The latest U.S. data showed signs of cooling in the labor market, alleviating market concerns about future interest rate hikes by the Federal Reserve (Fed).dollar indexgo lower.
before the deadline,Dow Jones Industrial Averagerose more than 250 points or nearly 0.8%,Nasdaq Composite Indexrose more than 160 points or nearly 1.6%,S&P 500 Indexup nearly 1.2%,Philadelphia SemiconductorThe index rose nearly 2.3 percent.
The latest data released by the US Department of Labor on Thursday showed that the number of people claiming unemployment benefits continued to rise to 225,000 last week, in line with market expectations, an increase of 9,000 from the previous value of 216,000, but still close to historical lows. The data revealed that the job market remained resilient despite tentative signs of cooling after the Fed aggressively tightened monetary policy.
As the year draws to a close, investors are once again paying attention to the risks posed by the spread of COVID-19. As China relaxes its anti-epidemic policy and opens up outbound travel, the United States said it will require Chinese passengers to show a negative test certificate for the new coronavirus before entering the country, and Italian health officials will also conduct virus screening for Chinese passengers. On the flight, nearly half of the passengers were found to be infected with the new crown virus.
Meanwhile, India will reintroduce new coronavirus screenings for travelers from some major Asian countries, including China, on Jan. 1, amid fears of a new wave of infections at home. On the other hand, Hong Kong has further lifted testing restrictions on group gatherings and inbound passengers.
Global stock markets have lost a fifth of their value this year, the biggest annual drop since 2008. Additionally, a global bond index plunged 16% amid rising inflation and rising interest rates.
The US housing market data released recently showed that the Fed’s aggressive interest rate hikes had an impact on the real estate market. US pending home sales fell for the sixth consecutive month in November, falling to the second lowest on record. Borrowing costs have roughly doubled since the start of the year and defense sales have fallen for months.
As of 22:00 on Thursday (29th) Taipei time:
Focus stocks:
Tesla (TSLA-US) rose 4.5 percent to $117.78 a share in early trade
Shares of Tesla, the leader in electric vehicles in the United States, rose nearly 5% before the market, after Morgan Stanley analyst Adam Jonas said in the latest report that Tesla’s stock price plunge has created an opportunity for investors. Jonas maintained his “overweight” rating on Tesla stock, but lowered his target price from $330 to $250 per share, and lowered his bull and bear market targets to $440 from $500 per share and $150 per share, respectively. and $80.
Goldman Sachs (GS-US) rose 0.20% to $341.54 per share in early trade
Goldman Sachs Chief Executive David Solomon said in a year-end address to the firm’s employees that the firm is studying a new round of job cuts and will announce them within weeks. Su Dewei said that the company’s business is affected by a large number of factors, including tightening monetary conditions and a slowdown in economic activity, and the Goldman Sachs team must prepare for a new round of headwinds.
Southwest Airlines (LUV-US) rose 0.62% to $32.39 a share in early trade
Southwest Airlines remains on investor radar as it struggles to recover from problems that have led to thousands of flight cancellations over the past week. Southwest Airlines shares edged up nearly 0.2 percent pre-market after falling 11 percent in the past.
Today’s key economic data:
- The number of people claiming unemployment benefits in the United States reported 225,000 last week, 225,000 expected, and the previous value was 216,000
- The number of Americans continuing to receive unemployment benefits last week was reported at 1.71 million, expected to be 1.686 million, and the previous value was 1.669 million
Wall Street Analysis:
Craig Erlam, senior market analyst at Oanda, said investors are entering 2023 with a cautious attitude, preparing for further interest rate hikes by the Fed and anticipating a global recession. In addition, the 180-degree change in China’s epidemic prevention policy will also bring great uncertainty to the beginning of next year.
Jeremy Siegel, a professor of finance at the Wharton School of Business at the University of Pennsylvania, said recently that as the Fed ends its efforts to fight inflation and shifts its focus to supporting economic growth, US stocks may soar 20% in the first six months of next year. In addition, he also predicted that the Fed will lower the benchmark interest rate to 2% to 3% before the end of next year.