Fears of a global economic recession intensified, further dragging down investment sentiment. The VIX panic index rose to a three-month high on Friday (23rd), and U.S. bond yields and the dollar soared.GBPplummeted, hitting a 37-year low,goldThe lowest in more than 2 years, New York crude oil fell below $80 a barrel, and the four major U.S. stock indexes opened lower.Dow JonesIt fell nearly 500 points, hitting a new low in nearly 2 years, approaching the brink of a bear market.
The main U.S. stock index was once again engulfed in black for the week, and the S&P fell as much as 9.2% in two weeks.Dow JonesIt fell nearly 8% in two weeks, the worst two-week performance since June. For the past two weeks,that fingerThe cumulative decline is more than 10%, which is the largest decline since the collapse of the epidemic in March 2020.
In terms of data, S&P Global announced the preliminary survey results of purchasing managers (PMI) on Friday. The U.S. composite PMI in September was 51.8, a two-month high, and the services and composite PMIs were 49.2 and 49.3, both record The three-month high was better than market expectations, but the good news on the economy added leverage to the Federal Reserve (Fed) to raise interest rates sharply, which became bad news for the stock market.
In terms of politics and economy, the chairman and vice chairman of the US Federal Reserve talked on Friday with no plans to save the market. Chairman Powell said at the “Fed Listens” symposium on Friday that after the disruption of the new crown epidemic, the US economy may enter. A “new normal” in which the Fed will continue to deal with a series of unusual disruptions. Vice Chairman Brainard reiterated that U.S. inflation is very high, hitting low-income households hard.
The British government announced on Friday the largest tax cuts and investment incentives since 1972 to restore growth to an economy battered by high inflation. Former US Treasury Secretary Summers said the British policy was naive and wishful thinking.GBPFall to parity with the dollar to create conditions.
U.S. Secretary of State Antony Blinken met with Chinese State Councilor and Foreign Minister Wang Yi on the sidelines of the United Nations General Assembly on Friday, the first meeting between the two since the G20 (G20) foreign ministers meeting in Indonesia in July. Stressed to Wang Yi that the United States is committed to peace and stability in the Taiwan Strait, and warned China not to provide assistance to Russia that invaded Ukraine.
The new crown pneumonia (COVID-19) epidemic continues to spread around the world. Before the deadline, data from Johns Hopkins University in the United States pointed out that the number of confirmed cases worldwide has exceeded 614 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.
The performance of the four major U.S. stock indexes on Friday (23rd):
- US stocksDow JonesIt was down 486.27 points, or 1.62 percent, at 29,590.41.
- NasdaqThe index fell 198.88 points, or 1.8 percent, to end at 10,867.93.
- S&P 500 IndexIt was down 64.76 points, or 1.72 percent, at 3,693.23.
- Philadelphia SemiconductorThe index fell 35.4 points, or 1.45 percent, to end at 2,408.9.
Focus stocks
The five kings of science and technology were wiped out. apple (AAPL-US) fell 1.51%; Meta (META-US) ) fell 1.69%; Alphabet (GOOGL-US) fell 1.40%; Amazon (AMZN-US) fell 3.01 percent; Microsoft (MSFT-US) fell 1.27%.
Dow JonesConstituents were led by Chevron. Chevron (CVX-US) fell 6.53%; Boeing (BA-US) tumbled 5.37%; the development of heavy industry (CAT-US) fell 3.7 percent; Goldman Sachs (GS-US) fell 3.5 percent; Home Depot (HD-US) rose 0.67%.
half feeConstituent stocks were broadly weak. Intel (INTC-US) fell 1.96%; Micron (MU-US) rose 0.89%; NVIDIA (NVDA-US) fell 0.36%; AMD (AMD-US) fell 2.22 percent; Applied Materials (AMAT-US) fell 0.88%; Qualcomm (QCOM-US) fell 2.01%; Texas Instruments (TXN-US) fell 0.82%.
Taiwan stocks ADR all closed in black. TSMC ADR (TSM-US) fell 2.33%; ASE ADR (ASX-US) fell 3.11%; UMC ADR (UMC-US) fell 1.83%; Chunghwa Telecom ADR (CHT US) fell 2.01%
Corporate News
According to Korean media reports, Apple requires component suppliers LG and Samsung to create a screen without crease, which increases the credibility of Apple’s investment in the folding mobile phone market. Supply chain sources pointed out that Apple is developing a clamshell model that folds horizontally and vertically. apple (AAPL-US) fell 1.51% to $150.43 a share with the broader market on Friday.
FedEx (FDX-US) fell 3.37 percent to $149.33 a share. FedEx’s profit and revenue in the last quarter were lower than expected. In order to combat the freight slump, it will increase its freight by an average of 6.9%-7.9% next year. This year, it will implement cost-saving measures. It is estimated that the savings can save up to 2.7 billion US dollars.
Costco, a well-known large-scale retailer (COST-US) fell 4.26 percent to $466.40 a share. Costco’s overall results for the fourth quarter of fiscal 2022 (ending Aug. 28, 2022) beat market expectations, but with logistics and labor costs remaining high, Costco said gross margins remained under pressure.
American chip design company Qualcomm (QCOM-US) closed 2.01 percent lower at $121.19 per share. Qualcomm announced at an auto investor conference that potential business opportunities related to its automotive chip business have risen to $30 billion.
Economic data
- U.S. September Markit manufacturing PMI initial value was 51.8, expected 51.1, the previous value was 51.5
- U.S. September Markit services PMI initial value was 49.2, expected 45, the previous value was 43.7
- U.S. September Markit Composite PMI initial value was 49.3, the previous value was 44.6
Wall Street Analysis
Investment bank Goldman Sachs said the Fed’s aggressive rate hikes showed little sign of slowing down, which may drag down U.S. stock valuations, so it lowered its year-end target for the S&P by about 16% to 3,600 from 4,300.
Kenny Polcari, strategist at SlateStone Wealth, said: “It looks like traders and investors are going to throw in the towel this week in what feels like ‘the sky is falling’. Once everyone stops saying they ‘think a recession is coming’ and accepts The fact that the recession has come, then there will be a change in people’s psychology.”
Chris Gaffney, president of global markets at TIAA Bank, said: “People are aware of continued interest rate hikes and this will put pressure on earnings. Although corporate valuations have fallen, they are still high and there is still a lot of room for interest rates to rise, which will be a global What the economic impact, the fear that the economy could be headed for a deeper recession than expected, is not good news.”
The figures are updated before the deadline, please refer to the actual quotation.