The summer rally in U.S. stocks appears to have stalled, Wall Street is worried about a more hawkish signal from the Federal Reserve, and before the annual meeting of global central banks,10-Year U.S. Treasury YieldOn Monday (22nd), the dollar rose sharply, and technology stocks became the focus of the killing. All S&P sectors were stained with blood, and all the four major indexes closed in the black.
that fingerClose black 2.55%,half feeplunged nearly 4%.Dow JonesIt closed down more than 640 points, and the S&P closed down more than 2%, its worst single-day performance since June 16.
The annual meeting of global central banks in Jackson Hole, Wyoming, USA is about to take place this week. The outside world focuses on the speech delivered by Federal Reserve Chairman Powell on Friday (26th) morning. Experts generally expect that Powell will reiterate A hawkish stance against inflation with continued interest rate hikes.
The National Association for Business Economics (NABE) polled 198 economists from Aug. 1 to 9, showing that 72 percent of economists expect the next U.S. recession to begin in mid-2023. The Prime Minister is skeptical of a soft landing for the economy.
A fall in bond yields this summer has fueled a recent rebound in U.S. stocks, but 10-Year U.S. Treasury YieldAfter falling below 2.6% in early August, it has risen again above 3%, the highest since July 20. Nicholas Colas, co-founder of DataTrek Research, believes that this unsettled market sentiment and was one of the reasons why U.S. stocks fell on Monday.
Energy stocks were the least negative on Monday, after Saudi Arabia said on Monday that futures prices did not reflect supply and demand fundamentals and that OPEC was poised to cut production, prompting news that Brent Cruderebounded from session lows. In addition, Gazprom last week announced the closure of Nord Stream 1 from August 31 to next month 2 to maintain the gas pipeline.
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 596 million, and the number of deaths has exceeded 6.45 million. More than 12.4 billion vaccine doses have been administered in 184 countries worldwide.
The performance of the four major U.S. stock indexes on Monday (22nd):
- US stocksDow JonesIt was down 643.13 points, or 1.91 percent, at 33,063.61.
- NasdaqThe index fell 323.64 points, or 2.55 percent, to end at 12,381.57.
- S&P 500 IndexIt was down 90.49 points, or 2.14 percent, at 4,137.99.
- Philadelphia SemiconductorThe index fell 109.9 points, or 3.72 percent, to end at 2,843.4.
Focus stocks
The five kings of science and technology fell endlessly. apple (AAPL-US) fell 2.30%; Meta (META-US) fell 2.92%; Alphabet (GOOGL-US) fell 2.53 percent; Amazon (AMZN-US) fell 3.62 percent; Microsoft (MSFT-US) fell 2.94%.
Dow JonesConstituent stocks were chilled. Salesforce (CRM-US) fell 3.69%; Disney (DIS-US) fell 3.5 percent; Home Depot (HD-US) fell 2.84%; American Express (AXP-US) fell 2.8%; 3M (MMM-US) fell 2.49%.
half feeNone of the constituent stocks were spared. Micron (MU-US) fell 3.64%; AMD (AMD-US) fell 3.24%; NVIDIA (NVDA-US) fell 4.57%; Applied Materials (AMAT-US) fell 3.65%; Texas Instruments (TXN-US) fell 2.84%; Qualcomm (QCOM-US) fell 4.06%.
Only Chunghwa Telecom is the best in Taiwan ADR. TSMC ADR (TSM-US) fell 2.25%; ASE ADR (ASX-US) fell 3.46%; UMC ADR (UMC-US) fell 3.74%; Chunghwa Telecom ADR (CHT US) rose 0.52%.
Corporate News
apple (AAPL-US) fell 2.30 percent to $167.57 a share. Tianfeng International Securities analyst Ming-Chi Kuo predicted in a tweet on Monday that Apple’s upcoming new high-end 14-inch and 16-inch MacBook Pros will be powered by TSMC’s M2 chip made with 5-nanometer technology and mass-produced in the fourth quarter of 2022.
AMC Entertainment Holdings (AMC-US) fell 41.92 percent to $10.46 a share, as the world’s second-largest movie theater chain, Cineworld, may declare bankruptcy ahead of its preferred stock listing, spooking investors.
AMC’s preferred stock, which began trading on the New York Stock Exchange on Monday under the ticker “APE,” fell more than 13% to $6.00 a share.
American electric car leader Tesla (TSLA-US) fell 2.28% to $869.74 per share after Tesla CEO Elon Musk recently announced that the price of Tesla’s Fully Automatic Driving System (FSD) in North America will increase by 25% to $15,000, which will be released on September 5. effective date.
Ford (F-US) plunged 5.04% to $15.08 a share. Ford on Monday confirmed it would cut about 3,000 jobs, mainly in North America and India, effective Sept. 1. In order to realize the Ford + transformation plan, Ford is working to reduce costs, improve profits, and prepare funds to enter the electric vehicle market, and compete with electric vehicle leader Tesla.
Wall Street Analysis
At least four Fed officials issued hawkish remarks last week, and the momentum of the US stock market’s rebound from the June bear market low quickly faded.
Evercore ISI analyst Julian Emanuel pointed out that several Fed officials have continued to reiterate recently that inflation will be contained at all costs. Powell is likely to continue to reiterate his staunchly hawkish rhetoric at the annual meeting of global central banks this week.
Jim Paulsen, investment strategist at the Leuthold Group, believes that the current Fed stance still leans toward over-tightening policy, but that doesn’t mean they won’t turn to easing in a few months’ time. History always repeats itself again and again.
Wall Street analysts warned that the market should not over-interpret the summer rally. Analysts at Guggenheim, a financial investment service provider, believe that U.S. stocks have rebounded strongly since the June Fed meeting, but the S&P failed to close above the 200-day moving average last week. , according to the past bear market history, the failure to break through the 200-day moving average (4320 points) may predict that the decline in US stocks will further expand in the next few months.
Morgan Stanley U.S. stock strategist Mike Wilson predicts that the S&P will reach around 3,900 points by the end of this year, and analysts at Bank of America are even more pessimistic, predicting that the S&P target will drop to 3,600 points by the end of the year.
The figures are updated before the deadline, please refer to the actual quotation.