On Monday (24th) Wall Street was worried that the war between Russia and Ukraine might be imminent, and funds turned to safe-haven assets. The US dollar and gold rose, oil prices fell, the panic index VIX hit a high of 38.94, and the Dow Jones was bloodbathed by more than 1,000 points. collapsed by more than 4%.
In late trading, investors bought heavily injured technology stocks on dips, Meta, Amazon and Microsoft turned red, consumer discretionary and energy stocks rebounded, the four major indexes changed color, and the Dow regained lost ground and rose nearly 100 points. The index closed in the red 0.63%, and the S&P rose 0.28%, ending a four-day losing streak.
In geopolitical news, despite Russian President Vladimir Putin denying plans to invade Ukraine, British Prime Minister Johnson said on Monday that the current intelligence was rather gloomy. U.S. President Biden held a conference call with European leaders including France, Germany, Italy and Britain, and is considering sending additional U.S. military support to NATO allies in the Baltic Sea and Eastern Europe.
Political and economic news, in response to the intraday plunge in U.S. stocks, White House press secretary Jen Psaki said that, unlike his predecessors, President Biden does not view the stock market as a means of judging the economy, and the White House focuses on economic trends, not any day and any one. single indicator.
Wall Street is looking ahead to the Federal Reserve’s two-day meeting on interest rate policy starting Tuesday, where markets are expected to further reveal its plans to combat soaring inflation.
Before the deadline, according to data from Johns Hopkins University in the United States, the number of confirmed cases worldwide has exceeded 353 million, and the number of deaths has exceeded 5.6 million. More than 9.94 billion doses of vaccines have been administered in 184 countries worldwide.
World Health Organization (WHO) Secretary-General Tedros Adhanom Ghebreyesus warned that the current global conditions are ideal for more new coronavirus variants to emerge, and it is dangerous to assume that the global epidemic is coming to an end.
The performance of the four major U.S. stock indexes on Monday (24th):
- The Dow Jones Industrial Average rose 99.13 points, or 0.29%, to close at 34,364.5 points.
- The Nasdaq added 86.21 points, or 0.63%, to 13,855.13.
- The S&P 500 gained 12.19 points, or 0.28%, to 4,410.13.
- The Philadelphia Semiconductor Index rose 45.2 points, or 1.31 percent, to 3,479.9.
The five kings of science and technology are only Apple’s black. Apple (AAPL-US) was down 0.49%; Meta (formerly Facebook) (FB-US) was up 1.83%; Alphabet (GOOGL-US) was up 0.35%; Amazon (AMZN-US) was up 1.33%; Microsoft (MSFT-US) was up 1.33% ) rose 0.11%.
Dow Jones components ended up in the red. Home Depot (HD-US) was up 4.21%; Traveler (TRV-US) was up 3.83%; Nike (NKE-US) was up 2.13%; Visa (V-US) was down 1.98%; Merck (MRK-US) was down 1.44% .
Fei half constituents were mixed. Applied Materials (AMAT-US) rose 3.13%; AMD (AMD-US) fell 1.92%; NVIDIA (NVDA-US) fell 0.0086%; Intel (INTC-US) fell 0.19%; Micron (MU-US) rose 1.24% ; Qualcomm (QCOM-US) rose 3.12%.
Taiwan stock ADR is only weaker than Chunghwa Telecom. TSMC ADR (TSM-US) rose 1.15%; ASE ADR (ASX-US) rose 0.56%; UMC ADR (UMC-US) rose 0.28%; Chunghwa Telecom ADR (CHT-US) fell 0.52%.
Facebook parent Meta (FB-US) rose 1.83% to $308.71 a share. Meta said the company’s research team is building a new artificial intelligence (AI) supercomputer that is expected to be the world’s fastest AI supercomputer when it is completed in mid-2022.
Apple (AAPL-US) fell 0.49% to $161.62 per share. Ericsson’s lawsuit against Apple for patent infringement has expanded. In addition to the United States, Ericsson has applied for restraining orders in Germany, Brazil and the Netherlands, and will follow suit in other European countries such as the United Kingdom.
General Motors (GM-US) fell 1.22% to $52.64 per share. Ultium Cells, a joint venture between General Motors and LG Energy Solutions, will announce on Tuesday that it will invest more than $6.5 billion in a new electric truck and battery plant in Michigan and create up to 4,000 new jobs at the two plants.
- U.S. January Markit manufacturing PMI initial value was 55.0, expected 57, the previous value was 57.7
- U.S. January Markit services PMI initial value was 50.9, expected 54.9, the previous value was 57.6
Wall Street Analysis
JPMorgan equity strategist Marko Kolanovic said the sell-off in equities was overblown, with the recent correction in risk assets appearing to be overdone, with technical indicators near oversold territory and bearish sentiment suggesting that the current pullback may be in its final stages, although the market struggles to digest a rate hike. There has been a rotation of stocks coming, but earnings season is expected to restore confidence.
JoAnne Feeney, a partner at Advisors Capital Management, said: “There’s definitely a lot to do this week, and market behavior and near-term risks are really testing the mettle of long-term investors.”
Ted Smith, president of financial advisory firm Union Square Advisors, said all of the market volatility presents challenges, although the focus is now on getting through the Fed’s decision-making changes and the latest earnings season.
Smith revealed that most tech executives are quite optimistic about their companies’ mid- to long-term prospects, but they also acknowledged that the stock market challenge will bring some jolts, at least in the short term.
(The figures are updated before the deadline, please refer to the actual quotation)