; Micron (MU-US) fell 2.50%; NVIDIA (NVDA-US) fell 1.54%; AMD (AMD-US) fell 1.98%; Applied Materials (AMAT-US) fell 1.78%; Qualcomm (QCOM-US) fell 1.48%; Texas Instruments (TXN-US) fell 0.11%.
Taiwan stocks ADR collectively in black. TSMC ADR (TSM-US) fell 0.10%; ASE ADR (ASX-US) fell 0.54%; UMC ADR (UMC-US) fell 2.34%; Chunghwa Telecom ADR (CHT-US) fell 0.96%.
Ford Motor (F-US) fell 12.32% to $13.09 a share, its worst one-day performance since January 2011. Ford said on Monday that inflation could lead to an extra $1 billion in costs and that the number of vehicles failed due to material shortages was higher than expected.
Apple ( AAPL-US ) rose 1.57% to $156.90 a share on Tuesday. Tianfeng International Securities analyst Ming-Chi Kuo revealed that Apple’s iPhone 14 Pro models will account for 60-65% of iPhone 14 series shipments in the second half of 2022, higher than the previous estimate of 55-60%, and the higher-margin iPhone 14 Pro models Attracting increasing demand, it can help improve iPhone revenue and average selling price (ASP).
Twitter (TWTR-US) rose 0.048% to $41.68 a share. Tesla ( TSLA-US ) fell 0.11% to $308.73 a share. Musk, the world’s richest man on Twitter, has the latest development in the legal battle with Twitter. As part of the lawsuit, Musk will be questioned by Twitter lawyers next week. The case will officially open on October 17 and lasts for five years Days to get the results before an application to occupy October 24 expires.
Huida announced a new generation of “Ada” cores, as well as RTX 4090 and RTX 4080 graphics cards, which will use TSMC’s 4N process. However, NVIDIA (NVDA-US) failed to hold on to intraday gains on Tuesday, with its shares closing 1.54% lower at $131.76 per share with the broader market.
US fast fashion apparel group Gap (GPS-US) slipped 3.26% to $9.21 a share. Gap announced on Tuesday cuts of 500 jobs in order to reduce costs due to a reduction in sales and profits.
Witton Electronics (WDC-US) fell 2.95% to $35.54 a share. Deutsche Bank on Tuesday downgraded Witton’s stock status to “hold” from “buy”, mainly due to declining demand, and Witten’s profit and revenue may be at the lower end of its forecast.
- The annual total of new housing starts in the United States in August reported 1.575 million, estimated at 1.445 million, and a previous value of 1.404 million
- The annual total of building permits in the United States in August reported 1.517 million, estimated 1.604 million, and a previous value of 1.685 million
Wall Street Analysis
Cresset Capital strategist Jack Ablin said: “Investors have priced in a three-point rate hike very well, but there may be concerns that Fed Chairman Powell could be too hawkish in his press conference.”
Peter Cardillo, market economist at Spartan Capital Securities, said: “Traders are very cautious ahead of the Fed announcing the rate decision. The market is jittery because of the lack of consumption of higher US bond yields.”
“Whether a size 3 rate hike is going to be the norm for the next few interest rate meetings is what the market is basically worried about, and I don’t expect it to get to a size 4, and that’s what the market is thinking it right now,” said Cardillo.
Figures are updated before the deadline, please refer to the actual quote.