After the Federal Reserve (Fed) announced on Wednesday (16th) that it would raise interest rates for the first time in more than three years, Russia (17th) on Thursday (17th) played down the progress of peace talks with Ukraine, and oil prices soared above $100 a barrel, the dollar Falling, U.S. stocks opened lower in early trading, but fortunately, led by energy stocks,Dow JonesIt rose more than 410 points and closed in the red for four consecutive trading days. The S&P rose 1.23%, the best performance for three consecutive trading days since November 2020.
In political and economic news, global central banks are turning to tightening monetary policy. After the Federal Reserve (Fed) announced that it would start raising interest rates, the Bank of England raised interest rates for the third consecutive month, because it is expected that the conflict between Russia and Ukraine will keep inflation at a higher level. For a long time, European Central Bank (ECB) President Christine Lagarde reiterated that the process of raising interest rates will be gradual.
U.S. President Joe Biden will meet with Chinese leader Xi Jinping on Friday to discuss issues such as the Ukraine-Russian war and U.S.-China competition.
The U.S. House of Representatives voted on Thursday to pass a bill to support the Biden administration to end permanent normal trade relations with Russia and Belarus (the most-favored-nation treatment), which will be submitted to the Senate for a vote. .
Negotiations between Ukraine and Russia are still going on. The Ukrainian side has stated that it does not accept the neutral model of Sweden or Austria, and has not yet signed an agreement. Earlier, it was reported that the Ukrainian-Russian negotiation had made a major breakthrough, and a 15-point peace consensus had been reached. Putin’s spokesman responded that the report was wrong and accused Kyiv of delaying the negotiation.
As Russia is subject to economic sanctions by Western countries, the International Monetary Fund (IMF), the World Bank (World Bank), and various credit rating agencies have warned of the risk of Russia’s foreign debt default. Russia announced on Thursday that it has paid 2 US dollar international bonds. The coupons due on the 16th, totaling regarding $117 million, temporarily avoided the first foreign debt default in more than 100 years.
Before the deadline, according to data from Johns Hopkins University in the United States, the number of confirmed cases worldwide has soared to more than 464 million, and the number of deaths has exceeded 6.06 million. More than 11 billion doses of vaccines have been administered in 184 countries worldwide.
The performance of the four major U.S. stock indexes on Thursday (17th):
- US stocksDow JonesUp 417.66 points, or 1.23 percent, to settle at 34,480.76.
- NasdaqThe index rose 178.23 points, or 1.33 percent, to end at 13,614.78.
- S&P 500 IndexUp 53.81 points, or 1.23 percent, to settle at 4,411.67.
- Philadelphia SemiconductorThe index gained 24.48 points, or 0.73 percent, to end at 3,364.55.
Focus stocks
The five kings of science and technology have collectively ascended. Apple (AAPL-US) 漲 0.65%; Meta (FB-US) rose 2.07%; Alphabet (GOOGL-US) rose 0.42%; Amazon (AMZN-US) rose 2.70%; Microsoft (MSFT-US) rose 0.28%.
Dow JonesNearly all of the constituent stocks rose, except for McDonald’s and Verizon Communications. Dow Chemical (DOW-US) rose 5.37%; American Express (AXP-US) rose 3.52%; the development of heavy industry (CAT-US) rose 2.6 percent; McDonald’s (MCD-US) fell 0.28%; Verizon Communications (VZ-US) fell 0.25%.
half feeConstituent stocks received more dividends. Micron (MU-US) rose 1.07%; Nvidia (NVDA-US) rose 1.10 percent; Applied Materials (AMAT-US) rose 1.16 percent; Qualcomm (QCOM-US) rose 1.58%; Intel (INTC-US) rose 1.09%; AMD (AMD-US) fell 3.19%.
Taiwan stock ADR Qi Yang. TSMC ADR (TSM-US) rose 0.76%; ASE ADR (ASX-US) rose 1.90%; UMC ADR (UMC-US) rose 0.75%; Chunghwa Telecom ADR (CHT US) rose 0.38%.
Corporate News
Amazon (AMZN-US) rose 2.70 percent to $3,144.78 a share. Amazon announced Thursday that it has completed its $8.5 billion acquisition of MGM (MGM-US), hoping to attract consumers through more streaming audio and video content.
Tesla (TSLA-US) rose 3.73 percent to $871.60 a share.Tesla raises price of China-made Model Y to 316,900 yuan on ThursdayRMB (regardingNew Taiwan Dollar 1.41 million), which is the third time Tesla has raised the price of electric vehicles in a week.
Occidental Petroleum (OXY-US) surged 9.47% to $58.01 per share. Berkshire Hathaway, who is in charge of “stock god” Buffett, has been buying Occidental Petroleum, a large energy company, recently, holding nearly 15% of the shares as of the 16th.
JPMorgan (JPM-US) rose 1.26 percent to $140.15 a share, and Citigroup (C-US) rose 0.86 percent to $57.29 a share. Foreign media quoted sources as saying that JPMorgan Chase has processed funds earmarked to pay interest due on Russian government dollar bonds and transferred the funds to Citigroup.
China concept stocks fell on Thursday, Alibaba ADR (BABA-US) fell 4.39% and JD.com ADR (DJ-US) fell 3.34%. The market has reported that the China Securities Regulatory Commission is considering allowing U.S. officials to view company documents that do not involve sensitive data, in order to defuse the risk of delisting Chinese concept stocks listed in the United States.
Economic data
- U.S. March Philadelphia Fed manufacturing index reported 27.4, expected 14.8, the previous value of 16
- The annualized total of new housing starts in the United States in February reported 1.769 million units, an expected 1.7 million units, and the previous value of 1.638 million units
- The annualized monthly growth rate of new housing starts in the United States in February was 6.8%, expected 3.8%, the previous value – 4.1%
- The annualized total of building permits in the United States in February reported 1.859 million units, expected 1.85 million units, and the previous value of 1.899 million units
- The annualized monthly growth rate of building permits in the United States in February was -1.9%, expected -2.4%, and the previous value was 0.7%
- The monthly rate of U.S. industrial production in February was 0.5%, expected to be 0.5%, and the previous value of 1.4%
- The number of people receiving unemployment benefits in the United States for the week (as of March 12) reported 214,000, expected 220,000, and the previous value of 229,000
- The number of people receiving unemployment benefits in the United States this week (as of March 5) reported 1.419 million, expected 1.48 million, and the previous value of 1.494 million
Wall Street Analysis
Fawad Razaqzada, an analyst at ThinkMarkets, said that market sentiment continues to be driven almost entirely by geopolitics and will soon forget or ignore everything else, as on Wednesday, the market had been eager to bounce back on any positive news, but then as investors realized U.S. stocks sold off early on Thursday as Ukraine and Russia remained far apart on a ceasefire and an end to the war.
Ryan Detrick, chief market strategist at LPL Financial, said: “The Fed hasn’t moved too far, they lowered their 2022 growth forecast on Wednesday, and they also raised their inflation forecast, and overall they still see strong economic growth. , which helps support the recovery.”
David Wagner, portfolio manager at Aptus Capital Advisors, expects some form of inversion in the U.S. Treasury yield curve, which will fuel more recession speculation.
Jim Paulsen, chief investment strategist at the Leuthold Group, said the stock market rally might be related to technical factors. The Fed’s rate hike path is in line with market expectations, which is like a buy signal that has been waiting for six months.
(The figures are updated before the deadline, please refer to the actual quotation)
