Home Business [US market conditions]S & P500 turns down at the end of the game, high-tech sales-Bloomberg

[US market conditions]S & P500 turns down at the end of the game, high-tech sales-Bloomberg

by news dir

In the US stock market on the 22nd, the S & P 500 stock index continued to fall. It echoed that technology stocks were sold significantly one hour before closing. US Treasuries are down. President Biden has reappointed Powell as the next chair of the Federal Reserve Board (FRB).

Powell re-elected as next Fed chair, Brainard as vice-chair

  • US stocks stalled at closing-Dow up and down as S & P continued to fall
  • US Treasuries fall, weak bids weigh on-10-year Treasury yield rises to 1.63%
  • Dollar rise, US Treasury yield rise-against yen in the upper 114 yen range
  • Observation that NY crude oil repulsion, OPEC plus will move to supply adjustment
  • NY Gold Futures Continue to Fall-Expanded Decline After Announcement of Chairman Powell’s Reappointment

S & P 500 species stalled at the end. Although it was rising during the day, it fell into the negative territory, pushed by the sale of technology stocks preferred by hedge funds. The high-tech Nasdaq 100 index is down 1.2%. Peloton Interactive and DocuSign have dropped significantly. The prices of baskets of software and internet companies that have not yet achieved profits, centered on Farfetch and Snowflake, have dropped by more than 5%.

Mike Zigmont, Head of Trading and Research at Harvest Volatility Management, said, “I don’t know why it collapsed late in the day, but stock prices have risen so far that it can’t be avoided at some point. No. This may be the beginning. “

The US swap market has fully factored in a 0.25 point rate hike at the Federal Open Market Committee (FOMC) in June next year, with a second rate hike expected in November next year.

S & P 500 species are 4682.94, down 0.3% from the previous weekend. The Dow Jones Industrial Average is up $ 17.27 (0.1%) to $ 35619.25. The Nasdaq Composite Index fell 1.3%. As of 4:35 pm New York time, 10-year bond yields rose 8 basis points (bp, 1bp = 0.01%) to 1.63%.

David Donavedian, Chief Investment Officer of CIBC Private Wealth Management, said of Powell’s re-nomination, “The bottom line is that nothing will change. The issues Powell should address are the same. So is their view that rising inflation will be transient, and if not, what will they do about it? ” “The choice to reappoint Mr. Powell means continuity,” he said.

What’s Priced In Now

Fed rate hike premium is added after Powell confirmed as next Fed Chair

Bloomberg

In the foreign exchange market, the dollar index was at its highest level since September last year. The background is that US Treasury yields have risen following the reappointment of Mr. Powell. Demand for US 5-year bond auctions was lower than expected, which also contributed to the sale of refuge currencies other than the dollar.

Mike Schumacher and colleagues at Wells Fargo Securities said, “The US dollar has risen extensively following the announcement, but the yen has fallen sharply. The direction of these market trends is intuitive, as we expected. The market will settle in a day or two, “he said in a report.

As of 4:36 pm New York time, the Bloomberg Dollar Spot Index, which shows the movement of the dollar against the 10 major currencies, rose 0.5%. The dollar is up 0.8% against the yen to 1 dollar = 114.89 yen. The euro is down 0.5% against the dollar at 1 euro = 1.1236 dollars.

New York crude oil futures market rebounded. If the United States and other consuming countries cooperate in the release of strategic petroleum reserves (SPR), OPEC Plus, which consists of the Organization of Petroleum Exporting Countries (OPEC) and major non-OPEC oil-producing countries, may not increase supply as much as previously planned. The observation spread.

OPEC Plus warns, probable to respond to the release of stockpiles in consuming countries

The January contract for West Texas Intermediate (WTI) futures on the New York Mercantile Exchange (NYMEX) ends at $ 76.75 a barrel, up 81 cents (1.1%) from the previous weekend. The January contract for Brent North Sea in London ICE is up 81 cents to $ 79.70.

NY gold futures have fallen sharply. After the announcement of the re-nomination of Chair Powell, the rate of decline widened in response to rising dollar and US Treasury yields. The February contract for gold futures on the New York Board of Trade (COMEX) ended at $ 1809.10, down 2.4% from the previous weekend.

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