The poor performance of HCA healthcare companies and other financial reports, the prospect of aggressive interest rate hikes by the Federal Reserve, the market sentiment is depressed and uneasy, the panic index VIX surged more than 17% on Friday (22nd), jumping to a new high in a month, the dollar hit 2 Year-to-year highs, bond markets bleed, oil prices slide,U.S. stocks suffered massacre, S&P,that fingerandhalf feeThe index has reached more than 2%,Dow JonesIt plummeted by nearly 1,000 points, the worst single-day performance since October 28, 2020.
The bond market sell-off resumed on Friday, with the 2-year U.S. Treasury bond rising to nearly 2.72%.10-Year U.S. Treasury YieldIt remained above 2.9%, the highest since December 2018.
U.S. Federal Reserve Chairman Jerome Powell acknowledged on Thursday that the labor market was tight, talked regarding the benefits of a “front-end loading” strategy, and signaled support for further sharp rate hikes to curb inflation. Nomura revised up its rate hike forecast on Friday, forecasting that the Fed will raise interest rates by 3 yards each in June and July, the first time since 1994, following raising interest rates by 2 yards in May as the risk of a hard landing in the US economy increases.
According to the latest data from CME Group’s FedWatch Tool, markets are pricing in a 94 percent chance the Fed will raise interest rates by a factor of three in June, up from 70 percent on Thursday and 28 percent a week ago. U.S. stocks briefly pared losses following Cleveland Fed President Loretta Mester said Friday that he opposed a 3-yard rate hike because it would hit the U.S. economy hard.
Looking at this week,Dow JonesIt fell 1.9% for the week, the fourth consecutive weekly decline and the ninth weekly decline in the past 11 weeks.that fingerIt underperformed this week, falling 3.8% for the week, and the S&P fell 2.8% for the week, extending its third weekly decline.
The global epidemic of new coronary pneumonia (COVID-19) continues to spread. Before the deadline, data from Johns Hopkins University in the United States pointed out that the number of confirmed cases worldwide has exceeded 508 million, and the number of deaths has exceeded 6.21 million. More than 11.5 billion vaccine doses have been administered in 184 countries worldwide.
The performance of the four major U.S. stock indexes on Friday (22nd):
- US stocksDow JonesIt tumbled 981.36 points, or 2.82 percent, to end at 33,811.4.
- NasdaqThe index tumbled 335.36 points, or 2.55 percent, to end at 12,839.29.
- S&P 500 IndexIt fell 121.88 points, or 2.77%, to end at 4,271.78 points.
- Philadelphia SemiconductorThe index tumbled 68.9 points, or 2.25 percent, to end at 2,989.8.
Focus stocks
The five kings of science and technology fell together. apple (AAPL-US) fell 2.78%; Meta (formerly Facebook) (FB-US) fell 2.11%; Alphabet (GOOGL-US) fell 4.15%; Amazon (AMZN-US) fell 2.66%; Microsoft (MSFT-US) fell 2.41%.
Dow JonesConstituent stocks were wiped out. Pioneering Heavy Industries (CAT-US) fell 6.55%; Verizon Communications (VZ-US) fell 5.64%; Nike (US-US) fell 4.72%; Goldman Sachs (GS-US) fell 4.35%; Visa (V-US) fell 3.83%.
half feeConstituents were blood-stained. NVIDIA (NVDA-US) fell 3.31%; Qualcomm (QCOM-US) fell 2.42%; AMD (AMD-US) fell 1.90%; Intel (INTC-US) fell 2.02 percent; Applied Materials (AMAT-US) fell 2.50%; Micron (MU-US) fell 2.13%; Texas Instruments (TXN-US) fell 2.21 percent.
Taiwan stock ADR only Chunghwa Telecom was spared. TSMC ADR (TSM-US) fell 2.03%; ASE ADR (ASX-US) fell 1.04%; UMC ADR (UMC-US) fell 1.49%; Chunghwa Telecom ADR (CHT US) rose 0.02%.
Corporate News
HCA Healthcare Corporation (HCA-US) plunged 21.82% to $210.64 per share, dragging down the healthcare sector, with UnitedHealth (UNH-US) 3.07%. HCA Healthcare reported mixed results and revised down its full-year forecast amid the pandemic and rising costs.
American clothing and accessories retailer Gap (GPS-US) plunged 18.04% to $11.72 per share. Gap on Friday cut its sales forecast for the first quarter of fiscal 2022, citing “execution challenges” at its Old Navy business, and announced that chief executive Nancy Green would step down this week.
American Express (AXP-US) fell 2.80% to $180.54 a share with the broader market, as American Express reported first-quarter profit that topped Wall Street expectations, helped by strong spending by its global cardholders as consumer demand for travel and entertainment returned to pre-pandemic level.
Twitter (TWTR-US) bucked the trend and rose 3.95% to $48.93 per share. Musk, the world’s richest man, has created three new X Holdings holding companies as a prelude to his acquisition of Twitter.
Chinese concept stocks generally outperformed the broader market, JD.com ADR (JD-US) rose 2.64%, Alibaba ADR (BABA-US) rose 0.52%. The United States continues to include Chinese stocks on the list of preparations for delisting, but the China Securities Regulatory Commission pointed out that the negotiations between the United States and China are progressing very smoothly, and it is believed that the uncertainty of the audit manuscript will be removed soon.
Economic data
- US April Markit manufacturing PMI initial value, expected 58, the previous value of 58.8
Wall Street Analysis
JOHN LYNCH, chief investment officer at COMERICA Wealth Management, said the combination of Ball’s hawkish comments and some disappointing earnings news left investors overwhelmed ahead of the weekend. Additionally, the soaring U.S. Treasury-balanced inflation rate provides stronger evidence than news for the possibility of persistent price pressures.
Stephen Massocca, senior vice president at WedBush Securities, said the market is concerned that inflation will prompt central banks to tighten monetary policy further, faster than investors expected, which will have a negative impact on asset pricing, including stocks, and now everyone sees inflation starting. Impact on corporate earnings, and more generally.
Jamie Cox, a managing partner at Harris Financial Group, said the market was very nervous regarding the growing possibility of a policy error by the Fed. When officials suggested a 50 basis point rate hike, the market immediately started trying to price in a 75 basis point, which is crazy. Most investors are better off ignoring the pricing madness and waiting for what happens to interest rates.
The figures are updated before the deadline, please refer to the actual quotation.
