Technology Stocks Lead Surge as US Stock Indexes Rise
In a positive start to the week, technology stocks led the surge, resulting in gains for the four main US stock indexes on Monday (11th). The Dow Jones rose nearly 100 points, while the Nasdaq closed more than 1% lower.
Optimism surrounds Tesla’s Dojo supercomputer, with Morgan Stanley raising Tesla’s target price to $400 per share. As a result, Tesla’s stock price soared by over 10%. This development is expected to bolster the popularity of self-driving taxis and the software services associated with it, increasing Tesla’s market value by 76% or approximately $600 billion.
The upcoming annual autumn conference of Apple has generated excitement in the market. Qualcomm announced a three-year agreement with Apple, supplying iPhone 5G chips until 2026. Both company’s stock prices rose in response to this news.
In terms of the political and economic landscape, the Wall Street Journal reported that the Federal Reserve has reached a consensus to keep interest rates unchanged at its next meeting. This boosted market sentiment and resulted in traders expecting the Fed to remain on hold in September. However, there is a 40% probability of interest rates being raised in November.
Investors are eagerly awaiting key US inflation data, with the latest consumer price index due on Wednesday and the latest producer price index on Thursday. Stronger than expected economic data from last week has raised concerns about the Federal Reserve potentially raising interest rates to a greater extent than anticipated.
Furthermore, Goldman Sachs has suggested that investors are monitoring the next set of inflation data ahead of the Federal Reserve meeting. The market is expecting a soft landing for the economy, and improvements in inflation data coupled with signs of weakness in the labor market have led Goldman Sachs economists to reduce their estimated probability of a US recession over the next 12 months to 15% from 20%.
In light of these developments, JP Morgan Chase CEO Jamie Dimon expressed caution about the future of the US economy. He highlighted concerns regarding central banks transitioning from quantitative easing to liquidity management, the Russian-Ukrainian war, and excessive government spending worldwide.
A New York Fed survey revealed that while inflation expectations among US consumers remained relatively stable in August, their views on current credit and future economic conditions worsened. Additionally, they displayed increased pessimism about the job market.
The market is also paying close attention to the European Central Bank’s interest rate decision on September 14. There is a 40% probability of the European Central Bank raising interest rates from 1% to 4.00%, but economists find it difficult to predict whether the interest rate hike will occur this time.
Stock Performance Highlights
On Monday (11th), the five prominent technology companies experienced positive movements. Meta saw a rise of 3.25%, Apple increased by 0.66%, Alphabet grew by 0.40%, Microsoft recorded a 1.10% gain, and Amazon surged by 3.52%.
Dow Jones stocks displayed mixed results with notable shifts. Walgreens Alliance Boots fell 2.55%, Chevron declined by 2.06%, 3M rose by 1.55%, Intel increased by 1.53%, and Verizon Communications experienced a 1.46% rise.
Among Feiban stocks, Qualcomm led the gains, rising by 3.90%. Nvidia fell by 0.86%, Micron dropped by 0.21%, Applied Materials declined by 0.56%, AMD experienced a 0.73% decrease, and Texas Instruments recorded a 0.72% increase.
Taiwan stock ADRs had varying performance levels. TSMC ADR fell by 0.04%, ASE ADR declined by 1.91%, United Microelectronics ADR rose by 1.13%, and Chunghwa Telecom ADR experienced a 0.78% increase.
Corporate News
Tesla’s stock price had an impressive one-day performance, rising by 10.09% to $273.58 per share. This increase followed the commencement of production for Tesla’s Dojo supercomputer, which is vital for training artificial intelligence models for self-driving cars. Tesla aims to invest over $1 billion in the Dojo supercomputer by next year, with market analysts predicting that it will significantly boost the company’s market value by approximately $600 billion.
Apple’s stock price rose by 0.66% to $179.36 per share. Apple is set to release its new flagship series, iPhone 15, with Wedbush estimating that about 25% of Apple’s user base, consisting of 1.2 billion users, has yet to upgrade their iPhones in the past four years. The company aims to leverage its autumn event to increase the prices of the iPhone 15 Pro/Pro Max models, thereby initiating a new mini-super cycle.
Qualcomm’s stock price experienced a significant increase of 3.90% to $110.28 per share. The company announced a new agreement with Apple, extending the supply of 5G chips to Apple for three more years until 2026. This development signals that Apple is taking longer than expected to design its own chips.
Nvidia’s stock price declined by 0.86% to $451.78 per share. Industry analysts highlighted the difficulty of breaking into the artificial intelligence chip manufacturing market, exemplified by Nvidia’s dominance. This circumstance has led to a decrease in investment in start-ups, with this quarter’s US transaction volume falling by 80% compared to a year ago.
Disney’s stock price increased by 1.15% to $82.52 per share, while Cable Charter closed 3.18% higher at $435.84 per share. The agreement reached between Disney and Charter ended a week-long gap, allowing Charter’s nearly 15 million subscribers access to popular channels such as ESPN and ABC. Consequently, Paramount, Warner Bros., Discovery, and other media stocks experienced a boost.
Wall Street Analysis
Morgan Stanley’s chief US stock strategist, Mike Wilson, warned that the stock market has yet to account for the risk of an economic recession, despite previously predicting a sharp decline in US stocks in 2022. He advised investors to focus on defensive stocks, industrial stocks, and energy stock portfolios.
Huw Roberts, the head of analysis at Quant Insight, acknowledged the momentum supporting a soft landing scenario, backed by data published over several months. However, lingering fears remain, and though peak interest rates might be approaching, it does not imply that the Federal Reserve’s long-term vision of rate hikes will be abandoned.
Please note that all figures are based on pre-closing data and are subject to change. Please refer to the actual quotes for the most up-to-date information.
Technology stocks led the surge, and the four main US stock indexes rose on Monday (11th), the Dow Jones rose almost 100 points, and the Nasdaq closed more than 1% lower.
Morgan Stanley is optimistic about the prospects of Tesla’s Dojo supercomputer and raised Tesla’s target price to US$400 per share, pushing its stock price to soar by more than 10%.
Apple’s annual autumn conference is about to take place. Qualcomm announced that it had completed a three-year agreement with Apple to supply iPhone 5G chips until 2026. The stock prices of both companies rose.
On the political and economic front, the Wall Street Journal reported on Sunday (10th) that the Federal Reserve has reached a consensus that it will not raise interest rates at next week’s meeting, boosting market sentiment. According to CME FedWatch, traders expect the Fed to remain on hold in September, while the probability of raising interest rates in November is around 40%.
Investors await key US inflation data in the coming week, with the latest consumer price index due on Wednesday and the latest producer price index on Thursday. A series of stronger than expected economic data last week once again raised concerns that the Federal Reserve could raise interest rates more than expected.
Goldman Sachs said, ahead of this month’s Federal Reserve meeting, that investors are waiting for the next batch of inflation data, and the market has priced in a soft landing for the economy. The combination of good inflation data and signs of weakness in the labor market led Goldman Sachs economists this week to cut their estimated probability of a US recession over the next 12 months to 15% from 20%.
JPMorgan Chase CEO Jamie Dimon said Monday that while the U.S. economy is doing well, “it would be a huge mistake to believe that this will continue for many years.” The issues that worry him the most include central banks passing quantitative easing to management. liquidity schemes, Russian-Ukrainian war and governments around the world spending like drunken sailors.
Inflation expectations among US consumers were fairly stable in August, but views on current credit and expectations for future conditions have worsened, and they have become more pessimistic about the job market, a New York Fed survey showed today Photo.
The market is also paying attention to the European Central Bank’s interest rate decision on September 14. The possibility of the European Central Bank raising interest rates from 1% to 4.00% is expected to be around 40%, but economists say it is difficult predict whether the interest rate will be raised this time.
The performance of the four major US stock indexes on Monday (11th): (Nine of the 11 major S&P sectors closed in the red, with consumer discretionary, communications services and consumer staples leading the gains, while two major sectors, energy and industrial, (Photo: finviz) Focus stocks
Together the five kings of science and technology moved higher. Meta (META-US) rose 3.25%; Apple (AAPL-US) rose 0.66%; Alphabet (GOOGL-US) rose 0.40%; Microsoft (MSFT-US) rose 1.10%; Amazon (AMZN-US) rose 3.52%.
Dow Jones stocks were mixed. Walgreens Alliance Boots (WBA-US) fell 2.55%; Chevron (CVX-US) fell 2.06%; 3M (MMM-US) rose 1.55%; Intel (INTC-US) rose 1.53%; Verizon Communications (VZ-US) rose 1.46%.
Qualcomm led the gains among Feiban stocks. Qualcomm (QCOM-US) rose 3.90%; Nvidia (NVDA-US) fell 0.86%; Micron (MU-US) fell 0.21%; Applied Materials (AMAT-US) fell 0.56%; AMD (AMD-US) fell 0.73%; Texas Instruments (TXN-US) rose 0.72%.
Taiwan stock ADRs have waxed and waned. TSMC ADR (TSM-US) fell 0.04%; ASE ADR (ASX-US) fell 1.91%; United Microelectronics ADR (UMC-US) rose 1.13%; Chunghwa Telecom ADR (CHT-US) rose 0.78%.
Corporate News
Tesla ( TSLA-US ) rose 10.09% to $273.58 a share, its best one-day performance since January.
Tesla began production of a supercomputer used to train artificial intelligence (AI) models for self-driving cars in July this year, and plans to invest more than $1 billion in the Dojo supercomputer by next year. Morgan Stanley analysts said Tesla’s Dojo will promote the popularity of self-driving taxis (robotaxis) and their software services, which are expected to increase Tesla’s market value by nearly US$600 billion, or 76%.
Apple ( AAPL-US ) rose 0.66% to $179.36 a share. Apple will release its new flagship series iPhone 15 at 1 am on September 13, Taiwan time Apple bull Wedbush estimates that about 25% of Apple’s 1.2 billion user base has not upgraded their iPhones in four years. Apple will use this autumn to launch an event as an opportunity to increase the price of the iPhone 15 Pro / Pro Max models, thereby starting a new mini-super cycle.
Qualcomm (QCOM-US) rose 3.90% to $110.28 a share. Qualcomm announced on Monday that it has signed a new agreement with Apple to extend the supply of 5G chips to Apple for three years until 2026. The move shows that Apple is taking longer than expected to design its chips. himself
NVDA (NVDA-US) fell 0.86% to $451.78 a share. Analysts pointed out that Huida’s dominance in artificial intelligence (AI) chip manufacturing fully illustrates the difficulty of breaking into this market, which has prompted a drop in investment in start-ups. US transaction volume this quarter fell 80% from a year ago.
Disney ( DIS-US ) rose 1.15% to $82.52 a share. Cable Charter ( CHTR-US ) closed 3.18% higher at $435.84 a share. Disney and Charter reached an agreement to restore popular channels including ESPN and ABC to Charter’s nearly 15 million subscribers, ending a gap of more than a week, giving Paramount ( PARA-US ) and Warner Bros. a boost. Discovery (WBD-US) and other media stocks concept buying momentum.
Wall Street Analysis
Mike Wilson, chief US stock strategist at Morgan Stanley, who once predicted a sharp decline in US stocks in 2022, recently warned that the stock market has yet to reflect the risk of an economic recession. , investors should pay attention to defensive stocks, industrial stocks and energy stock portfolios.
Huw Roberts, head of analysis at Quant Insight, said: “It’s fair to say that this momentum deserves a soft landing camp, which has already been proven if you look at the data we’ve published over several months. But the lingering fear has not gone. It’s not gone, and while we may be close to peak interest rates, that doesn’t necessarily mean the Fed’s long-term version of rate hikes is gone.”
All figures are updated before the closing date, please refer to the actual quote.
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