The solid U.S. economic data made market participants worry that the Federal Reserve’s (Fed) tightening policy may last longer. U.S. stocks fell after midday on Thursday (22nd), but they pulled back in late trading but still closed lower.Dow JonesAfter falling 800 points in the intraday session, it closed nearly 350 points or 1.05% lower at the end of the session. The selling pressure of large technology stocks and semiconductor stocks emerged.That fingerDiving more than 2%,fee halfCrashed 4%. A sell-off in stocks boosted safe-haven buying and the dollar strengthened.
S&P 500 IndexIt fell 3% in midday trading and recovered some losses in late trading. Tesla (TSLA-US) shares plunged 8.88%, leading the decline in the consumer discretionary sector.Nasdaq The 100 index once fell 4% during the intraday session, heading for its biggest monthly drop in 20 years.
Micron (MU-US) dragged down by the pessimistic outlook,fee halfConstituents poured into one piece, Colin R&D (LRCX-US), materials (AMAT-US) and Huida (NVDA-US) and so on are facing heavy selling pressure.
December to present,Dow Jones Industrial AverageHas fallen 4.5%, the S & P 500 andThat fingerFalling 6.3% and 8.7% respectively, the three major indexes may break the record of three consecutive years of gains and record the worst annual performance since 2008.
The U.S. dollar rose as U.S. stocks slumped, and the yield on the two-year U.S. Treasury note, which is more sensitive to monetary policy, climbed to 4.27%. Oil prices snapped a three-day winning streak.
Economic data showed that the number of Americans filing for unemployment benefits last week remained close to record lows and a strong labor market continued to provide sufficient justification for the Fed to tighten policy. Elsewhere, U.S. gross domestic product (GDP) growth was revised up to 3.2 percent in the third quarter as spending picked up, while key inflation indicators rose slightly from the previous reading.
David Tepper, a heavyweight hedge fund manager and known as Wall Street’s “bottom hunter”, said in an interview that he is inclined to short stocks and bonds next year because he expects global central banks to take unprecedented tightening measures to calm inflation. Tepper’s bearish comments fueled market risk aversion.
Elsewhere, the Bank of Japan (BOJ) shifted to a more hawkish stance this week, drivingJPYThe rise in exchange rates and Japanese bond yields has sparked concerns about capital repatriation, which could further drive up global borrowing costs and drag on already cooling economic growth.
In terms of the epidemic, data from Johns Hopkins University in the United States shows that the number of confirmed cases worldwide has exceeded 655 million, and the number of deaths has exceeded 6.67 million. Some 13.1 billion doses of vaccines have been administered in 184 countries around the world.
On Thursday (22nd), the performance of the four major US stock indexes:
Focus stocks
The five kings of science and technology are black. apple (AAPL-US) down 2.38%; Meta Platforms (META-US) down 2.20%; Alphabet (GOOGL-US) down 2.03%; Amazon (AMZN-US) fell 3.43%; Microsoft (MSFT-US) down 2.55%.
Dow JonesComponent stocks generally fell. Boeing (BA-US) down 3.95%; Intel (INTC-US) fell 3.21%; Kintor Heavy Industry (CAT-US) down 1.73%; Chevron (CVX-US) fell 1.5%; Goldman Sachs (GS-US) down 1.31%; Walmart (WMT-US) fell 1.17%; JPMorgan Chase (JPM-US) down 1.14%; Verizon (VZ-US) up 1.4%; Nike (OF THE US) rose 0.8%.
fee halfConstituent stocks collectively fell to the ground. Colin R&D (LRCX-US) fell 8.65%; Applied Materials (AMAT-US) fell 7.84%; Huida (NVDA-US) down 7.04%; AMD (AMD-US) fell 5.64%; Asmol (ASML-US) down 4.30%; Micron (MU-US) fell 3.44%; Qualcomm (QCOM-US) down 3.41%.
Among the ADRs of Taiwan stocks, only Chunghwa Telecom is the only red one. TSMC ADR(TSM-US) fell 2.41%; ASE ADR (ASX-US) fell 2.30%; UMC ADR (UMC-US) fell 2.58%; Chunghwa Telecom ADR (CHT US) up 0.74%.
Corporate News
As the sell-off intensified, Tesla closed down 8.88% on Thursday, and has fallen 36% so far in December, and its single-month performance is expected to be the worst in history.
According to official website information, Tesla doubled the discount on Model 3 and Model Y delivered in the United States this month to $7,500, showing that the economic slowdown has put downward pressure on demand. The company had warned in October that it might miss its delivery target this year, with analysts pointing to rising interest rates and a sluggish economy that would dent demand.
U.S. airline stocks fell collectively, American Airlines (AAL-US) and Southwest Airlines (LUV-US) fell 3.61% and 3.11% respectively, Delta Air Lines (DAL-US) fell 2.23%, United Airlines (UAL-US) fell about 1.9%, as a massive snowstorm swept across the United States, resulting in the cancellation of more than 1,000 flights.
Car Max (KMX-US) closed down 3.66 percent. Due to weak demand making inventory hard to digest, the second-hand car dealer announced earlier that its profit in the last quarter plummeted by 86%, and both revenue and profit fell short of expectations. .
Self-driving truck Xinchuang Tucson Future (TSP-US) announced layoffs of 25%, affecting about 350 employees, and the news of the layoffs dragged down the share price by 11.27%.
Economic data
- The number of people claiming unemployment benefits in the United States reported 216,000 last week, compared with 220,000 expected and 214,000 previously
- U.S. Continuing Unemployment Claims Reported at 1.67M Last Week, from 1.68M Previously
- U.S. third-quarter GDP growth rate comes in at 3.2%, from 2.9% previously
Wall Street Analysis
Joe Gilbert, portfolio manager at Integrity Asset Management, said the economic data was even hotter than expected, so now the market has to face the Fed’s assertion that it will continue to aggressively raise interest rates. The odds are increasing every day, so there is risk aversion in the market.
“Today’s data tells us that consumer spending is stronger than the market thinks,” said Priya Misra, head of global rates strategy at TD Securities. It will slow down around the middle of next year.
In terms of inflation, as the labor market remains resilient, she believes that U.S. inflation will remain sticky during the decline, which will allow the Fed to continue to tighten policy. TD Securities predicts that the Fed will continue to raise interest rates until May next year, when the interest rate will reach 5.5%.
The numbers are all updated before the deadline, please refer to the actual quotation