The latest U.S. Federal Reserve Bank of New York manufacturing index tumbled in August, the second-largest one-month drop in the history of the data index. Coupled with the dismal economic data released by China earlier, it hit investor confidence in the market and exacerbated the recession. Concerns, the four major US stock indexes opened lower on Monday (15th).
Before the deadline,Dow Jones Industrial Averagedown nearly 50 points or 0.15%,Nasdaq Composite Indexdown more than 30 points or 0.25%,S&P 500 Indexdown 0.33%,Philadelphia SemiconductorThe index fell 0.38%.
The US New York Fed manufacturing index released the latest data before the market. The index plummeted from 11.10 in July to -31.30 in August, far worse than the market’s expected 5.50, and the decline was second only to April 2020, mainly due to orders and shipments. Volumes fell sharply, indicating a sudden plunge in demand. The data deepened fears of a recession, especially when combined with a number of underwhelming economic data from China earlier in the day.
After the announcement of the New York Fed manufacturing index, the three major U.S. stock index futures continued to decline.DowFutures fell 0.66%,S&P 500 IndexFutures fell 0.73%,that fingerFutures fell 0.55%.
China’s economic data in July were all lower than expected. Affected by the Beijing government’s anti-epidemic policy and the real estate crisis, the manufacturing and service industries were contracted. The People’s Bank of China (People’s Bank of China) unexpectedly lowered major interest rates to save the economy, including the medium-term lending facility (MLF), reverse reversal The interest rate for purchase operations was cut for the second time this year.
China’s gloomy economic data also affected some Chinese technology stocks, with Alibaba (BABA-US), Baidu (BIDU-US), Pinduoduo (PDD-US) shares fell one after another in the pre-market, which also affected the energy market, exacerbating traders’ worries about the prospect of Chinese demand. International crude oil prices once fell by more than 4%.
In other news, Yum China (YUMC-US) announced that it intends to convert the Hong Kong sophomore listing status to the main listing status. After the conversion is completed, Yum China will become a dual main listing company in Hong Kong and New York.
As of 21:00 on Monday (15th) Taipei time:
Stocks in focus:
Tesla (TSLA-US) rose 2.03% to $918.34 a share in early trade
Tesla CEO Elon Musk tweeted on Sunday (14th) that Tesla has produced more than 3 million vehicles, of which 1 million are produced at the Shanghai plant. Previously, China’s implementation of lockdown measures, coupled with a shortage of parts, affected Tesla’s car production. Musk’s latest statement shows that after the Shanghai plant was put into production in 2018 and after years of investment, the Shanghai plant is now producing a large number of new cars.
Tesla’s reported vehicle deliveries have been increasing in recent quarters, and the company said in July that it delivered 254,695 vehicles in the second quarter, up 26.5 percent from a year earlier.
ideal car (LI-US) fell 5.06% to $30.84 a share in early trade
Chinese electric car maker Li Auto announced on Monday its fiscal second-quarter 2022 financial report. Although revenue and losses were better than market expectations, the third-quarter financial forecast was far below expectations. The stock price fell more than 6% before the market. Other Chinese electric vehicles Auto stock NIO (NIO-US), Xiaopeng Motors (XPEV-US) was also dragged down.
Poshmark(POSH-US) rose 11.69% to $13.18 a share in early trade
Online fashion retailer Poshmark was favored by investment bank Barclays, which upgraded its stock rating from “neutral” to “overweight”, prompting Poshmark’s share price to rise more than 5% in premarket trading. Barclays said Poshmark would benefit from the fast-growing second-hand clothing market, especially if consumers cut back on spending during the recession.
Today’s key economic data:
- US August New York Fed manufacturing index reported -31.3, expected 5.5, the previous value of 11.1
- US August NAHB housing market index reported 49, expected 55, the previous value of 55
Wall Street Analysis:
Craig Erlam, an analyst at brokerage Oanda, said financial markets had a flat start to the week, with investors’ long-term optimism clashing with China’s economic data, adding that investors showed “as long as the Fed doesn’t raise interest rates soon, it’s going to be a problem for the current economy.” A strange willingness to turn a blind eye to reality”, but it won’t last long.