The U.S. Federal Reserve (Fed) decided to raise interest rates and exacerbated fears of economic recession, coupled with the arrival of the quarterly four-derivative product settlement day “Four Witches”, increasing stock market volatility, the four major U.S. stock indexes Friday (16th) Comprehensive blackout, falling for the third consecutive day, oil prices fell, gold prices climbed,dollar indexsmall rise.
U.S. stocks have two consecutive blacks for the week,Dow JonesA total of 1.66% fell this week, the S & P fell 2.09%,Nasdaqdown 2.72%.NasdaqIt has fallen below the 50-day moving average on Thursday, and the S&P 500 also fell below this important technical support symbolizing stock market momentum on Friday.
Two Fed officials vowed to raise interest rates to fight inflation on Friday, echoing hawkish comments from Chairman Jerome Powell after the policy meeting. New York Federal Reserve Bank President John Williams predicted that next year’s end-point rate could exceed the 5.1% forecast in the December rate dot plot, while San Francisco Federal Reserve Bank President Mary Daly said that high inflation may be higher than she expected. For longer, none of the policymakers predicted a rate cut next year.
The Fed raised interest rates by 2 yards (50 basis points) this Wednesday, and major central banks such as Europe and the UK also raised interest rates. Although the interest rate increases in major countries have narrowed compared with previous times, they all showed their determination to continue tightening and admitted that the economy may decline next year.
According to money market bets, the market is currently predicting that the Fed will raise interest rates at least twice next year by 1 yard each. The interest rate will peak at about 4.8% before the middle of next year and fall back to 4.4% by the end of next year.
U.S. President Joe Biden signed a short-term funding bill on Friday to give Congress time to agree on spending for fiscal year 2023 and avoid a government shutdown.
In terms of geopolitics, the Biden administration is still evaluating whether it is necessary to continue the Trump era tariffs on China. At this time, the United States has decided to postpone the tariff exemption for some Chinese goods until September 30 next year, including pumps, compressors, Air cleaners and water filters, valves and various engines and other 352 products, but the tariff exemption for the remaining 197 products will be invalid.
U.S. House Speaker Nancy Pelosi backed a Senate-passed proposal this week to ban government devices from downloading or using software from China’s TikTok, meaning the case is expected to go to the House for a vote before next week’s adjournment for Biden to sign.
The new crown pneumonia (COVID-19) global epidemic continues to spread. Before the deadline, data from Johns Hopkins University in the United States showed that the number of confirmed cases worldwide has soared to 652 million, and the number of deaths has exceeded 6.663 million. More than 13.1 billion doses of vaccines have been administered in 184 countries around the world.
The performance of the four major US stock indexes on Friday (16th):
Focus stocks
Among the five kings of science and technology, only Meta closed higher. apple (AAPL-US) down 1.46%; Meta (META-US) up 2.82%; Alphabet (GOOGL-US) down 0.66%; Amazon (AMZN-US) down 0.67%; Microsoft (MSFT-US) down 1.73%.
Dow Jones Only 5 of the 30 constituent stocks rose. Kintor Heavy Industries (CAT-US) up 0.89%; Boeing (BA-US) up 0.53%. American Express (AXP-US) down 2.61%; Nike (OF THE US) fell 2.36%; McDonald’s (MCD-US) down 2.06%.
fee halfComponent stocks generally fell. GF (GFS-US) down 2.96%; Marvell (MRVL-US) fell 2.57%; Huida (NVDA-US) fell 2.25%; ASML (ASML) fell 2.05%.
Taiwan stock ADR closed black. TSMC ADR(TSM-US) fell 1.69%; ASE ADR (ASX-US) fell 1.08%; UMC ADR (UMC-US) down 0.57%; Chunghwa Telecom ADR (CHT US) down 0.69%.
Corporate News
Goldman Sachs (GS-US) fell 0.98% to close at $346.35 per share. It is rumored that Goldman Sachs will lay off 4,000 people. The company’s management has been asked to come up with a list of underperforming personnel. It will cut as many as 8% of its staff early next year, but some people say that the final list has not yet been drawn up.
Meta bucked the trend and rose 2.82% to close at $119.43 per share. JPMorgan Chase raised its investment recommendation rating from “neutral” to “overweight”, believing that the company’s revenue and profit pressure will ease next year, and a series of cost control measures are eye-catching. In addition, Apple’s iOS OS privacy changes help ease sales pressure.
Adobe(ADBE-US) rose 2.99% to close at $338.54 per share. The Photoshop developer announced after the close on Thursday that its fourth-quarter profit and first-quarter EPS forecast were higher than market expectations.
Universal (GM-US) fell 3.88 percent to close at $36.15 per share. The U.S. National Highway Traffic Safety Administration (NHTSA) said on Friday that it has opened an investigation into Cruise, the robo-taxi unit of General Motors, to determine whether the brakes of Cruise’s self-driving car braked sharply or failed to work, leading to a collision that injured two people.
Economic data
- The preliminary US comprehensive PMI was reported at 44.6 in December, lower than market expectations of 47.0 and 46.4 in November.
- The initial value of the U.S. manufacturing PMI in December was 46.2, lower than market expectations of 47.7 and 47.7 in November.
- The initial value of the PMI of the service industry in the United States in December was 44.4, which was lower than the market expectation of 46.8, and it was 46.2 in November.
Wall Street Analysis
U.S,EURThe region and the Bank of England have successively raised interest rates this week, and made it clear to the market that the cycle of rate hikes is not over yet, diluting the chances of the traditional “Christmas market” appearing this year. Markets were also digesting a flurry of U.S. economic reports this week that showed the economy was slowing while the U.S. labor market remained strong.
Kim Forrest, founder of Bokeh Capital, said that since the US announced the weak consumer price index (CPI) this Monday, everyone had expected the Fed and even other central banks to become less hawkish. suppress inflation.
“It looks like the market is finally starting to understand that bad news is bad news,” said Dave Wagner, equity analyst and manager at Aptus Capital Advisors. “Since bottoming out in October, the market has priced in the Fed’s potential to steer the U.S. toward a successful soft landing, but in I think I’m overly optimistic.”
Paul Schatz, president of Heritage Capital, believes that this wave of selling pressure is similar to the one that plunged the S&P into a bear market in June. In the pattern”. Although the S&P rebounded in the summer, it refreshed this year’s low again in October.
The numbers are all updated before the deadline, please refer to the actual quotation