Several Federal Reserve officials continued to issue hawkish remarks on Friday (9th), and U.S. bond yields climbed, but due to the hot pre-orders of Apple’s new machine, the technology stock bulls continued to advance, coupled with the strong leadership of communication services and energy stocks. rose, the four major indexes all closed higher,Dow JonesUp nearly 380 points, S&P closed more than 1.5% in red,that fingerandhalf feerose above 2%.
The main U.S. stock index ended its three-week losing streak this week.Dow JonesWeekly up 2.66%, S&P weekly up 3.65%,that fingerThe performance was even better, with a weekly gain of 4.14%.
In terms of politics and economy, following Fed Chairman Powell reiterated his hawkish interest rate hike stance on Thursday, Fed Governor Christopher Waller said on Friday that he may support another 3 rate hike in September, suggesting that the Fed should Forward guidance is abandoned during the tightening cycle, and the future policy path will depend entirely on economic data.
Faced with Russia’s continued threat of gas cuts, the European Commission held a meeting of energy ministers in Brussels on the 9th to draft restrictions on the income of non-natural gas energy producers, while helping power companies maintain operations, but currently 27 EU member states have implemented Russian gas. Reactions to the price cap were mixed.
The Group of Seven (G7) nations remain committed to getting more countries to join Russia’s oil price cap plan before discussing the details of the policy in detail.
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 607 million, and the number of deaths has exceeded 6.51 million. More than 12.6 billion vaccine doses have been administered in 184 countries worldwide.
The performance of the four major U.S. stock indexes on Friday (9th):
Focus stocks
The five kings of technology have strong buying momentum. apple (AAPL-US) rose 1.88%; Meta (META-US) rose 4.37%; Alphabet (GOOGL-US) rose 2.09 percent; Amazon (AMZN-US) rose 2.66 percent; Microsoft (MSFT-US) rose 2.30%.
Dow JonesMore than half of the constituents closed in the red. Salesforce (CRM-US) rose 3.63%; 3M (MMM-US) rose 3.21%; the development of heavy industry (CAT-US) rose 3.46%; American Express (AXP-US) rose 3.2 percent; UnitedHealth (UNH-US) fell 0.29%.
half feeConstituent stocks rose in unison. Intel (INTC-US) rose 2.31%; Micron (MU-US) rose 3.70%; NVIDIA (NVDA-US) rose 2.84%; AMD (AMD-US) rose 3.23 percent; Applied Materials (AMAT-US) rose 2.90%; Qualcomm (QCOM-US) rose 2.48%; Texas Instruments (TXN-US) rose 1.38%.
Taiwan stock ADR rose collectively. TSMC ADR (TSM-US) rose 1.61%; ASE ADR (ASX-US) rose 1.59%; UMC ADR (UMC-US) rose 1.88%; Chunghwa Telecom ADR (CHT US) rose 0.36%.
Corporate News
apple (AAPL-US) rose 1.88 percent to $157.37 a share. As Apple began to accept pre-orders for the iPhone 14 series, the delivery time of the iPhone 14 Pro/Pro Max series in online stores in the United States and some other countries/regions was postponed to the end of October or even beyond, and the buying enthusiasm was quite enthusiastic.
American electric car maker Tesla (TSLA-US) rose 3.60% to $299.68 a share. Tesla is considering building a lithium refinery on the Texas Gulf Coast to ensure a steady supply of key components for electric vehicle batteries, thereby boosting EV production.
U.S. ride-hailing service Lyft (LYFT-US) rose 5.47 percent to $18.11 a share. Lyft is rumored to be acquired by Twitter, predicts GM (GM-US)、DoorDash (DASH-US) and Ford (F-US) may be potential buyers.
Electronic signature technology company DocuSign (DOCU-US) surged 10.51% to $64.04 per share. DocuSign’s second-quarter earnings report was successful in both revenue and profit. Among them, DocuSign’s largest revenue source “subscription” revenue increased by 23% year-on-year, which was better than market expectations, and its third-quarter financial forecast also exceeded market expectations.
Qualcomm (QCOM-US) rose 2.48% to $132.05 per share.The European Commission backs down on Qualcomm’s 997 millionEUR (approximately $1 billion) in an antitrust case, ending a tangle of lawsuits since 2018.
Wall Street Analysis
Fed tightening monetary policy weighs on both stocks and bonds in 2022, with the S&P down 14.6% so far,10-Year U.S. Treasury YieldHaving recently surged to 3.30%, many economists see a higher chance of a recession next year.
Jake Schurmeier, portfolio manager at Harbour Capital Advisors, commented: “The tightening of financial conditions has led to reduced liquidity, which has made it more difficult to hold large positions in bonds, and may see more volatility in the future.”
Phil Orlando, equity market strategist at Federated Hermes, said: “The U.S. economy is already headed for a recession, and the Fed’s increased pace on quantitative tightening (QT) will accelerate the decline in stock prices and the rise in U.S. bond yields.”
Solomon Tadesse, head of quantitative securities strategy for Societe Generale in North America, believes: “The Fed will eventually cut its balance sheet by $3.9 trillion, which is equivalent to regarding 18 implicit rate hikes. S&P might eventually fall to the 2900-3200 range.”
The figures are updated before the deadline, please refer to the actual quotation.
