Economic data supported the Fed’s aggressive interest rate hike policy, the main indexes opened lower, the Nasdaq fell nearly 3% | Anue Juheng

The number of Americans receiving unemployment benefits unexpectedly fell below the 200,000 level last week, hitting a new low since the end of April this year, highlighting that the labor market remains solid. In addition, the US core personal consumption expenditures (PCE) price index and personal consumption in the second quarter The better-than-expected data may allow the Federal Reserve to continue aggressively raising interest rates to fight inflation. U.S. stocks opened lower on Thursday (29th).

Before the deadline,Dow Jones Industrial Averagedown nearly 540 points or nearly 2%,Nasdaq Composite Indexfell more than 300 points or nearly 3%,S&P 500 Indexfell 2.3%,Philadelphia SemiconductorThe index fell nearly 3.5%.

The number of Americans claiming unemployment benefits unexpectedly fell to a five-month low today, and U.S. index futures fell. Technology stocks were broadly lower in premarket trading after Hong Kong’s Hang Seng Technology Index hit a new low since its inception in 2020, while European stock valuations fell to their lowest level since 2012.

The adjusted number of Americans receiving unemployment benefits last week reported 193,000, a decrease of 16,000 from the previously revised 209,000, lower than market expectations of 215,000, and the lowest since the end of April this year, highlighting that the labor market is still solid .

In addition, the final value of the second-quarter gross domestic product (GDP) released by the United States on the same day was -0.6%, which was in line with market expectations and the previous revision, but GDP contracted for two consecutive quarters, which meant that the economy fell into a technical recession. The core PCE price index in the second quarter of the United States reported a quarterly annual growth rate of 4.7%, expected to be 4.4%, and the previous value of 5.2%. Expenditure was reported at 2%, compared with the previous value of 1.5%.

Dollar remains strong, U.S. 10-year Treasury yieldClimbed, investors expect the Fed will continue to raise interest rates sharply. at the same time,GBPBritish government bond yields rose, snapping a two-day winning streak.

European bond yields also rose as investors digested the latest inflation data and comments from officials at the European Central Bank (ECB).EURThe final value of the regional consumer confidence index fell to -28.8, a new low since 2020, while German inflation continued to pick up. The initial value of the consumer price index (CPI) in September rose by 10% year-on-year, far higher than expected by 8% and the previous value of 7.9 %.

German government decides to impose price controls on gas and electricity, while providing up to 200 billion for ‘economic defense shield’EUR($194 billion), though the German finance minister said the move would not fuel inflation.

As of 21:00 on Thursday (29th) Taipei time:
S&P 500 daily chart. (Image source:
Stocks in focus:

apple (AAPL-US) fell 2.95% to $145.49 a share in early trade

Apple’s previous news of abandoning the latest iPhone 14 series to increase production is still fermenting, and its stock price fell more than 2% before the market. BofA downgraded Apple’s stock rating to “Neutral” from “Buy”, saying that while Apple has performed relatively well in a down market, weaker consumer demand will be negative for Apple influences.

Bed Bath & Beyond(BBBY-US) fell 4.02% to $6.20 a share in early trade

Household goods retailer Bed Bath & Beyond’s latest earnings report showed a net loss of $366 million or $4.59 per share from $73 million or $0.72 per share in the same period last year; the adjusted loss was reported at $3.22, far exceeding the market Expected $1.85, while revenue was only reported $1.44 billion, less than expected $1.47 billion. In addition, as the company began to clear excess inventory, gross profit margins also fell, and the stock price fell nearly 6% in premarket.

CarMax(KMX-US) fell 17.80% to $71.04 per share in early trade

Car retailer CarMax reported a dismal performance in its latest financial report before the market, with both revenue and profit below market expectations, causing the stock price to plummet more than 12% before the market. The company said a decline in consumer purchasing power contributed to a sharp drop in sales in the final months of last quarter.

Today’s key economic data:
  • The number of Americans receiving unemployment benefits last week reported 193,000, expected 215,000, the previous value of 209,000
  • The number of people receiving unemployment benefits in the United States reported 1.347 million last week, 1.388 million is expected, and the previous value was 1.376 million
  • U.S. second-quarter real GDP quarterly growth rate final report – 0.6%, expected – 0.6%, the previous value – 1.6%
  • The final quarterly growth rate of the US core PCE price index in the second quarter was 4.7%, expected to be 4.4%, and the previous value of 5.2%
  • The U.S. PCE price index in the second quarter of
  • U.S. second-quarter real personal consumption expenditures rose 2.0%, down from 1.5% previously
Wall Street Analysis:

Kayne Anderson Rudnick portfolio manager and senior research analyst Julie Biel said of the Bank of England that the central bank is in a very difficult position right now, and everyone is a little bit cornered when they see market volatility and market reaction.

Julia Raiskin, head of Asia-Pacific markets at Citigroup, said few assets were trading constructively other than the dollar. The market is very pessimistic, and investors are watching.

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