U.S. stocks opened lower on Tuesday (11th) as investors waited for U.S. corporate earnings reports to assess the impact of rising interest rates and inflation on corporate profits.
Before the deadline,Dow Jones Industrial Averagedown more than 60 points or nearly 0.22%,Nasdaq Composite Indexdown more than 100 points or 1%,S&P 500 Indexfell nearly 0.8%,Philadelphia SemiconductorThe index fell nearly 1.9 percent.
U.S. stock investors are weighing how inflation and the Federal Reserve’s hawkish policies will eat into corporate profits. U.S. Treasury yields fell for a while,US dollar indexgo down.
Meta Platforms fell in step with other large, rate-sensitive tech companies.European stocksDow Jones The 600 fell for a fifth day, with energy and technology stocks underperforming.
Fed Vice Chairman Lael Brainard and Chicago Fed President Charles Evans yesterday warned the central bank to control inflation must be cautious and avoid making the mistake of raising interest rates too much.
U.S. stock strategists are also bracing for a possible underperformance in corporate profits amid warnings of a global recession. Major U.S. banks will announce their third-quarter earnings this Friday (14th), kicking off the earnings season.
Turbulence in UK bond markets eased on Tuesday, with the Bank of England (BOE) forced to expand its emergency measures to deal with fire-sale dynamics in the bond market.U.K. 10-year Treasury yieldIt has climbed more than 50 basis points since Oct. 4, but is now down 5 basis points to around 4.4%.
Meanwhile, Russian President Vladimir Putin threatened further missile attacks on Ukraine. This comes following Russia launched its most violent airstrike since its invasion of Ukraine, with attacks on other cities including the Ukrainian capital Kyiv.
In terms of energy, the market is worried that the economy will eventually decline and drag down demand, especially in Europe and China, and international oil prices both fell.
As of 21:00 on Tuesday (11th) Taipei time:
Stocks in focus:
Meta(META-US) fell 3.6% to $128.98 a share in early trade
Meta Platforms, the parent company of Facebook and Instagram, was downgraded to “neutral” from “overweight” by Wall Street investment bank Atlantic Equities. Atlantic Securities said Meta faces increasingly challenging growth prospects due to macroeconomic headwinds. Meta shares fell 1.3% in premarket trading.
Roblox(RBLX-US) fell 3.56% to $34.14 a share in early trade
Barclays Bank pointed out in the latest report that although the US online game company platform Roblox is a beneficiary of the impact of the new crown epidemic, due to the already high market penetration rate, future operating growth may face challenges, giving the stock a “reduction” ( underweight) rating.
Lululemon (LULU-US) rose 1.16% to $293.20 a share in early trade
Sportswear brand Lululemon rose 1.4 percent in premarket trading, as Wall Street investment bank Piper Sandler upgraded its stock to “overweight” from “neutral,” citing continued good sales and the fall and winter season. ‘s outerwear sales are expected to allow the stock to outperform the broader market.
Today’s key economic data:
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Wall Street Analysis:
Michael J. Kelly, head of the multi-asset team at PineBridge Investments, said the impact of monetary policy tightening has not yet been seen, but it is here and risk assets will fall once more.
Christopher Smart, chief global strategist at Barings, said in a report that the Russian-Ukrainian conflict had investors bringing gloom into the week, especially as Ukrainian media reports pointed to further interest rate hikes due to geopolitical tensions.
