After digesting information about the Omicron epidemic and related research information, US stocks were mixed on Monday (6th), and technology stocks and chip stocks generally performed poorly at the opening. Before the deadline, the Dow Jones Industrial Average rose more than 300 points or nearly 1%, the Nasdaq Composite Index fell 0.45%, the S&P 500 Index rose 0.4%, and the Philadelphia Semiconductor Index fell nearly 2%. Huida fell more than 5%
Except for Intel (INTC-US), the half-fee constituent stocks fell across the board. Huida (NVDA-US) fell more than 5%, AMD (AMD-US) fell 4.5%, and Qualcomm (QCOM-US) fell 1%. The US Federal Trade Commission (FTC) announced last week that it filed a lawsuit against Huida’s acquisition of ARM.
Most of the large technology stocks fell. Amazon (AMZN-US) fell 1.3%, Alphabet (GOOGL-US) fell 1%, Microsoft (MSFT-US) fell 0.9%, and Apple (AAPL-US) and Meta (FB-US) bucked the trend, respectively. Rose more than 2% and more than 1%.
On the news of the epidemic, as of Sunday (5th), there have been confirmed cases of Omicron in about 16 states in the United States. However, Anthony Fauci, the Chief Medical Adviser of the White House, still downplays the severity of the situation and believes that although Omicron is spreading rapidly, it has been infected. Most people affected by the epidemic are mildly ill, and the current situation so far is exciting.
A small study from South Africa also pointed out that compared with previous rounds of epidemics, Omicron caused milder symptoms, and preliminary signs showed that its risk was not as high as Delta virus, but more information is needed to determine the exact danger of Omicron sex.
Before the deadline, the 10-year U.S. Treasury yield rose to 1.38%, and the U.S. dollar rose slightly.
In other asset news, international oil prices rose on Monday. Brent crude oil futures and WTI crude oil futures both rose more than 2%. Saudi Arabia recently announced an increase in official crude oil prices sold to Asia and the United States.
Following the plunge of 20% last weekend, Bitcoin fell by 2% before the deadline on Monday, dragging down blockchain concept stocks. Marathon Digital Holdings (MARA-US) fell 8.7% and Riot Blockchain (RIOT-US) fell 8.5%. Cryptocurrency exchange Coinbase (COIN-US) also fell 4.6%.
As of Monday (6th) 22:00, Taipei time:
- The Dow Jones Industrial Average rose 421.19 points, or 1.22%, to 35001.27 points temporarily
- The Nasdaq Composite Index fell 67.97 points, or -0.45%, to 15015.04 points temporarily
- The S&P 500 Index rose 19.84 points, or 0.44%, temporarily at 4558.27 points
- Fees and a half fell by 74.34 points or -1.95%, temporarily at 3730.19 points
- TSMC’s ADR fell 1.47% to US$117.57 per share
- 10-year U.S. Treasury yield rises to 1.38%
- New York light crude oil rose 2.41% to US$67.86 per barrel
- Brent crude oil rose 2.38% to $71.54 per barrel
- Gold fell 0.23% to US$1,779.80 per ounce
- The dollar index rose to 96.130
Spotlight stocks:
Huida (NVDA-US) fell 5.84% in early trading to US$289.00.
The US Federal Trade Commission (FTC) announced that it will file an administrative lawsuit to try to block Huida’s acquisition of ARM. The FTC believes that the merger will enhance Huida’s ability in chip design technology, while stifling innovation and hindering market competition.
Lucid Group (LCID-US) fell 12.52% in early trading to $41.35.
Lucid stated that it has received a subpoena from the US Securities and Exchange Commission (SEC) requesting documents related to the SPAC M&A transaction. Lucid merged with Churchill Capital Corp. IV through SPAC in July this year.
Alibaba (BABA-US) rose 1.47% to US$113.63 in early trading.
Alibaba announced on Monday that its two new departments, “China Digital Commerce” and “Overseas Digital Commerce”, the current chief financial officer Wu Wei will step down on March 31, and the current deputy chief financial officer Xu Hong will take over.
Today’s key economic data:
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Wall Street analysis:
Capital Economics analyst Jonathan Petersen said that although the non-agricultural report last month was mixed, he believes that the continued inflationary pressure in the United States will continue to support the Fed in accelerating its return to policy normalization.
Morgan Stanley (Morgan Stanley) strategists believe that the Omicron variant is unlikely to be the main risk facing the stock market, but after Fed Chairman Ball hinted that it may accelerate the pace of reducing debt purchases, US stocks may see upward resistance.
