Federal Reserve Chairman Powell has a firm hawkish stance, and the latest data exacerbates fears of a recession. U.S. stocks opened mixed on Thursday (23rd), U.S. bond yields fell, and energy stocks were under pressure. U.S. stocks turned dark in midday trading. Fortunately, many parties rescued in late trading, and technology stocks counterattacked strongly. The three major indexes closed in the red, and the Dow Jones rose by nearly 200 points.
Fed Chairman Powell went to the House Financial Services Committee on Thursday to take a firm hawkish stance, emphasizing that the Fed’s commitment to reducing inflation was “unconditional”, sending a signal of continued aggressive interest rate hikes and reiterating that the U.S. economy can cope with larger Despite the rate hike, it is estimated that the economic growth rate in the second half of this year should still be quite strong.
Fed Governor Michelle Bowman also delivered a hawkish message on Thursday, saying inflation posed a threat to continued job growth and backing a 3-yard rate hike by the Fed in July.
The latest data on initial jobless claims last week remained at a five-week high, and U.S. manufacturing and service sector activity cooled in June, adding to fears of a recession triggered by a rate hike by the Federal Reserve. Following Goldman Sachs and Citigroup, UBS raised the probability of a recession to 69%, becoming the latest investment bank to forecast a U.S. recession next year.
The Federal Reserve released the results of its stress test on Thursday. All 34 participating banks passed the stress test. The results showed that in the case of a severe economic recession in the world, the bank industry will suffer a total loss of more than 612 billion US dollars, but there is enough capital to maintain lending and resist. Severe recession, banks are expected to announce their actual dividend and treasury stock plans next Monday.
The new crown pneumonia (COVID-19) epidemic continues to spread around the world. Before the deadline, data from Johns Hopkins University in the United States pointed out that the number of confirmed cases worldwide has exceeded 541 million, and the number of deaths has exceeded 6.32 million. More than 12 billion doses of vaccines have been administered in 184 countries worldwide.
The performance of the four major U.S. stock indexes on Thursday (23rd):
- The Dow Jones Industrial Average rose 194.23 points, or 0.64%, to end at 30,677.36.
- The Nasdaq added 179.11 points, or 1.62 percent, to 11,232.19.
- The S&P 500 gained 35.84 points, or 0.95%, to 3,795.73.
- The Philadelphia semiconductor index lost 17.0 points, or 0.65%, to end at 2,602.7.
The five kings of science and technology have climbed up in an all-round way. Apple (AAPL-US) was up 2.16%; Meta (META-US) was up 1.86%; Alphabet (GOOGL-US) was up 0.68%; Amazon (AMZN-US) was up 3.20%; and Microsoft (MSFT-US) was up 2.26%.
The Dow Jones components rose more or less. Salesforce (CRM-US) was up 3.34%; Merck (MRK-US) was up 3.19%; Nike (NKE-US) was up 2.94%; Pioneering Heavy Industries (CAT-US) was down 4.88%; Chevron (CVX-US) was down 3.68%.
More than half of the half-constituent stocks closed in the black. AMD (AMD-US) fell 1.58%; NVIDIA (NVDA-US) fell 0.83%; Applied Materials (AMAT-US) fell 0.70%; Micron (MU-US) fell 0.21%; Texas Instruments (TXN-US) fell 0.96 %; Qualcomm (QCOM-US) fell 1.69%.
Taiwan stock ADR only Chunghwa Telecom received red. TSMC ADR (TSM-US) fell 0.93%; ASE ADR (ASX-US) fell 1.24%; UMC ADR (UMC-US) fell 4.70%; Chunghwa Telecom ADR (CHT-US) rose 1.03%.
Tesla (TSLA-US) fell 0.43% to $705.21 a share on Thursday. Tesla will suspend production in the first two weeks of July and carry out plant upgrades. The goal is to reach a new high in production capacity by the end of July, and further move towards the goal of producing 22,000 vehicles per week.
NIO ADR (NIO-US) rose 2.22%. Xiaopeng (XPEV-US) rose 7.01%. Electric vehicle sales could account for 33 percent of global new vehicle sales in 2028 and 54 percent in 2035, as demand accelerates in most major markets, U.S. consultancy AlixPartners said in its auto industry outlook briefing on Wednesday.
Toy maker Funko (FNKO-US) soared 12.67% to $23.66 a share. Analysts at JPMorgan Chase called the toy industry a safe haven in the current market, and upgraded Funko shares to “overweight.”
Occidental Petroleum (OXY-US) rose 0.59% to $56.09 a share. Berkshire Hathaway, run by “stock god” Buffett, has continued to increase its purchases of Occidental Oil since last Friday, and its stake this week increased to 16.3%.
Network equipment maker Cisco Systems (CSCO-US) fell 1.47% to $42.93 a share. Cisco will gradually close its business in Russia and Belarus, following the accelerated withdrawal of other Western companies. Cisco had previously suspended business operations in the region, including sales and services, in March.
- The number of people receiving unemployment benefits last week was 229,000, expected to be 227,000, and the previous value of 231,000
- Last week, the number of people receiving unemployment benefits reported 1.315 million, 1.315 million is expected, and the previous value was 1.31 million
- U.S. June Markit manufacturing PMI initial value was 52.4, expected 56, the previous value was 57
- U.S. June Markit services PMI initial value was 51.6, expected 53.5, the previous value was 53.4
- U.S. June Markit Composite PMI preliminary value was 51.2, the previous value was 53.6
- US Q1 Current Account – $291.4 billion, expected – $273.5 billion, prior – $217.9 billion
Wall Street Analysis
With Fed Chairman Powell finally acknowledging how difficult it will be to achieve a soft landing for the economy and that the Fed’s pledge to curb inflation could lead to a recession, markets are between a growth panic and a full-blown recession, said Quincy Krosby, equity strategist at LPL Financial. indecisive.
Quincy Krosby, equity strategist at LPL Financial, said second-quarter earnings will clarify the direction of the market, which is waiting for signs of flattening inflation in order to assess the Fed’s response and how companies are managing against the backdrop of a slowing economy. .
The figures are updated before the deadline, please refer to the actual quotation.