After the Federal Reserve and the world’s major central banks “falconed” together, fears of economic recession have intensified, and hopes for a rebound at the end of the year have been shattered. U.S. stocks opened lower on Monday (19th).10-Year U.S. Treasury YieldThe largest gain since October, communication services stocks fell the most fierce, technology stocks were weak, but energy stocks bucked the trend and turned red.
Dow JonesClosed more than 160 points, the S & P fell nearly 1%,That fingerwithfee halfIt fell more than 1.3 percent, its fourth straight session of losses.
On the data front, data from the National Association of Home Builders (NAHB) showed that the U.S. housing market index, which reflects builder confidence, unexpectedly fell to 31 in December, down from 33 in November, according to data from the National Association of Home Builders (NAHB). It was lower than market expectations of 34, the lowest since June 2012. The index fell for the 12th consecutive month, the longest decline since the mid-1980s.
In terms of politics and economy, market sentiment remains sluggish due to the impact of hawkish central bank speeches. Foreign media reported on Monday that Bundesbank President Joachim Nagel pointed out in an interview that the impact of interest rate hikes may take up to two years to take effect , inflation is not expected to fall significantly until 2024.
Morgan Stanley strategist Michael Wilson, who accurately predicted this year’s stock market plunge, warned on Monday that interest rates and inflation may have peaked, but this is a warning sign of corporate profitability that can no longer be ignored. The financial tsunami continued into 2009 and caused the stock market to fall to a new low.
Despite the shadow of recession, after China announced the relaxation of anti-epidemic measures, Chinese executives recently emphasized that they will focus on boosting the economy next year, driving international oil prices higher on Monday, and energy stocks outperformed.
EU energy ministers agreed on Monday to set a “dynamic” cap on gas prices in response to the energy crisis, with European countries capping gas prices at 180 per megawatt-hour (MWh) under the latest deal. EURand will start on February 15 next year for a period of one year.
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 653 million, and the number of deaths has exceeded 6.66 million. More than 12.7 billion doses of vaccines have been administered in 184 countries around the world.
On Monday (19th), the performance of the four major US stock indexes:
Focus stocks
The five kings of science and technology fell across the board. Meta (META-US) down 4.14%; Amazon (AMZN-US) down 3.35%; Alphabet (GOOGL-US) down 2.02%; Microsoft (MSFT-US) down 1.73%; Apple (AAPL-US) fell 1.59%.
Dow JonesMore than half of constituent stocks fell. Disney (DIS-US) down 4.77%; Nike (OF THE US) down 2.74%; Home Depot (HD-US) down 1.86%; Walgreens Boots (WBA-US) and Chevron (CVX-US) all rose 0.69%;
fee halfThe constituent stocks are poured into one piece. NVIDIA (NVDA-US) down 1.91%; Applied Materials (AMAT-US) down 0.71%; Texas Instruments (TXN-US) down 1.14%; Micron (MU-US) down 0.67%; Intel (INTC-US) down 0.48%; Qualcomm (QCOM-US) down 1.68%; AMD (AMD-US) fell 1.25%.
Taiwan stock ADR received more black. TSMC ADR (TSM-US) down 0.26%; ASE ADR (ASX-US) down 0.78%; UMC ADR (UMC-US) down 1.01%; Chunghwa Telecom ADR (CHT US) up 0.33%.
Corporate News
Disney (DIS-US) fell 4.77% to $85.78 per share. Disney’s “Avatar 2: The Way of Water” grossed US$134 million at the North American weekend box office, lower than market expectations of US$175 million and Disney’s forecast of US$135 million to US$150 million.
Meta (META-US) slipped 4.14 percent to $114.48 a share. The European Commission on Monday warned Facebook’s parent company, Meta, of violating EU antitrust law for allegedly abusing its dominant position by forcing classified ads and social media to distort market competition.
Amazon (AMZN-US) tumbled 3.35% to $84.92 a share, its lowest close since March 16, 2020.
As the economy restarts after the epidemic, many consumers return to physical stores. Inflation, supply chain constraints and higher costs related to the Russia-Ukraine war have put enormous pressure on Amazon and other technology companies. Amazon’s stock price has plummeted 49% so far this year. It’s the worst year since the dot-com bust in 2000.
Intel reported that it will postpone its plan to build a fab in Magdeburg, eastern Germany, in order to obtain more subsidies from the German government. Intel (INTC-US) slipped 0.48 percent to $26.79 a share.
Tesla (TSLA-US) soared in early trading on Monday, once reaching a single-day high ($155.25 per share), and then under the long-short battle, its stock price closed down slightly by 0.24% to $149.87 per share, closing below $150 for the first time in more than two years .
Tesla CEO Musk asked on Twitter “Should he resign as the head of Twitter?” More than 17.5 million users participated in the vote, and 57.5% of them supported his resignation. Wedbush analysts believe that Twitter advertisers have avoided putting Twitter’s performance into the red, and it is estimated that the pushback may lose about $4 billion a year.
Economic data
- U.S. December NAHB housing market index reported 31, forecast 34, previous value 33
Wall Street Analysis
The Federal Reserve has raised interest rates by 17 yards since it started the rate hike cycle in March 2022. Ed Moya, senior market strategist at Oanda, pointed out that monetary policy has tightened rapidly. Now that Powell has issued a warning, the timing of interest rate hikes is expected to It will be longer, and of course the risk of recession will also increase.
“As we approach the end of December, investors are still looking ahead to the Christmas market, which comes after U.S. stocks suffered their first two-week losing streak since September,” said Chris Larkin, managing director of trading strategy at E-Trade Financial. Data showing that cooling inflation may bring short-term confidence to the market, but the Fed and Powell have firmly emphasized that interest rates may remain high for a considerable period of time, which makes many investors wait and see.”
The numbers are all updated before the deadline, please refer to the actual quotation