Inflation is higher than expected, U.S. stocks are mixed, Huida plummets – Business Times

2023-08-12 01:00:00

The U.S. producer price index (PPI) rose more than expected in July, indicating that inflation is picking up again, which may cause Fed officials to maintain a hawkish stance and revive fears of raising interest rates. After the release of the PPI data, the 10-year U.S. bond yield hit a one-week high, technology stocks plummeted, and Huida fell more than 3.6%. Major U.S. stock indexes also fluctuated and closed in the black.

The Dow Jones Industrial Average rose 105.25 points, or 0.30%, to close at 35,281.40; the S&P 500 lost 4.78 points, or 0.11%, to close at 4,464.05; the Nasdaq Composite fell 93.14 points, or 0.68%, to close at 13,644.85 the Philadelphia Semiconductor index slipped 82.472 points, or 2.29 percent, to close at 3,514.546 points.

Most of the major indexes continued to fall this week, but the decline was less than last week. The Dow rebounded this week, rising 0.6% this week. The S&P and Nasdaq fell by about 0.3% and 1.9% respectively this week. Tired of falling, the Nasdaq is the first two-week losing streak in seven months.

In terms of data, the U.S. Bureau of Labor Statistics announced on the 11th that the producer price index (PPI) increased by 0.8% in July, a sharp acceleration from the revised 0.2% in the previous month. In addition, the monthly growth rate was 0.3%, which was also the largest increase since January this year. In view of the resurgence of wholesale inflation in the United States, reversing the previous year-long cooling trend, the outside world is worried that inflation in the United States may be revived.

Quincy Krosby, global strategist at LPL Financial, said the acceleration in wholesale price increases underscored that the Federal Reserve has yet to win its battle against inflation. He also pointed out that the latest inflation-related data will fuel Fed hawks and strengthen their support for raising interest rates in September.

On the political and economic front, the market is still waiting to see the hawkish speeches of two Federal Reserve officials on Thursday. San Francisco Federal Reserve Bank President Mary Daly pointed out on the 10th that although inflation is moving in the right direction, the water level is still high. To return to the 2% inflation target, the Fed still needs to work harder.

On the other hand, former Goldman Sachs chief economist Jim O”Neill (Jim O”Neill), who first coined the term “BRIC”, put forward his personal views on inflation and interest rates. He said that even if inflation subsides, the world’s major economies will The central bank still has to keep interest rates near 5% for longer than markets expect.

Even as speculation swirls that the rate hike cycle is coming to an end, central bank policymakers have largely dismissed forecasts of an imminent rate cut, and O’Neill agrees that a rate cut is still a long way off.

(Business Times Chen Yanqi, Wu Huizhen, Xiao Lijun)

In July, the PPI unexpectedly did not cool down, and the U.S. technology stocks fell by half and fell nearly 2.3%, the worst

Except for the Dow Jones, all major U.S. stock indexes fell on Friday, and the S&P and Nasdaq fell for the second consecutive week. Feiban fell 2.29% on Friday. Earlier, the U.S. announced that the producer price index (PPI) was higher than expected, indicating that the inflationary heat has not subsided, pushing up U.S. bond yields, and interest rate-sensitive large growth stocks fell. TSMC ADR also fell 2.96%.

For the week, the Dow rose 0.6%. The Nasdaq fell 1.9 percent, marking its second straight week of losses. The S&P fell 0.3%.

The U.S. PPI rose by 0.8% year-on-year in July, higher than the 0.2% increase in June and higher than economists’ expectations.

While traders generally expect the Fed not to tighten credit for the rest of the year, bets on whether the Fed will raise interest rates in September have slipped to 88.5% since the release of the PPI data, from 90% previously .

Jason Betz, a private wealth advisor at Ameriprise Financial, said: “In recent days, we have seen some major news and data announcements, but the market has chosen to trade sideways, which tells us that the market has priced everything in and has not. be affected by any surprise or unpleasantness”.

The two-year U.S. Treasury yield, in line with short-term rate expectations, climbed to 4.88% on Friday.

As a result, some big growth tech stocks have come under pressure, as high interest rates could slow economic growth, undercutting the companies’ ability to meet growth expectations that have left them stretched high.

Tesla, Meta, and Microsoft all fell between 0.6% and 1.3%.

Huida fell 3.6%. The semiconductor index came under pressure, falling 2.3%, marking its fourth straight decline.

“Given what tech stocks have done so far, it’s hard not to do some profit-taking. Time will tell if we’re right on that front,” said Ameriprise’s Betz.

Among the S&P categories, health care and energy stocks have gained significantly; both are the worst-performing sectors this year, although energy stocks have risen seven times in a row.

U.S.-listed shares of Alibaba and fell 3.5% and 5.3%, respectively, as China’s latest stimulus measures disappointed investors and fresh data showed China’s post-epidemic recovery was losing steam.

★Four major indexes

The Dow Jones rose 105.25 points, or 0.30%, to close at 35,281.40 points.

NASDAQ fell 76.18 points, or 0.56%, to close at 13,644.85 points.

The S&P500 fell 4.78 points, or 0.11%, to close at 4,464.05 points.

Philadelphia Semiconductor fell 82.47 points, or 2.29%, to close at 3,514.55 points.

★11 Major Stocks

Energy (SPNY) up 1.56% Healthcare (SPXHC) up 0.57%

Utilities (SPLRCU) up 0.51% Financials (SPSY) up 0.21%

Real estate (SPLRCREC) rose 0.19%, consumer staples (SPLRCS) rose 0.19%

Industrial stocks (SPLRCI) rose 0.10%, materials stocks (SPLRCM) fell 0.27%

Consumer Discretionary (SPLRCD) fell 0.28%, Communication Services (SPLRCL) fell 0.48%

Technology stocks (SPLRCT) fell 0.88%

★Heavy technology stocks

1. Top five stocks by market capitalization

Microsoft (MSFT) fell 0.59% to close at $321.01.

Apple (AAPL) rose 0.03% to close at $177.79.

Amazon (AMZN) fell 0.11% to close at $138.41.

Alphabet (GOOGL) fell 0.10% to close at $129.56.

Tesla (TSLA) fell 1.10% to close at $242.65.

2. Big Five Fang stocks

Meta ( Meta ) fell 1.34% to close at $301.64.

Apple (AAPL) rose 0.03% to close at $177.79.

Amazon (AMZN) fell 0.11% to close at $138.41.

Alphabet (GOOGL) fell 0.10% to close at $129.56.

Netflix (NFLX) fell 1.93% to close at $421.66.

3. Other focus stocks

Cisco (CSCO) rose 0.79% to close at $53.79.

Intel (INTC) gained 0.61% to close at $34.89.

Oracle Corporation (ORCL) rose 0.06% to close at $113.06.

Apple (AAPL) rose 0.03% to close at $177.79.

IBM (IBM ) fell 0.09% to close at $143.12.

Alphabet (GOOGL) fell 0.10% to close at $129.56.

Amazon (AMZN) fell 0.11% to close at $138.41.

Microsoft (MSFT) fell 0.59% to close at $321.01.

Texas Instruments (TXN) fell 0.81% to close at $166.20.

Qualcomm (QCOM) fell 0.86% to close at $114.61.

Tesla (TSLA) fell 1.10% to close at $242.65.

Meta ( Meta ) fell 1.34% to close at $301.64.

Micron (MU) fell 1.64% to close at $64.37.

Advanced Micro Devices (AMD) fell 2.41 percent to close at $107.57.

Huida (NVDA) fell 3.62% to close at $408.55.

NXP (NXPI) fell 3.67% to close at $204.20.

Applied Materials (AMAT) fell 4.00% to close at $138.83.

★Taiwan stock ADR

TSMC fell $2.81, or 2.96%, to close at $91.99, converting the Taiwan stock price to 585.02 yuan.

UMC fell 0.11 US dollars or 1.55%, to close at 6.98 US dollars, converting the Taiwan stock price to 44.39 yuan.

ASE fell by US$0.15 or 1.97% to close at US$7.48, which translates into a Taiwan stock price of 118.92 yuan.

Chunghwa Telecom rose 0.06 US dollars or 0.16%, to close at 37.12 US dollars, and the conversion price of Taiwan stocks was 118.03 yuan.

(Times Information Financial Content Center)

further reading

PPI growth rebounded in July, U.S. stocks frightened

San Francisco Fed chief: U.S. inflation remains high

Tired of recession and inflation? Analyst: U.S. stocks need to rise again

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