The hawkish Fed will continue to suppress market risk sentiment, the British pound and British bonds have plummeted, the dollar has soared to a record high again, and the panic index VIX has surged above 30.10-Year U.S. Treasury YieldClimbing, U.S. stocks failed to rebound in early trading on Monday (26th), and technology stocks turned black and fell.
Dow JonesIt closed down more than 320 points and fell into a bear market for the first time since 2020. The S&P fell more than 1% to 3,655.04 points, which was lower than the previous low in mid-June and hit a new low since December 2020, while Apple closed in a thrilling red.
On the political and economic front, the “hawks” of Fed officials lingered. Atlanta Fed President Raphael Bostic said on Monday that the Fed still has some way to go to reduce inflation.
Federal Open Market Committee (FOMC) voting committee member Susan Collins, president of the Federal Reserve Bank of Boston, said in her first speech since taking office in July that for the Fed to achieve price stability, it needs to slow the pace of job growth, while at the same time to some extent Raising the unemployment rate, she supports the need for further monetary tightening to curb inflation.
The British government last week announced the largest tax cut and investment incentive plan since 1972, and investors are worried that the United Kingdom will fall into recession due to large tax cuts and borrowing.GBPI am afraid that it will fall to parity with the dollar, and the British foreign exchange and stock and bond markets are in turmoil.
The Bank of England sought to reassure investors on Monday, saying it was closely monitoring developments in financial markets and would change interest rates “without hesitation” if necessary.
The European Union may delay an agreement on a price cap on Russian oil until a more comprehensive sanctions package is reached, foreign media reported, citing sources. Negotiators said countries such as Cyprus and Hungary were opposed to setting an oil cap.
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 615 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 Monday (26th):
Focus stocks
The five heavenly kings of science and technology have seen ups and downs. apple (AAPL-US) rose 0.23%; Meta (META-US) ) fell 2.88%; Alphabet (GOOGL-US) fell 0.58%; Amazon (AMZN-US) rose 1.20 percent; Microsoft (MSFT-US) fell 0.20%.
Dow JonesMore than half of the constituent stocks fell. traveller (TRV-US) fell 3.14 percent; Boeing (BA-US) fell 2.99 percent; Chevron (CVX-US) fell 2.63%; Goldman Sachs (GS-US) fell 2.43 percent; Walmart (WMT-US) rose 0.96%.
half feeConstituent stocks generally closed in the dark. Intel (INTC-US) fell 2.00%; Micron (MU-US) fell 2.44%; NVIDIA (NVDA-US) fell 2.30%; AMD (AMD-US) fell 2.44 percent; Applied Materials (AMAT-US) fell 1.60%; Qualcomm (QCOM-US) fell 1.20%; Texas Instruments (TXN-US) fell 0.51%.
Only Chunghwa Telecom is the strongest in Taiwan stock ADR. TSMC ADR (TSM-US) fell 1.16%; ASE ADR (ASX-US) fell 2.65%; UMC ADR (UMC-US) fell 2.37%; Chunghwa Telecom ADR (CHT US) rose 0.94%.
Corporate News
apple (AAPL-US) received a thrilling 0.23% dividend to $150.77 per share. JPMorgan analyst Samik Chatterjee reported on Sunday (25th) that two weeks after the launch of Apple’s iPhone 14 series, demand for the high-end iPhone 14 Pro model is still strong, which is a good sign for Apple’s net profit.
American chip giant Intel (INTC-US) fell 2.00% to $26.97 a share. According to the market, Intel and the Italian government have initially finalized the establishment of a large European chip factory in Vigasio, a city in northeastern Italy. In addition, Intel’s Mobileye and Geely Holding Group announced further expansion of cooperation on advanced driver assistance systems (ADAS) and autonomous vehicle technology.
Tesla (TSLA-US) rose 0.25% to $276.01 a share. There were no casualties reported on Monday at Tesla’s German plant. A spokesman for Tesla’s German factory said that 800 cubic meters of cardboard, paper and wood waste in the recycling plant outside the factory caused the fire, and the fire was basically extinguished after the local fire brigade was dispatched to rescue the disaster five hours later.
Macau plans to reopen to Chinese tourist groups as soon as November, boosting gaming stocks. Sands Corp (LVS -US) surged 11.72%, Wynn Resorts (WYNN-US) surged 11.99%.
PG&E (PCG-US) rose 1.11 percent to $12.75 a share. EQT (EQT-US) fell 4.56 percent to $39.38 a share.The two companies will join on October 3S&P 500 Indexreplacing Citrix and Duke Realty.
Wall Street Analysis
Mike Bailey, head of research at FBB Capital Partners, said: “The economy in general feels like a remake of the movie ‘West Side Story,’ with central banks chasing the job market and the job market reluctant to let go. Chairman Powell and BoE Governor Bailey is all trying to slow economic growth, but now employers are keeping as many employees as possible to avoid job losses when recovering from the next recession.”
“The market now appears to be pricing in the typical impact of a deep recession, with the oil sell-off likely to see OPEC intervene again,” the ANZ report said.
“The U.S. market will continue to be challenged by uncertainty ahead of the start of the third earnings season next month, which will provide more detail on the health of corporate revenue and earnings,” said John Stoltzfus, investment strategist at Oppenheimer.
“Investors will also be closely watching the Fed’s preferred inflation gauge, core personal consumption expenditures (PCE) in the second quarter, due this Thursday, looking for Signs of cooling inflation. What the market needs to see now to get out of the current conundrum is that inflation starts to come down significantly.”
The figures are updated before the deadline, please refer to the actual quotation.