The Federal Reserve (Fed) raised interest rates strongly, the degree of hawkishness exceeded expectations, the fear of economic recession deepened, the market was clouded, the dollar was still close to a record high, and the 10-year U.S. Treasury yield was hovering around 3.7%, the main U.S. stock market index on Thursday (22 Japan) opened low and fell into a trough during the session. Consumer discretionary and technology stocks were all over the place. The Dow Jones and S&P index suddenly pulled to a single-day high in late trading, but plunged rapidly in the last 10 minutes, and all the four major indexes closed. black.
The Dow Jones closed down more than 100 points, barely holding the 30,000-point mark, the S&P closed 0.84% in the black, the Nasdaq fell more than 1%, and the fee tumbled nearly 3%.
In terms of data, the adjusted number of Americans receiving unemployment benefits last week reported 213,000, which was lower than market expectations of 218,000, highlighting that the US labor market remains healthy for labor demand.
In terms of politics and economics, the “Super Central Bank Week” set off a frenzy of interest rate hikes on Thursday. Following the Federal Reserve’s 3-yard rate hike, the Swiss National Bank also raised its benchmark interest rate by 3 yards, leaving the negative interest rate policy again after 7 years.
The central banks of Norway, the United Kingdom and Indonesia announced to raise interest rates by 2 yards, South Africa followed the footsteps of the Federal Reserve to increase interest rates by 3 yards, Vietnam raised interest rates by 4 yards, Taiwan’s central bank raised interest rates by half, and Brazil’s central bank did not move, but Turkey bucked the trend and fell by 4 yards, following the 8th Two consecutive rate cuts after the month.
Fed Chair Powell acknowledged on Wednesday that a recession is possible and securing a soft landing will be very challenging, while Treasury Secretary Janet Yellen expressed confidence in the Fed on Thursday. “I believe there is a way to successfully lower inflation while maintaining a strong labor market, and I very much hope that the Fed will succeed,” she said.
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 613 million, and the number of deaths has exceeded 6.53 million. More than 12.7 billion vaccine doses have been administered in 184 countries worldwide.
Japanese Prime Minister Fumio Kishida announced that border control policies will be relaxed again on October 11, including opening up the free travel of overseas tourists and abolishing the single-day cap of 50,000 arrivals. Taiwan’s Chief Executive Su Zhenchang said: “0+7 independent epidemic prevention” is expected to hit the road on October 13. At the same time, it will also open visa-free countries to enter, and cancel the ban on tourism groups.
The performance of the four major U.S. stock indexes on Thursday (22nd):
The five kings of technology were mixed. Apple (AAPL-US) was down 0.64%; Meta (META-US) was up 0.49%; Alphabet (GOOGL-US) was up 0.87%; Amazon (AMZN-US) was down 1.04%; Microsoft (MSFT-US) was up 0.85% .
More than half of the Dow Jones components ended in the dark. American Express (AXP-US) fell 3.82%; Boeing (BA-US) fell 3.2%; Goldman Sachs (GS-US) fell 2.43%; Disney (DIS-US) fell 2.23%; Merck (MRK-US) rose 3.53% .
Fei and half of the constituent stocks were wiped out. Intel (INTC-US) fell 1.40%; Micron (MU-US) fell 0.88%; NVIDIA (NVDA-US) fell 5.28%; AMD (AMD-US) fell 6.69%; Applied Materials (AMAT-US) fell 2.35% ; Qualcomm (QCOM-US) fell 0.75%; Texas Instruments (TXN-US) fell 0.42%.
Taiwan stock ADR fell into one piece. TSMC ADR (TSM-US) fell 1.96%; ASE ADR (ASX-US) fell 0.91%; UMC ADR (UMC-US) fell 2.43%; Chunghwa Telecom ADR (CHT-US) fell 0.65%.
Apple (AAPL-US) fell 0.64% to $152.74 per share. Foxconn’s Shenzhen and Zhengzhou factories have just entered the peak season for the production of the iPhone 14 series. However, due to the pre-orders of the two standard iPhone 14 mobile phones not as expected, according to incomplete statistics, Zhengzhou Foxconn has at least 5 workshops that have dismantled or will dismantle production lines. Rarely do not work overtime during peak season.
Tesla (TSLA-US) fell 4.06% to $288.59 a share. Tesla is recalling nearly 1.1 million vehicles in the U.S. after its automatic window-reversing system failed to respond correctly when it detected obstacles, increasing the risk of injury,media reported.
Boeing (BA-US) closed 3.20 percent lower at $138.71 a share, with its shares edged up in after-hours trading. The U.S. Securities and Exchange Commission (SEC) announced after hours that Boeing agreed to pay $200 million to settle with the SEC over allegations that Boeing and its former CEO Dennis A. Muilenburg failed to properly disclose safety issues with its 737 Max.
FedEx (FDX-US) closed up 0.84% at $154.54 a share. FedEx, known as the “economic bellwether,” made a technical error Thursday and unexpectedly announced its latest earnings ahead of schedule. Adjusted earnings per share were $3.44 and revenue was $23.24 billion. For fiscal 2023, the company expects total cost savings of $2.2 billion to $2.7 billion.
- The number of Americans receiving unemployment benefits last week reported 213,000, expected 218,000, the previous value of 208,000
- The number of people receiving unemployment benefits in the United States reported 1.379 million last week, 1.4 million is expected, and the previous value was 1.401 million
- The monthly rate of the US leading index in August was -0.3%, expected -0.1%, the previous value – 0.5%
- U.S. September Kansas Fed composite manufacturing index reported 1, expected 5, the previous value of 3
- US September Kansas Fed manufacturing index reported 2, the previous value – 9
Wall Street Analysis
Evercore ISI equity and derivatives strategist Julian Emanuel cut his year-end target forecast for the S&P 500 to 3,975 from 4,200 and expects a full retest of June lows in the coming weeks.
Jonathan Krinsky, chief market technician at BTIG, said: “The bad news is that the stock market is still at its seasonally weakest point of the year, and the good news is that the stock market will reverse rapidly in mid-October, with expectations for a test or breakout of June before then. , which should provide a better entry point for a year-end rally.”
The figures are updated before the deadline, please refer to the actual quotation.