Major U.S. indexes tumbled last week. After the worst performance in 20 years in September, the fourth quarter started higher on Monday (3rd), but electric car leader Tesla delivered less vehicles last quarter than market expectations, and its shares fell more than 7%, the stock’s decline also limited growth and technology stocks.NasdaqIndex rises.
Before the deadline,Dow Jones Industrial Averagerose more than 350 points or nearly 1.25%,Nasdaq Composite Indexrose nearly 90 points or nearly 0.9%,S&P 500 Indexrose nearly 1.1%,Philadelphia SemiconductorThe index rose nearly 2 percent.
Global markets remain jittery about the economic impact of monetary tightening after central banks such as the U.S. Federal Reserve reaffirmed their determination to contain runaway inflation. Traders have reduced bets on the Fed to raise interest rates, believing that the federal funds rate will peak in March next year, and they are also waiting for the September non-farm payrolls data released on Friday (7th) to find information on the economy and the Fed’s rise. clues to the information path.
The British government’s policy has taken a major turn, canceling the tax cut plan for high-income earners. Chancellor Kwasi Kwarteng tweeted that he “did not proceed” with removing the top 45% income tax rate, saying it had become a “distraction”.after the newsGBPAgainst the dollar, it rose 1% in the short-term, and the gain narrowed to 0.67% before the press time, at $1.1235.
Another spotlight was Credit Suisse, which was the most speculated institution after Wall Street reported that a major bank was on the verge of bankruptcy. Since the beginning of this year, affected by a series of bad news, the stock has fallen by 60% this year.
Credit Suisse shares hit record lows last week and the credit default swap index (CDS) climbed about 15 percent to its highest level since 2009, raising concerns about the bank’s financial health.
In terms of energy, international oil prices were affected by the news that the Organization of the Petroleum Exporting Countries and its partners (OPEC+) may announce a daily production cut of more than 1 million barrels this week. The West Texas crude oil futures due in November traded above $83 a barrel. , while the Nov.Brent CrudeFutures approached $90 a barrel, also fueling further inflation concerns.
As of 21:00 on Monday (3rd) Taipei time:
Stocks in focus:
Tesla (TSLA-US) fell 7.13% to $246.34 a share in early trade
Tesla, a major U.S. electric car maker, delivered 343,830 vehicles globally last quarter, breaking a record but still falling short of analysts’ expectations. Tesla warned that there are still challenges in the delivery of vehicles, showing that supply chain chaos is still a major problem. Tesla shares fell more than 4% on the news in premarket trading.
Credit Suisse (CS-US) fell 4.34% to $3.75 a share in early trade
Credit Suisse’s credit default swap (CDS) spreads soared on Friday, after top executives reassured big clients, traders and investors over the weekend that the bank’s liquidity and funding position were safe. In response to market concerns about Credit Suisse’s financial soundness.
CDS is a derivative commodity contract for investors to avoid credit risk. The spread of CDS has skyrocketed, highlighting that investors are worried about Credit Suisse’s financial situation.
Robin Hood (HOOD-US) fell 2.78% to $9.82 a share in early trade
Robinhood Markets announced the closure of five more offices as part of a restructuring plan in August. But with Robinhood closing several offices, its restructuring charges will climb to a range of $90 million to $150 million, up from a previous estimate of $45 million to $60 million.
Today’s key economic data:
- The final value of the US Markit manufacturing PMI in September was 52, 51.8 was expected, and the previous value was 51.5
- The U.S. September ISM manufacturing index reported 50.9, expected 52.2, and the previous value of 52.8
Wall Street Analysis:
Colin Asher, senior economist at Mizuho Bank in London, said the Fed was aggressively trying to tighten financial conditions, and a weak stock market was one way to do that, with inflation still high and central banks afraid to let go.