The latest U.S. inflation data for May increased more than expected, showing that U.S. inflation continued to rise, quelling market investors’ hopes for inflation to peak, and also causing the Federal Reserve to take more aggressive measures to open up Concerns about inflation, U.S. stocks opened lower on Friday (10th), and the four major indexes fell together.
Before the deadline,Dow Jones Industrial Averagefell more than 600 points or nearly 2%,Nasdaq Composite Indexdown nearly 300 points or nearly 2.5%,S&P 500 Indexfell more than 2%,Philadelphia SemiconductorThe index fell nearly 2 percent.
The U.S. Department of Labor announced today that the consumer price index (CPI) surged 8.6% in May compared with the same period last year, the highest since 1981. The annual increase in the core CPI, which excludes food and energy costs, was also as high as 6%. Both They were higher than market expectations of 8.3% and 5.9%, respectively, highlighting the further acceleration of inflation and aggravating the price pressure faced by consumers, threatening US economic growth.
After the data was released, U.S. bond yields soared. U.S. 2-year and 3-year bond yields soared 9 basis points and 7 basis points to 2.908% and 3.081%, the highest since November 2018. 10-year bond yields Also rose to 3.046%. The 30-year U.S. Treasury yield briefly fell below the 5-year yield, inverting the yield curve.
U.S. stock futures fell short-term,NasdaqIndex futures fell 1.5%.S&P 500 IndexFutures fell 1.3%,Dow Jones Industrial AverageFutures fell nearly 1%.in additionUS dollar indexIn the short-term, it rose 30 points, rising above 103.
European stock markets were also affected. The European Stoxx600 index fell by 2%, the French CAC40 index once fell by more than 2%, and the German DAX index fell by nearly 2%.
Inflation remains at a 40-year high despite the Fed’s tightening of monetary policy since March, and the Fed recently signaled a two-yard rate hike (50 basis points) at its meeting next week.
In addition, the fiery inflation data completely frustrated the previous market’s idea of suspending the pace of interest rate hikes to 1 yard (25 basis points) in September. As the Fed may strive to strengthen its control of inflation, the market may price the Fed to raise interest rates by two more. times, each time the rate is raised by two yards.
As of 21:00 on Friday (10th) Taipei time:
Stocks in focus:
Netflix(NFLX-US) fell 5.22% to $182.71 a share in early trade
Amid soaring inflation and increased competition, Goldman Sachs analyst Eric Sheridan downgraded Netflix stock to “sell” and slashed his price target by $79 to $186 a share. “We’re concerned about the impact of declining subscriber numbers and increased competition, and see Netflix as a proxy for homegrown content that’s less of a catalyst,” Sheridan said. “We’ve only modestly reduced the number of paid streaming subscriptions per region. “
DocuSign(DOCU-US) fell 23.91% to $66.47 a share in early trade
Electronic signature platform DocuSign reported mixed earnings last quarter. Although revenue rose 25% to $588.7 million a year, beating market expectations of $581.8 million, adjusted earnings per share were only $0.38, lower than market expectations. $0.46.
In terms of financial forecasts, although DocuSign reiterated its full-year 2023 revenue estimate of $2.47 billion to $2.482 billion, it still met the consensus of analysts polled by Refinitiv of $2.479 billion, but raised the order value from the previous estimate of $2.706 billion to $2.726 billion. US dollars, down to $2.521 billion to $2.541 billion.
Stitch Fix(SFIX-US) fell 13.37% to $6.74 per share in early trade
Stitch Fix, an online clothing brand, reported more losses than expected in the last quarter, and gave a pessimistic financial forecast, which affected the stock to fall by more than 15% before the market. In addition, Stitch Fix also said it would lay off 330 people, accounting for about 4% of the total number of employees.
Today’s key economic data:
- The annual growth rate of the US CPI in May was 8.6%, expected to be 8.3%, and the previous value of 8.3%
- The monthly growth rate of the US CPI in May was 1%, expected 0.7%, the previous value was 0.3%
- U.S. core CPI in May reported an annual growth rate of 6%, expected 5.9%, the previous value of 6.2%
- The monthly growth rate of the US core CPI in May was 0.6%, expected 0.5%, the previous value was 0.6%
- U.S. June Michigan consumer confidence index is expected to be 58, the previous value was 58.4
Wall Street Analysis:
Market Securities chief analyst Christophe Barraud said today’s report showing inflation will remain high for longer than expected could raise the odds of a two-yard (50 basis point) rate hike in September.
Greg McBride, chief financial analyst at Bankrate, said the view that inflation has bottomed was over, and any idea of the Fed slowing rate hikes after the June-July meeting looked unlikely for now.