Ukraine-Russia truce hopes fade, chip stocks fall more than 3% | Anue Juheng

Russia changed its tune on Wednesday (30th) to say that there has been no breakthrough in Ukraine-Russia talks, hopes for a truce between the two countries have faded, and investors want to take profits, even if energy stocks rebounded with oil prices, consumer discretionary, technology and chips Under the heavy slump in stocks, the four major indexes were all wiped out at the end. The S&P fell 0.63%, ending the fourth consecutive trading day in the red. daily rally.

In terms of political and economic news, after Ukraine and Russia concluded the fifth round of negotiations on Tuesday, the Russian side was optimistic that the negotiations were very constructive and hinted that the leaders of the two countries would meet. See breakthrough progress.

As the war between Ukraine and Russia remains unclear and inflation remains high, the 2-year and 10-year U.S. bond yield curves briefly inverted on Tuesday, the bond market’s biggest economic recession alarm bell sounded, and continued worries about economic recession weighed on market sentiment. Richmond Federal Reserve Bank President Thomas Barkin said on Wednesday he was open to a 2-yard rate hike at the May rate policy meeting, depending on the strength of the U.S. economy.

In addition, it is rumored that U.S. President Biden plans to use the “Defense Production Act” to promote the production of key minerals needed for electric vehicles and other types of batteries. The Biden administration is understood to have added minerals such as lithium, nickel, graphite, cobalt and manganese to the list to help mining companies secure $750 million in funding.

The global epidemic of new coronary pneumonia (COVID-19) continues to spread. Before the deadline, data from Johns Hopkins University in the United States pointed out that the number of confirmed cases worldwide has exceeded 4.86, and the number of deaths has exceeded 6.13 million. More than 7.38 billion doses of vaccines have been administered in 184 countries worldwide.

The performance of the four major U.S. stock indexes on Wednesday (30th):

• The Dow Jones Industrial Average fell 65.38 points, or 0.19%, to 35,228.81.
• The Nasdaq lost 177.36 points, or 1.21 percent, to end at 14,442.28.
• The S&P 500 lost 29.15 points, or 0.63%, to end at 4,602.45.
• The Philadelphia Semiconductor Index fell 117.00 points, or 3.23%, to 3508.60.

Focus stocks

The five tech giants ended bleakly lower. Apple (AAPL-US) fell 0.66%; Meta (formerly Facebook) (FB-US) fell 0.87%; Alphabet (GOOGL-US) fell 0.40%; Amazon (AMZN-US) fell 1.78%; Microsoft (MSFT-US) ) fell 0.49%.

More than half of the Dow Jones components were down. Home Depot (HD-US) fell 2.91%; Salesforce (CRM-US) fell 2.87%; Visa (V-US) fell 1.83%; Goldman Sachs (GS-US) fell 1.2%; UnitedHealth (UNH-US) rose 1.98% ; Walmart (WMT-US) rose 1.79%.

Fei half of the constituent stocks were stained with blood. AMD (AMD-US) fell 3.25%; NVIDIA (NVDA-US) fell 3.37%; Intel (INTC-US) fell 1.57%; Applied Materials (AMAT-US) fell 3.99%; Micron (MU-US) fell 3.52% ; Qualcomm (QCOM-US) fell 5.18%.

Taiwan stock ADRs are all black. TSMC ADR (TSM-US) fell 2.29%; ASE ADR (ASX-US) fell 2.68%; UMC ADR (UMC-US) fell 1.88%; Chunghwa Telecom ADR (CHT-US) fell 0.29%.

Corporate News

Fearless of supply chain disruption and Omicron’s new variant of the virus challenge, Lululemon’s latest financial report was bright, its financial forecast was better than market expectations, and the board of directors also approved a new stock repurchase plan of up to 1 billion US dollars. Lululemon (LULU-US) shares surged 9.58% to $376.92 a share on Wednesday.

Tesla (TSLA-US) fell 0.51% to $1,093.99 a share. Foreign media reported that Tesla has reached an undisclosed supply agreement with Brazilian miner Vale SA to supply nickel, a very important raw material for making electric vehicle batteries. Analysts at Morgan Stanley predict that Tesla has a five- to ten-year lead over its peers in securing supplies of key ingredients.

Boeing (BA-US) , one of China’s top three airlines, plans to receive 103 new Boeing 737s by the end of 2024, while Boeing expects to deliver 39 this year, after news broke mid-day Wednesday. Reversing early losses, it closed up 0.59% at $194.91 a share.

The U.S. Securities and Exchange Commission (SEC) on Wednesday added Baidu, iQiyi, Futu Securities, Nocera and CASI Kaixin Yuanda to a list of Chinese companies at risk of delisting as China refuses to review U.S. audits of Chinese companies listed in the U.S. . Baidu ADR (BIDU-US) fell 2.61%, Futu Securities (FUTU-US) fell 2.86%, and iQiyi ADR (IQ-US) edged up 0.40%.

Economic data

• US March ADP payrolls reported 455,000, expected 450,000, the previous value of 475,000
• The final quarterly annual growth rate of U.S. Q4 GDP was 6.9%, expected 7.1%, and the previous value was 7%
• U.S. Q4 consumer spending quarterly growth rate finalized at 2.5%, expected 3.1%, and the previous value of 3.1%
• The final quarterly growth rate of the US Q4 core PCE price index was reported at 5%, the previous value was 5%, and the expected 5%

Wall Street Analysis

Ross Mayfield, an investment strategist at Baird, commented that the market sentiment was affected by the situation in Ukraine and Russia and the short-term inversion of yield rates, and the stock market on Wednesday seemed to pause rather than turn down.

Chris Senyek, chief investment strategist at Wolfe Research, said that typically, an inverted 2-year and 10-year U.S. Treasury yield curve is a strong indicator that the next recession is imminent.

Troy Gayeski, chief market strategist at FS Investments, believes that in the current environment, the Fed’s actions are more difficult to predict. They have learned from 18 years and will act very carefully on the balance sheet. It is expected to be a choppy, A chaotic year.

The figures are updated before the deadline, please refer to the actual quotation.