With the Federal Reserve continuing to tighten monetary policy and investors waiting for more inflation and earnings data this week, the market was volatile on Monday (9th), and U.S. stocks ushered in another wave of violent selling.
The fear index VIX rose above 34, well above the long-term average (regarding 20), Wall Street risk aversion is strong, the dollar is higher,10-Year U.S. Treasury Yieldhit its highest level since late 2018,bitcoinPrices are 55% lower than their all-time highs, crude oil falls, energy stocks collapse, giving back recent gains, and the five tech giants all the way down,Dow JonesClosing down more than 650 points,that fingerandhalf feeDropping more than 4%, the S&P fell 3.2%, unable to hold the key 4,000 mark for the first time since April 2021.
The U.S. Federal Reserve announced a 2-yard rate hike on Wednesday as expected and began to shrink its balance sheet in June. After Chairman Powell played down the possibility of a 3-yard rate hike in the future, Wall Street was closely watching the speeches of several Fed officials this week. Atlanta Federal Reserve Bank President Raphael Bostic said on Monday that raising interest rates by 2 yards is already a fairly aggressive move, and he doesn’t think the Fed needs to take more aggressive action.
U.S. Treasury Secretary Yellen will go to a congressional hearing on Tuesday. She pointed out in her annual financial risk speech released in advance that countries continue to work hard to deal with the new crown epidemic, global economic growth may continue to fluctuate, and Russia’s invasion of Ukraine will further exacerbate economic uncertainty. sex.
Russia celebrated its “Victory Day” on Monday, with President Vladimir Putin calling the “special military action” once morest Ukraine necessary and timely, the result of Western provocations. Earlier, the Group of Seven industrialized countries (G7) announced that they agreed to ban Russian oil imports or phase out Russian oil, while the United States for the first time included Gazprombank in sanctions.
Russia is facing its worst economic contraction since 1994 as Western countries continue to increase economic sanctions As much as 12 percent, a bigger drop than the 8 percent projected by the Russian Ministry of Economic Development.
The new crown pneumonia (COVID-19) epidemic continues to spread around the world. Before the deadline, data from Johns Hopkins University in the United States pointed out that the number of confirmed cases worldwide has exceeded 517 million, and the number of deaths has exceeded 6.25 million. More than 11.6 billion vaccine doses have been administered in 184 countries worldwide.
The performance of the four major U.S. stock indexes on Monday (9th):
Focus stocks
The five kings of science and technology were wiped out. apple (AAPL-US) fell 3.32%; Meta (formerly Facebook) (FB-US) fell 3.71%; Alphabet (GOOGL-US) fell 2.80%; Amazon (AMZN-US) fell 5.21%; Microsoft (MSFT-US) fell 3.69%.
Dow JonesConstituent stocks bleed into a river, and Boeing took the lead in killing. Boeing (BA-US) plummeted 10.47%; Chevron (CVX-US) fell 6.7%; Visa (V-US) fell 4.84%; Kaiyuan Heavy Industries (CAT-US) fell 3.89%; 3M (MMM-US) rose 1.91%.
half feeConstituent stocks also rumbled. Wolfspeed (WOLF-US) blood metrorrhagia 13.34%; AMD (AMD-US) plummeted 9.42%; NVIDIA (NVDA-US) plummeted 9.24%; Qualcomm (QCOM-US) fell 4.03 percent; Intel (INTC-US) fell 2.78%; Applied Materials (AMAT-US) fell 6.00%; Micron (MU-US) fell 3.44%; Texas Instruments (TXN-US) fell 1.50%.
Taiwan stock ADR is miserable. TSMC ADR (TSM-US) fell 4.73%; ASE ADR (ASX-US) fell 4.92%; UMC ADR (UMC-US) fell 3.96%; Chunghwa Telecom ADR (CHT US) fell 1.27%.
Corporate News
Palantir, an American software and service company famous for big data analysis (PLTR-US) avalanche 21.31% to $7.46 per share. Palantir reported first-quarter 2022 earnings before the market, with revenue of $446 million, beating consensus estimates of $443 million, and net loss narrowing to $101.4 million, or 7 cents a share, from $123.5 million, or 7 cents a share, a year earlier. Shares fell 5 cents, however, the company forecast second-quarter revenue that missed Wall Street expectations due to slower sales growth.
Twitter (TWTR-US) fell 3.69 percent to $47.96 a share. Hindenburg Research, a well-known short-selling agency, said it is shorting Twitter, and it is judged that the risk of re-pricing the deal is high. If Musk pays a “breakup fee” of $1 billion to cancel the acquisition, he can renegotiate and predict that Twitter’s market value will be from the current level. Cut directly.
Electric vehicle startup Lordstown (RIDE-US) fell 6.54% to $1.78 per share. Lordstown announced its first-quarter financial results for the 2022 fiscal year before the market on Monday. Although the loss was better than market expectations, the prospect of facing supply chain problems was difficult and the agreement with Hon Hai was still pending, dragging its shares down on Monday.
German biotechnology company BioNTech (BNTX-US) rose 3.05 percent to $140.32 a share. BioNTech posted strong first-quarter sales and earnings, but forecasts that vaccine sales may decline for the full year.
Tyson Foods, the largest meat processor in the United States (TSN-US) rose 2.22 percent to $92.84 a share. Benefiting from higher beef and chicken prices, Tyson on Monday raised its full-year sales forecast and beat first-quarter revenue forecasts.
American electric vehicle startup Rivian (RIVN-US) fell 20.88% to $22.78 per share. Rivian’s IPO holding lock-up period expires, rumors of major shareholder Ford Motor (F-US) plans to sell 8 million Rivian shares.
Philip Morris International, one of the leading companies in the global tobacco industry (PM-US) rose 0.94 percent to $99.87 a share. Philip Morris International reported on Monday that it was in talks to acquire Swedish Match AB, which is valued at at least $15 billion, and might complete the deal as soon as this week.
Economic data
- The monthly growth rate of US wholesale inventories in March was 2.3%, expected 2.3%, and the previous value was 2.8%
- The monthly growth rate of US wholesale sales in March was 1.7%, expected 1.8%, and the previous value was 1.5%
Wall Street Analysis
The S&P fell below the 4,000-point mark, and has fallen by more than 16% since the high point of the year. The market is worried that the dormant bear market may wake up. Bank of America strategists recently pointed out that if the S&P falls below 4,000 points, it may trigger a large-scale withdrawal of funds.
Maneesh Deshpande, an analyst at Barclays, predicts that the market will continue to fluctuate greatly. As the risk of stagnant inflation continues to rise, the market risk is skewed to the downside. Although the possibility of a sharp rebound in the bear market cannot be underestimated, the upside is limited.
Even if an outright recession is avoided, the outlook for U.S. stocks remains bleak, with the S&P down regarding 15% this year as high inflation data, a slowing economy and aggressive tightening by the Federal Reserve weigh on risk appetite and valuations, strategists at Goldman Sachs said.
The big question, said 22V Research founder Dennis DeBusschere, is whether inflation can drop below 3% without the Fed triggering a recession. Markets will remain in limbo until an answer is given.
The figures are updated before the deadline, please refer to the actual quotation.
