Fed officials hawk the main index to open lower Dow Jones fell more than 250 points | Anue tycoon

The US Federal Reserve (Fed) “Eagle King” Bullard (James Bullard) reiterated the central bank’s determination to fight inflation and warned that there will be more pain ahead. day) opened lower.

before the deadline,Dow Jones Industrial Averagefell more than 250 points or nearly 0.8%,Nasdaq Composite Indexfell more than 130 points or nearly 1.2%,S&P 500 Indexfell nearly 1.2%,Philadelphia SemiconductorThe index fell more than 0.5 percent.

Before the opening of U.S. stocks, St. Louis Fed President Bullard, who holds voting rights in the Federal Open Market Committee (FOMC) this year, said that central bank policy has not yet reached a sufficiently restrictive level, so it is not enough to reduce inflation. Likely in the 5% to 7% range. The remarks are a far cry from the market’s current pricing in a top interest rate level of around 5%.

After Brad’s above remarks came out,S&P 500 Indexfutures,Nasdaq 100 index futures fell more than 1% in response, the United States 10-Year Treasury Bond YieldShort-term pull up,dollar indexContinuation of previous gains.

Investors are turning their attention to the outlook for the U.S. economy as the Fed prepares to tighten monetary policy further and the U.S. Treasury yield curve has inverted to levels not seen in 40 years. Historically, an inverted U.S. bond yield curve has meant that the U.S. economy is on the verge of recession.

With U.S. inflation just beginning to slow following hitting a multi-decade high and retail sales growing at their fastest pace since August in October, several Fed officials are sending messages that further work is needed to ease price pressures.

In terms of the labor market, the U.S. Department of Labor released the latest unemployment benefits data on Thursday. The adjusted number of initial jobless claims reported last week was 222,000, a decrease of 4,000 from the revised previous value of 226,000 and lower than market expectations of 225,000. , although the number fell slightly, it remained near record lows, showing that the labor market remains solid even as the rest of the U.S. economy cools, and a strong labor market may give the Fed reason to keep raising interest rates.

At the same time, there are other signs that the U.S. economy’s growth engine is losing steam as U.S. consumers suffer from inflation. Large U.S. retailer Target (Target) (TGT-US) reported dismal earnings recently, mainly due to the slowdown in consumer spending.

In energy, oil and copper, which are sensitive to economic growth, extended losses amid signs of a darkening outlook for demand.Separately, news emerged that officials from the European Central Bank (ECB) were considering raising interest rates slightly by 2 yards (50 basis points) next month, a move that underscored the ECB’s concerns regarding the economy and pushed the bank lower.EURexchange rate.

In other news, new Chancellor of the Exchequer Jeremy Hunt proposed a $55 billionGBP($65 billion) package of tax hikes and spending cuts, following newsGBPThe short-term depreciation once morest the US dollar was regarding 1%, and the yield of British government bonds soared by more than 8 basis points.

As of 22:00 on Thursday (17th) Taipei time:
S&P 500 Index Line Chart (Picture: Juheng.com)
Focus stocks:

Macy’s (M-US) rose 10.89 percent to $21.86 a share in early trade

Macy’s beat Wall Street analysts’ expectations last quarter and raised its profit forecast for the year. According to the financial report, Macy’s last quarter’s revenue was US$5.23 billion, slightly higher than analysts’ forecast of US$5.2 billion; adjusted earnings per share were reported at US$0.52, much higher than the expected US$0.19. Additionally, the company stuck to its revenue guidance for the year, as it faces a tougher sales backdrop this holiday season.

Kohl’s (KSS-US) rose 1.91 percent to $30.37 a share in early trade

Kohl’s withdrew its financial forecast on Thursday, mainly due to uncertainties such as the macroeconomic situation and the departure of its CEO Michelle Gass. After the news came out, the stock fell nearly 4% before the market.

Huida (NVDA-US) rose 0.8 percent to $160.38 a share in early trade

Although Nvidia’s third-quarter revenue fell 17% year-on-year to US$5.93 billion, it was still better than analysts’ forecast of US$5.77 billion. In addition, many Wall Street analysts expected the company to rebound next spring. The stock price rose more than 1% before the market. Due to weakening market demand, Huida’s fourth-quarter earnings outlook was tepid, forecasting revenue of $6 billion (±2%), compared with analysts’ estimate of $6.09 billion.

Today’s key economic data:
  • The initial value of the annualized total number of building permits in the United States in October was 1.526 million, expected to be 1.512 million, and the previous value to be 1.564 million
  • The initial value of the monthly rate of building permits in the United States in October was -2.4%, expected -3%, and the previous value was 1.4%
  • The annualized monthly rate of new housing starts in the United States in October was -4.2%, expected -1.3%, and the previous value was -1.3%
  • The annualized total of new housing starts in the United States in October was reported at 1.425 million units, expected to be 1.41 million units, and the previous value was 1.488 million units
  • The number of people claiming unemployment benefits in the United States reported 222,000 last week, 225,000 expected, and 226,000 previously
  • The number of Americans continuing to receive unemployment benefits last week was reported at 1.507 million, expected to be 1.5 million, and the previous value was 1.494 million
Wall Street Analysis:

Peter Kinsella, director of foreign exchange strategy at asset management company UBP in London, said that St. Louis Fed President Bullard’s remarks that the end point of the federal funds rate may be in the range of 5% to 7% pushed up U.S. bond yields and hit the stock market. In addition, Brad’s remarks on the feasibility of Ruan Zhuolu will also cause market concerns, because if this happens, then don’t care regarding the loose policy next year.

Sebastian Galy, senior macro strategist at Nordea Investment Funds, said the question ahead for the U.S. economy is how demand responds at a time when companies may be too aggressive in raising prices, both to preserve profit margins and to expect further inflation .


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