Despite Salesforce’s bright earnings report, recession fears continue to haunt Wall Street, JPMorgan Chase (JP Morgan) warned on Wednesday (1st) that the U.S. economic outlook has deteriorated, the Federal Reserve’s “Beige Book” report that the U.S. economic growth has slowed, and technology stocks The mid-term rebound lost momentum, financial stocks took the lead, and all the four major indexes closed in the black.Dow Jonesfell more than 170 points.
On the political and economic front, JPMorgan Chase CEO Dimon on Wednesday described the U.S. economy as heading for a “hurricane,” urging the Federal Reserve to take strong measures to avoid a recession and calling on investors to prepare.
The Federal Reserve’s “Beige Book” of jurisdictional economic surveys released on Wednesday showed that most regions reported slight or moderate growth, with four regions showing moderate economic growth and contacts in most regions saying manufacturing continued to grow. However, retail contacts are noticing a weakening as consumers face higher prices. Residential property liaisons also observed weakness, mainly as buyers were affected by high prices and rising interest rates.
U.S. President Biden met with Federal Reserve Chairman Powell and Treasury Secretary Jenny Yellen on Tuesday to discuss the U.S. recently facing the worst inflation in 40 years. Biden reiterated his support for the Fed’s tightening policy and stressed that he would not interfere in the Fed’s decision-making. Yellen admitted that she was wrong last year that inflation was temporary.
On the geopolitical front, EU leaders agreed on Tuesday to impose an embargo on more than two-thirds of Russia’s oil and also prevent insurance companies from underwriting Russian crude cargoes. The ban will take full effect by the end of this year, with exemptions for Hungary, Slovakia and the Czech Republic It is part of the sixth round of EU sanctions against Russia.
The Organization of the Petroleum Exporting Countries (OPEC), Russia and its allies, formed by OPEC+, is due to meet on Thursday and is expected to keep its strategy of gradually restoring original output unchanged.
Markets had previously reported that OPEC+ was considering suspending Russia’s participation in the oil production agreement, but Archyde.com quoted sources as saying that at the OPEC+ technical expert group meeting on Wednesday, members did not discuss excluding Russian production.
Deng Zhenzhong, Political Councilor of the Executive Yuan of Taiwan, and U.S. Deputy Trade Representative Bianchi held a video conference on Wednesday to announce the launch of the Taiwan-U.S. 21st Century Trade Initiative. The first meeting is scheduled to be held in Washington later in June. Dialogue with a view to reaching agreement on areas such as digital trade practices, environmental and worker protection, and simplification of trade procedures.
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 530 million, and the number of deaths has exceeded 6.29 million. More than 11.9 billion vaccine doses have been administered in 184 countries worldwide.
The performance of the four major U.S. stock indexes on Wednesday (1st):
- US stocksDow JonesIt was down 176.89 points, or 0.54 percent, at 32,813.23.
- NasdaqThe index fell 86.93 points, or 0.72 percent, to end at 11,994.46.
- S&P 500 IndexIt was down 30.92 points, or 0.75%, at 4,101.23.
- Philadelphia SemiconductorThe index fell 49.7 points, or 1.60%, to end at 3,049.0.
Focus stocks
The five kings of technology were mixed. apple (AAPL-US) fell 0.087%; Meta (formerly Facebook) (FB-US) fell 2.58%; Alphabet (GOOGL-US) rose 0.11%; Amazon (AMZN-US) rose 1.23 percent; Microsoft (MSFT-US) rose 0.20%.
Dow JonesMore than half of the constituents closed in the dark. Walmart (WMT-US) fell 2.47%; 3M (MMM-US) fell 1.92%; American Express (AXP-US) fell 1.81%; Salesforce (CRM-US) surged 9.88%; Chevron (CVX-US) rose 0.95%.
half feeAll constituent stocks fell. Intel (INTC-US) fell 0.70%; Applied Materials (AMAT-US) fell 2.41%; Micron (MU-US) fell 0.39%; Texas Instruments (TXN-US) fell 1.32%; AMD (AMD-US) fell 0.63%; NVIDIA (NVDA-US) fell 1.89%; Qualcomm (QCOM-US) fell 1.72%.
Taiwan stocks ADR collectively closed lower. TSMC ADR (TSM-US) fell 0.58%; ASE ADR (ASX-US) fell 1.54%; UMC ADR (UMC-US) fell 1.93%; Chunghwa Telecom ADR (CHT US) fell 0.16%.
Corporate News
Sheryl Kara Sandberg, chief operating officer of Facebook’s parent company Meta, announced Wednesday that she will be stepping down this fall, with Meta growth director Javier Olivan taking over. The news of the departure of Meta’s No. 2 person made Meta dive in late trading, closing 2.58% lower at $188.64 per share. Separately, Meta announced Tuesday that the company’s ticker name will be changed from “FB” to “META” starting June 9.
apple (AAPL-US) fell 0.087% to $148.71 a share. The Nikkei Asian Review quoted sources as saying that Apple moved some iPad production lines out of China and to Vietnam for the first time after months of supply chain disruptions caused by zero-clearing policies in Shanghai and elsewhere Suppliers increase inventories, and various measures are aimed at diversifying supply chain risks.
Tesla (TSLA-US) fell 2.36 percent to $740.37 a share. Tesla CEO Elon Musk, seemingly fed up with the work-from-home model, issued an ultimatum to Tesla management on Wednesday, requiring remote employees to stay at the office for at least 40 hours a week or leave Tesla.
Global cloud customer relationship management software leader Salesforce (CRM-US) surged 9.88% to $176.07 a share. Salesforce released its latest earnings report after the US stock market closed on May 31. The first-quarter results exceeded analysts’ expectations and raised its full-year profit forecast.
Economic data
- U.S. May Markit manufacturing PMI final value was 57, expected 57.5, the previous value was 59.2
- US May ISM manufacturing index reported 56.1, expected 54.5, the previous value of 55.4
- U.S. JOLts job openings reported 11.4 million in April, expected 11.4 million, and the previous value of 11.549 million
Wall Street Analysis
U.S. stocks ushered in a new month on Wednesday, corporate first-quarter earnings reports came to an end, the Federal Reserve began to implement a plan to shrink its balance sheet, and Fed officials strongly expressed their intention to raise interest rates in the next two meetings, while U.S. stocks continued to search in the summer. the way forward.
After a rough first five months of 2022, the pain in global equities may not be over, according to a Citi report. Investors have previously been jittery over the potential impact of runaway inflation and tightening policy, and the cut in corporate forecasts is the latest headwind for the market.
Max Gokhman, chief investment officer of AlphaTrAI, said that investors had better wait and see how the next quarter will develop. In late July, the forecast situation will become clearer, but before that, the market is expected to be very volatile and likely to fall further into a bear market. .
The figures are updated before the deadline, please refer to the actual quotation.