While Wall Street is worried about the hawkish Federal Reserve, the CEOs of JP Morgan Chase and Goldman Sachs issued pessimistic economic warnings at the same time. Closing out of ink.
Dow JonesClosed over 350 points, the S&P fell by more than 1.4%,That finger2% lower,fee halfPlummeted by more than 2.3%, TSMC’s ADR fell by more than 2.5%.
In terms of data, due to the weakening of the global economy and the strengthening of the US dollar, the US trade deficit increased to US$78.2 billion in October, a month-on-month increase of 5.4%, which was the second consecutive month of expansion. The market originally estimated that the trade deficit was US$80 billion.
In terms of politics and economy, JPMorgan Chase CEO Jamie Dimon warned on Tuesday that inflation is likely to push the U.S. economy into recession next year, with a 35% chance of a soft landing. Goldman Sachs Group CEO Su Dewei (David Solomon) also warned that the US economy may enter a recession next year.
US 2 years with 10-Year U.S. Treasury YieldThe inversion of the curve intensified, and the alarm bells of the bond market recession continued to ring in the sky. From technology giants to consumer companies, U.S. companies are downsizing in response to a potential recession, including Intel, Goldman Sachs, Bank of America, Morgan Stanley and BuzzFeed on Tuesday. information.
Wall Street Journal (WSJ) reporter Nick Timiraos, known as the Fed’s megaphone, wrote an article on Monday that Fed officials have clearly hinted that they plan to raise interest rates by 2 yards (50 basis points) next week, but because wage pressures remain high , the highest interest rate in the United States next year may rise to more than 5% in order to curb high inflation.
The Bank for International Settlements (BIS) pointed out in its latest quarterly report released on Tuesday that in recent years, economies around the world have accumulated huge debts, posing challenges for central banks to deal with inflation.
The novel coronavirus pneumonia (COVID-19) global epidemic continues to spread. Before the deadline, the Johns Hopkins University (Johns Hopkins University) data pointed out that the number of confirmed cases worldwide has exceeded 645 million, and the number of deaths has exceeded 6.64 million. More than 12.7 billion doses of vaccines have been administered in 184 countries around the world.
The performance of the four major US stock indexes on Tuesday (6th):
Focus stocks
The five kings of science and technology are led by Meta to kill. Meta (META-US) plummeted 6.79%; Apple (AAPL-US) down 2.54%; Alphabet (GOOGL-US) down 2.51%; Microsoft (MSFT-US) down 2.03%; Amazon (AMZN-US) down 3.03%.
Dow JonesMore than half of the constituent stocks closed black. Disney (DIS-US) down 3.79%; Boeing (BA-US) fell 3.6%; Chevron (CVX-US) down 2.58%; Goldman Sachs (GS-US) down 2.32%; UnitedHealth (UNH-US) rose 0.8%.
fee halfConstituent stocks fell into a sea of blood. NVIDIA (NVDA-US) down 3.75%; Applied Materials (AMAT-US) fell 1.62%; Texas Instruments (TXN-US) down 1.72%; Micron (MU-US) down 0.67%; Intel (INTC-US) down 1.95%; Qualcomm (QCOM-US) down 2.85%; AMD (AMD-US) down 4.55%.
All ADRs of Taiwan stocks fell. TSMC ADR (TSM-US) fell 2.52%; ASE ADR (ASX-US) fell 1.04%; UMC ADR (UMC-US) fell 2.58%; Chunghwa Telecom ADR (CHT US) fell 0.19%.
Corporate News
TSMC, the leading wafer foundry, announced on Tuesday that the Arizona wafer plant in the United States has begun construction of the second phase of the project, which is expected to begin production of 3-nanometer process technology in 2026. One of the largest foreign direct investment cases.
TSMC ADR (TSM-US) fell 2.52% to US$79.56 per share, with a discount or premium of 1.98% and a conversion price of 487.46 yuan. Previously, foreign media reported that TSMC sent a letter to Washington in November, mentioning six major pain points, including the high construction cost of the Arizona fab, manpower shortage, and difficulty in complying with US federal regulations.
apple (AAPL-US) shares were down 2.54% to $142.91 per share. Apple Chief Executive Tim Cook (Tim Cook) confirmed on Tuesday at TSMC’s “onboard ceremony” at TSMC’s new plant that Apple will purchase chips made at TSMC’s Arizona fab.
Intel (INTC-US) fell 1.95% to $28.60 per share. Intel CEO Pat Gelsinger is expected to meet with Acer, ASUS and other OEM factory executives in Taiwan on Tuesday and Wednesday, and has no schedule to meet with TSMC executives. Meanwhile, Intel confirmed Tuesday that the company has begun layoffs and furloughed workers.
BuzzFeed (BZFD-US) fell 6.14 percent to $1.07 a share. BuzzFeed CEO Jonah Peretti said the company announced a 12 percent layoff to cut costs amid challenging overall economic conditions.
Morgan Stanley (MS-US) fell 2.56% to $87.51 per share. Morgan Stanley has cut about 2 percent of its global workforce, or about 1,600 jobs, sources familiar with the matter said on Tuesday, following layoffs at Goldman Sachs Group Inc and Citigroup Inc.
microsoft (MSFT-US) closed up 2.03 percent at $245.12 a share. Citing sources, The Information reported on Tuesday that Microsoft has recently considered developing a “super app” that could include shopping, messaging, news and web search services.
Boeing (BA-US) fell 3.60% to $178.43 per share. Rival Airbus announced on Tuesday that due to supply chain disruptions, the company only delivered 68 commercial aircraft in November, and will give up its goal of delivering 700 aircraft for the whole year, but it is not expected to be significantly lower than this estimate.
Wall Street Analysis
Jonathan Krinsky, chief strategist at BTIG, pointed out that after the S&P fell 1.79% on Monday, it happened to coincide with the 200-day moving average. From the perspective of technical analysis, US stocks are about to usher in a sharp drop.
Dan Niles, founder and senior portfolio manager of the hedge fund The Satori Fund, predicts that there will be a last wave of rebound in US stocks between now and Christmas, but after Christmas, companies will release unexpected negative news and trigger a new wave of selling. Will retest and break new lows in 2023.
The numbers are all updated before the deadline, please refer to the actual quotation