A week before the Fed’s September interest rate meeting, the market’s highly anticipated inflation data unexpectedly strengthened, and the Fed will raise interest rates by 3 yards. On the 13th), it dived immediately after the opening, and all the way down, technology stocks and chip stocks fell sharply, and the four major indexes closed down collectively.
Dow JonesThe final blood flow exceeded 1200 points, the worst single-day performance since June 2020. The S&P tumbled more than 4%, falling below the 4,000-point mark, the biggest drop since June 2020.that fingerIt plunged more than 5%, the biggest drop since March 2020.half feeDown 6.18%, TSMC ADR fell more than 4%.
Even with a sharp drop in gasoline prices, the U.S. consumer price index (CPI) report in August still exceeded expectations. The August CPI increased by 0.1% month-on-month and 8.3% year-on-year, respectively, higher than market expectations, and the core CPI increased by 0.6% month-on-month. With an annual increase of 6.3%, also higher than market expectations.
Nick Timiraos, a Wall Street Journal reporter who is widely recognized by the market as the “Federal Fed’s microphone”, reported in an intraday report that violent interest rate hikes by the Federal Reserve this month are inevitable, and the probability of at least a 3-yard increase has increased. The outlook has also improved.
Nomura became the first investment bank to predict that the Federal Reserve will raise interest rates by 4 yards next week, up from its previous forecast of 3 yards, as upside risks to inflation have materialized.
After the latest CPI data came out, CME’s FedWatch tool showed that traders had fully priced in a three-yard rate hike in September and a 40% chance of a four-yard rate hike next week.
U.S. President Biden issued a statement on Tuesday, saying that the August CPI data showed that the U.S. economy has made more progress in reducing global inflation, but there is still more work to be done. It will take more time and determination to reduce inflation. That’s why the US passed the Inflation Reduction Act to lower the cost of health care, prescription drugs and energy.
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 609 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 Tuesday (13th):
- US stocksDow JonesIt tumbled 1,276.37 points, or 3.94 percent, to end at 31,104.97.
- NasdaqThe index tumbled 632.84 points, or 5.16 percent, to end at 11,633.57.
- S&P 500 IndexIt tumbled 177.72 points, or 4.32 percent, to settle at 3,932.69.
- Philadelphia SemiconductorThe index tumbled 168.8 points, or 6.18 percent, to end at 2,562.3.
Focus stocks
The five kings of science and technology were wiped out. apple (AAPL-US) fell 5.87%; Meta (META-US) ) tumbled 9.37%; Alphabet (GOOGL-US) fell 5.90%; Amazon (AMZN-US) plummeted 7.06%; Microsoft (MSFT-US) fell 5.50%.
Dow JonesConstituent stocks mourn everywhere. Boeing (BA-US) plummeted 7.19%; Home Depot (HD-US) plummeted 6.59%; Dow Chemical (DOW-US) plummeted 6.01%; Nike (OF THE US) fell 5.93%; Walgreens United Boots (WBA-US) fell 5.16%.
half feeConstituent stocks suffered a sharp sell-off. Intel (INTC-US) plummeted 7.19%; Micron (MU-US) plummeted 7.46%; NVIDIA (NVDA-US) plummeted 9.47%; AMD (AMD-US) plummeted 8.99%; Applied Materials (AMAT-US) plummeted 6.14%; Qualcomm (QCOM-US) plummeted 6.07%; Texas Instruments (TXN-US) fell 4.65%.
Taiwan stock ADR sadly closed lower. TSMC ADR (TSM-US) fell 4.07%; ASE ADR (ASX-US) fell 3.88%; UMC ADR (UMC-US) fell 4.29%; Chunghwa Telecom ADR (CHT US) fell 2.22 percent.
Corporate News
Meta (META-US) plunged 9.37% to $153.13 per share, the lowest since March 20, 2020. The Wall Street Journal reported on Monday that Meta’s Instagram bet on Reels, a short-video feature, is facing a dilemma. Instagram users spend only 17.6 million hours a day on Reels, less than one-tenth of TikTok users (TikTok users spend on TikTok every day) 197.8 million hours were spent on it).
Nintendo ADR (NTDOY-US) bucked the trend and rose 2.43% to $53.06 a share. The latest work in Nintendo’s “Splatoon” series, “Splatoon 3”, was a hit in Japan after its launch. It sold 3.45 million sets on the 3rd day of its launch, surpassing “The Collection!” The same period record for best-selling games such as Animal Crossing and Super Smash Bros.
Twitter (TWTR-US) also bucked the trend and closed up 0.65% to $41.74 per share. 98.6% of Twitter’s shareholders have voted in favor of the $44 billion sale of Twitter to the world’s richest man, Elon Musk.
Software giant Oracle (Oracle) (ORCL-US) fell 1.37 percent to $76.04 per share. Oracle’s latest earnings report was mixed, with adjusted earnings per share of $1.03, missing market expectations, but revenue of $11.4 billion, beating expectations.
Economic data
- The U.S. NFIB Small Business Confidence Index reported 91.8 in August, 90.8 expected, and the previous value of 89.9
- U.S. CPI in August reported an annual growth rate of 8.3%, expected 8.1%, and the previous value of 8.5%
- The monthly growth rate of US CPI in August was 0.1%, expected -0.1%, the previous value was 0%
- U.S. core CPI in August reported an annual growth rate of 6.3%, expected 6.1%, and the previous value of 5.9%
- The monthly growth rate of the US core CPI in August was 0.6%, expected 0.3%, the previous value was 0.3%
Wall Street Analysis
Quincy Krosby, equity strategist at LPL Financial, said: “Federal officials are keeping an eye on what’s driving inflation, which is clearly from food, transportation and rents, with rent inflation the most tenacious.”
“The CPI report increases the odds of at least another 4-yard rate hike between November and December, which would bring the federal funds rate above 4% by year-end,” said Neil Dutta, director of U.S. economic research at Renaissance Macroeconomics Institute.
Naeem Aslam, market analyst at Ava Trade, said: “The August CPI data has confirmed that inflation in the United States is still hot, which makes it more difficult for the Fed, which has been struggling to control inflation. The data confirms that the Fed is currently issuing The bullets are not killing inflation, which worries many traders.”
The figures are updated before the deadline, please refer to the actual quotation.