The Dow Jones Industrial Average climbed more than 100 points, breaking past 36,000, hitting a record high. Despite expectations that the Federal Reserve (Fed) will announce a cut in its bond-buying program following quantitative easing (QE) after tomorrow’s monetary policy meeting.
As of 10:34 p.m. Thai time, the Dow Jones Industrial Average stood at 36,027.37, up 113.53, or 0.32%.
Analysts predict that In a statement after tomorrow’s meeting The Fed will announce a $15 billion monthly QE cut starting in November. This will allow the Fed to end QE altogether by mid-2022.
The Fed has done at least $120 billion a month in QE. The Fed buys $80 billion per month in US government bonds. and buys mortgage-backed bonds (MBS) in the amount of 40 billion dollars/month
Wall Street stocks had previously plummeted in 2013 after Fed chairman Ben Bernanke at the time. Announcement to reduce the QE limit without sending a signal in advance causing investors to panic and sell their shares in the market
However, market trading is expected to go smoothly tomorrow. Although the Fed announced a cut in QE, Fed Chairman Jerome Powell learned from Bernanke’s mistakes. This led Mr Powell to signal the market over the past several months. To prepare investors for the withdrawal of the Fed’s special easing measures. The Fed will revert to normal monetary policy by ending QE measures, followed by a policy rate hike.
In addition, if the Fed can smoothly transition through monetary policy It will be a factor supporting Mr Powell’s re-appointment as Fed chairman. while President Joe Biden is considering the matter. before Mr Powell completes his four-year term in early 2022.
The share price of Pfizer, Inc., the largest US pharmaceutical company. It is up almost 4% in today’s trading. After the company announced an increase in sales forecasts for the vaccine against COVID-19. This year, it rose 7.5% to $36 billion, or about 1.2 trillion baht, from $335 billion, or about 1.1 trillion baht.
However, the adjustment of the sales forecast numbers has been made. After Pfizer was able to sign agreements with several countries to sell the booster vaccine. and as the public health authorities of various countries have approved Pfizer immunizations for children.
Now the vaccine against COVID-19 It has become one of Pfizer’s best-selling products in the company’s 172-year history.
However, according to the agreement made with Biotech. Pfizer will share the costs and profits from the vaccine in 50-50 proportions with Biotech.
Meanwhile, Tesla shares fell 2% in today’s trading. After Tesla Chief Executive Elon Musk admitted that The company has yet to sign an agreement with Hertz to sell 100,000 electric vehicles.
“I would like to reiterate that no contract has been signed yet. The deal with Hertz does not affect our financial situation,” Musk said.
Tesla’s share price jumped more than 10 percent on Oct. 25 after news that Hertz, the world’s largest car-leasing company, had been sold. It has ordered 100,000 Tesla electric vehicles, making it a company with a market capitalization of more than $1 trillion. as well as Apple, Amazon and Microsoft.
The order is the largest electric vehicle order ever. And it will bring Tesla to $4.4 billion.
Tesla’s share price has also been hit by the recall of nearly 12,000 vehicles it has sold in the United States since 2017 over a software issue that could cause the emergency braking system to malfunction.
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