With the resurgence of the domestic epidemic in China and the U.S. expanding restrictions on the supply of AI chips to China and Russia, the major U.S. stock indexes opened lower on Thursday (1st) under the influence of many bad news. While U.S. Treasury yields continued to climb, big tech stocks attracted some bargain-hunting capital, with the four major indexes ending mixed.
Dow JonesClosed in the red by nearly 150 points, the S&P rose 0.3%, ending a four-day losing streak. Huida plunged 7.67%, TSMC ADR fell more than 2%,half feefell 1.92%,that fingerIt closed down 0.26%, extending losses for a fifth straight session.
On the data front, the labor market remains strong and improved manufacturing activity will support the Fed’s continued plans to raise interest rates. The U.S. Labor Department announced on the 1st that the number of Americans filing for unemployment benefits for the first time last week fell for the third consecutive week to a two-month low.
The U.S. ISM manufacturing index held steady at 52.8 in August, the same as the previous value, indicating that manufacturing grew moderately and supply constraints eased further despite a shift in spending to services, with rising interest rates and declining business confidence increasing recession risks.
Political and economic news, the market is waiting for the release of the US non-farm payrolls data in August, which may lay the foundation for the Federal Reserve to raise interest rates by 3 yards in September. people.
First Solar, Toyota, Honda and Corning and Micron have announced plans to expand investment and build new plants in the United States as signs of easing inflation emerge and the Chip Act is enacting legislation. “The big announcements by these companies this week regarding new investments and new jobs alone are a direct result of my economic plan,” Biden said.
The latest poll by the Wall Street Journal showed that Biden’s political satisfaction increased by 3 percentage points to 45%, indicating that the Democratic Party’s midterm election prospects have improved.
In addition, the European Commission is considering a range of measures aimed at tackling the energy crisis and soaring costs, including windfall profits taxes on energy companies and price caps on renewable, nuclear or coal power generation.
Finance ministers from the Group of Seven (G7) nations will meet on Friday (2nd) to discuss imposing a price cap on Russian oil to reduce Russian oil revenues and push global energy prices down. Russian Deputy Prime Minister Alexander Novak responded on Thursday that Russia will stop supplying crude oil and petroleum products to companies or countries that set price caps for Russian oil.
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 603 million, and the number of deaths has exceeded 6.49 million. More than 12.6 billion vaccine doses have been administered in 184 countries worldwide.
The performance of the four major U.S. stock indexes on Thursday (1st):
Focus stocks
The five kings of technology are only Microsoft. apple (AAPL-US) rose 0.47%; Meta (META-US) rose 1.49%; Alphabet (GOOGL-US) rose 1.40%; Amazon (AMZN-US) rose 0.83%; Microsoft (MSFT-US) fell 0.41%.
Dow JonesMore than half of the constituents closed in the red. Johnson (JNJ-US) rose 2.48%; Merck (MRK-US) rose 2.1 percent; Amgen (AMGN-US) rose 2.16 percent; Boeing (BA-US) fell 4.11%; Dow Chemical (DOW-US) fell 2.04%.
half feeConstituent stocks were broadly weak. NVIDIA (NVDA-US) plummeted 7.67%; AMD (AMD-US) fell 2.99 percent; Applied Materials (AMAT-US) fell 2.40%; Micron (MU-US) rose 1.38%; Qualcomm (QCOM-US) fell 1.78%; Intel (INTC-US) fell 0.50%; Texas Instruments (TXN-US) rose 0.58%.
Taiwan stock ADR collectively exhausted. TSMC ADR (TSM-US) fell 2.05%; ASE ADR (ASX-US) fell 2.78%; UMC ADR (UMC-US) fell 1.21%; Chunghwa Telecom ADR (CHT US) fell 0.50%.
Corporate News
Chip designers Nvidia and AMD announced on Wednesday that they had been notified by the U.S. Department of Commerce to stop supplying top-tier computing chips for artificial intelligence (AI) applications to China and Russia, weighed down by the news , Huida (NVDA-US) tumbled 7.67% to $139.37 a share on Thursday, its lowest level since April last year. Super Micro (AMD-US) closed down 2.99 percent at $82.33 a share.
Since Huida and AMD are both TSMC’s top ten customers, contributing regarding 10% of TSMC’s performance, TSMC’s ADR (TSM-US) fell 2.05% to $81.64 per share on Thursday, the conversion price was 498.58 yuan, and the discount premium rate was 1.65%
Micron Technology Corporation (MU-US) bucked the trend and rose on Thursday, closing up 1.38% at $57.31 a share. Micron said it will invest regarding $15 billion over the next 10 years in a new memory chip manufacturing plant in Boise, Idaho, where it is headquartered.
General Motors (GM-US) rose 0.92 percent to $38.56 a share. Ultium Cells, a joint venture between General Motors and South Korea’s LG Energy Solutions, has begun production at a $2.3 billion battery cell plant in Warren, Ohio.
Economic data
- U.S. initial jobless claims reported 232,000 last week, expected 248,000, and the previous value of 237,000
- The number of people receiving unemployment benefits in the United States reported 1.438 million last week, 1.438 million is expected, and the previous value was 1.412 million
- U.S. non-farm productivity revision in the second quarter reported – 4.1%, expected – 4.5%, the previous value – 4.6%
- U.S. non-farm unit labor costs revised to 10.2% in the second quarter, expected 10.7%, and the previous value of 10.8%
- US August S&P Global Manufacturing PMI final value was 51.5, expected 51.3, the previous value of 51.3
- US August ISM manufacturing index reported 52.8, expected 52, the previous value of 52.8
- U.S. construction spending in July reported a monthly rate of 0.4%, expected -0.4%, the previous value -0.5%
Wall Street Analysis
Investment bank Jefferies commented: “The labor market is still very tight, and the initial jobless claims data do not show any change in momentum.”
Paul Gruenwald, chief economist at S&P Global, said: “Investors are advised to focus on the labor market, and if the labor market starts to weaken, consumer confidence will also weaken, which will be a very strong indication that the economy may enter a recession. hint.”
Wall Street is speculating on whether stocks will challenge June lows once more in September, a historically underwhelming month for the market.
“If the stock market retests the lows, I think it will happen in September, and in some cases it will be worse than June 16,” said SoFi analyst Liz Young.
The figures are updated before the deadline, please refer to the actual quotation.
