After the Federal Reserve officials expressed their hawkish interest rate hike stance, the selling pressure of US stocks continued to emerge. The panic index VIX rose to above 20 on Friday (19th), and the rise in US bond yields hit technology stocks, travel and leisure stocks. Stocks sold off sharply,bitcoinIn the flash crash, the blockchain concept stocks cannot escape the murder, and the optimistic financial forecast of the material has also failed to stop the decline of the chip stocks, and the four major indexes are exhausted.
Dow JonesIt closed at 292.3 points, the largest decline since August 2,that fingerIt fell more than 2%, the first time on July 11, and the S&P closed down 1.29%, the worst performance since June 28. For a week,Dow JonesIt fell 0.16% for the week, and the S&P fell 1.21% for the week.that fingerIt fell 2.62% for the week, halting its four-week winning streak, ending its longest weekly rally since November last year.
In terms of politics and economics, the market is waiting for next week’s annual meeting of global central banks, Jackson Hole, to make speeches, including speeches by finance ministers and central bank governors, among which Federal Reserve Chairman Jerome Powell is preparing to speak. In the spotlight, the outside world will find out Powell’s latest views on the economic outlook and quantitative tightening (QT) policy.
The Federal Open Market Committee (FOMC), including St. Louis Fed President James Bullard and Kansas Fed President Esther George, have recently reiterated that they will continue to raise interest rates to curb high inflation. . Richmond Fed President Thomas Barkin said Friday that the Fed will do everything it can to get inflation back to its 2 percent target, even if it risks a recession.
On the geopolitical front, Indonesian President Joko Widodo confirmed that Chinese leader Xi Jinping and Russian President Vladimir Putin will attend the G20 summit in Bali, Indonesia, on November 15-16, prompting an anxious and angry reaction from Western countries.
“As President Biden has publicly stated, he doesn’t think he should be at the G20 because of Putin’s war on Ukraine, but if Putin is at the G20, Ukrainian President Volodymyr Zelensky should be there,” the White House said in a statement Friday. meeting.”
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 594 million, and the number of deaths has exceeded 6.45 million. More than 12.4 billion vaccine doses have been administered in 184 countries worldwide.
The performance of the four major U.S. stock indexes on Friday (19th):
Focus stocks
The five kings of science and technology fell into one. apple (AAPL-US) fell 1.51%; Meta (META-US) fell 3.84%; Alphabet (GOOGL-US) fell 2.46%; Amazon (AMZN-US) fell 2.86%; Microsoft (MSFT-US) fell 1.39%.
Dow JonesMore than half of the constituents were lower. Boeing (BA-US) fell 3.42%; JPMorgan Chase (JPM-US) fell 2.47%; Nike (OF THE US) fell 2.46%; Salesforce (CRM-US) fell 2.21%; Johnson & Johnson (JNJ-US) rose 1.52%.
half feeAll constituents were blood stained. Micron (MU-US) fell 3.92%; AMD (AMD-US) fell 4.47%; NVIDIA (NVDA-US) fell 4.92%; Applied Materials (AMAT-US) fell 3.36%; Texas Instruments (TXN-US) fell 1.13%; Qualcomm (QCOM-US) fell 2.50%.
Taiwan stock ADRs were generally weak. TSMC ADR (TSM-US) fell 2.32%; ASE ADR (ASX-US) fell 3.04%; UMC ADR (UMC-US) fell 2.11%; Chunghwa Telecom ADR (CHT US) fell 0.81%.
Corporate News
GameStop chairman Ryan Cohen has completed clearing Bed Bath & Beyond (BBBY-US) shares, BBBY tumbled 40.54% to $11.03 a share on Friday, its biggest one-day drop in its 30-year history.
Semiconductor equipment manufacturers applied materials (AMAT-US) fell 3.36% to $104.63 a share on Friday, Applied Materials reported better-than-expected earnings last quarter and a strong revenue forecast for the current quarter, however, DA Davison analyst Thomas Diffely said: “While demand continues to outstrip supply, The current market environment remains challenging, including global supply chain constraints, slowing memory investment, and a weak consumer market.”
Occidental Petroleum (Occidental Petroleum) (OXY-US) rose sharply in intraday trading on Friday, closing up 9.88% to $71.29 a share. Buffett’s Berkshire Hathaway has been authorized by the US Federal Energy Regulatory Commission (FERC) to buy up to 50% of Occidental oil shares.
General Motors (GM-US) rose 2.53% to $39.70 a share on Friday. General Motors announced on Friday that it would resume paying a 9-cents-per-share dividend on Sept. 15, as well as restarting its treasury stock program.
Wall Street Analysis
Jose Torres, senior economist at Interactive Brokers, said: “It’s not a good policy to fight the Fed at this juncture. If the Fed should not fight it when it does quantitative easing and pushes up asset prices, why is the Fed now? Investors are fighting once morest quantitative tightening? Just as U.S. stocks experienced a very violent bear market rally in the summer, the decline might intensify in another way, especially as liquidity tightens.”
Leo Grohowski, chief investment officer at BNY Wealth Management: “We think the Fed may be surprised by any idea of an early end to tightening, and they’re likely to make more hawkish comments. There’s been a big shift in sentiment, and it may be a little bit short-term. Too complacent.”
The figures are updated before the deadline, please refer to the actual quotation.
