Major US stock indexes opened lower on Tuesday (6th), as investors in the previous trading day were worried that the US Federal Reserve (Fed) may maintain its tightening policy for a longer period of time, causing selling. before the deadline,Dow Jones Industrial Averagefell more than 100 points or nearly 0.3%,NasdaqThe Composite Index fell nearly 90 points or nearly 0.8%.S&P 500 Indexfell more than 20 points or nearly 0.5%,Philadelphia SemiconductorThe index fell more than 1%.
Previous data reports have shown that the U.S. economy remains resilient and inflation is still at its peak. The two factors mean that the Fed’s tightening cycle may continue for a longer period of time, while futures markets and economists suggest that the Fed needs to push interest rates higher. Higher than previously estimated. The news offset investor optimism about China’s reopening.
In terms of US stocks,S&P 500 IndexStill on track for its biggest fourth-quarter gain since 1999, even though the index lost some steam in December after a stellar rally. So far this month,S&P 500 IndexIt has fallen about 2%.
The rise in U.S. Treasury yields took a break, with U.S. 10-Year Treasury Bond YieldIt slipped about 3 basis points to 3.55 percent after Monday’s strong U.S. services sector data fueled speculation the Fed would raise interest rates, pushing yields above 35 percent.
The interest rate futures market shows that the current forecast of the Fed’s terminal interest rate falls in the range of 5% to 5.25%. The probability is 20.6%.
Fed officials have entered a period of silence, after they strongly hinted at a meeting on December 13th and 14th that they would reduce interest rate hikes to 2 yards, after raising interest rates 4 times in a row by 3 yards. In addition, officials also said that the end-point interest rate may be higher than expected in September. The current interest rate is 3.75% to 4%, while the Fed’s estimated interest rate end-point for next year is 4.6%.
At the same time, China announced the removal of COVID-19 testing requirements in most public places, a move seen as a step toward exiting its zero-zero policy. Most Chinese concept stocks rose before the market, Alibaba (BABA-US), Jingdong (JD-US), Baidu (BIDU-US) both rose more than 1.5%, while the new car maker NIO (NIO-US), Xpeng Motors (XPEV-US), Ideal Car (LI-US) rose 1.41%, 1.5%, and 1.99% respectively before the market.
As of 22:00 on Tuesday (6th) Taipei time:
Focus stocks:
JPMorgan (JPM-US) rose 2.02 percent to $134.03 a share in early trade
Morgan Stanley upgraded JPMorgan to “overweight” from “underweight,” citing factors including growing market share at JPMorgan’s consumer and community bank and rising operating leverage. . Shares of JPMorgan were up more than 1% in premarket trading.
singular (GE-US) rose 2.67 percent to $86.92 a share in early trade
Wall Street investment bank Oppenheimer is bullish on General Electric’s aerospace and power businesses, among other factors, and upgraded the stock to “outperform” from “perform” (perform) with a price target of 104 per share. Dollar.
Royal Caribbean International (RCL-US) fell 1.77% in early trade to $58.37 per share
Royal Caribbean International (Royal Caribbean International) fell more than 2% in premarket, mainly because JPMorgan Chase & Co. downgraded the company’s stock rating from “overweight” to “underweight”. Although JPMorgan Chase’s analyst report is generally optimistic about the prospects of Royal Caribbean International Cruise Line, analysts pointed out that considering the company’s vulnerability to the negative impact of financing markets, its promised future financial goals are worrying.
Today’s key economic data:
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Wall Street Analysis:
Invesco (Invesco) Chief Investment Strategist Kristina Hooper said that the stock market in December is still affected by the Fed, and the downward revision of corporate earnings may exert downward pressure on the stock market. Therefore, there will be large fluctuations in US stocks this month, although the stock market is higher in the past experience.
Risk assets could take some form of news if the Beijing government moves closer to easing coronavirus containment measures, boosting investor optimism that China will reopen next year, Mizuho interest rate strategists wrote in a note to clients. degree of positive impact.