Federal Reserve (Fed) officials have hinted that interest rates will continue to rise in the future, but they are open to slowing down the pace of interest rate hikes. Investors readjusted interest rate hike expectations and digested official speeches and corporate earnings reports. In addition, Best Buy (Best Buy) shares rose It also helped investors ease concerns regarding the impact of China’s stricter lockdown measures on the economy. Major US stock indexes were mixed on Tuesday (22nd).
before the deadline,Dow Jones Industrial Averagerose more than 200 points or nearly 0.6%,Nasdaq Composite Indexfell more than 30 points or nearly 0.3%,S&P 500 Indexup nearly 0.4%,Philadelphia SemiconductorThe index rose nearly 0.4 percent.
The market is waiting for the release of the minutes of the Fed’s November meeting and looking for the pace of the Fed’s interest rate hike. It is also assessing the impact of China’s expanding new crown epidemic blockade measures.S&P 500 IndexandNasdaq 100 index futures both traded higher,dollar indexU.S. bond yields weakened.
Fed officials have largely maintained a firm stance once morest inflation, though San Francisco Fed President Mary Daly said officials need to be mindful of delays in the transmission of policy changes, while Cleveland Fed President Loretta Mester ( Loretta Mester said she was open to slowing the pace of rate hikes.
Meanwhile, the Organization for Economic Co-operation and Development (OECD) said central banks around the world must keep raising interest rates to combat soaring and pervasive inflation, even as the global economy slumps into a marked slowdown. Unexpected spikes in prices and their impact on real incomes are hurting people around the world, and the problems caused by inflation will only worsen if policymakers don’t act, the OECD said.
On the energy front, major oil exporter Saudi Arabia said the Organization of the Petroleum Exporting Countries and its partners (OPEC+) will stick to production cuts and may take further steps to balance the market and calm market concerns regarding the impact of the global economic recession and the worsening of the new crown epidemic in China on oil demand concerns. Both international oil prices rose more than 1.5%.
In Asia, shares in Hong Kong fell as the number of daily virus infections in China climbed to near record highs. It has been reported that the COVID-19 lockdown currently affects one-fifth of China’s economy. In addition, Chinese concept stocks were mixed before the U.S. stock market.
As of 22:00 on Tuesday (22nd) Taipei time:
Focus stocks:
Best Buy (BBY-US) rose 8.06 percent to $76.54 a share in early trade
Best Buy’s third-quarter results topped Wall Street analysts’ expectations, citing strong demand for high-priced consumer electronics despite headwinds from inflation. In addition, Best Buy’s same-store sales decline in the last quarter was also smaller than market expectations, and under the condition that discounts kept store traffic, Best Buy raised its full-year financial forecast.
Zoom(ZM-US) fell 9.08% in early trade to $72.97 per share
Although the video conferencing platform Zoom Video Communications’ revenue in the last quarter was in line with expectations, the revenue growth rate hit a record low and the annual financial forecast was mixed. The news of the financial report affected its stock price and fell more than 9% before the market. Zoom’s revenue in the third quarter increased by 5% to US$1.1 billion, in line with Wall Street analysts’ expectations, and its profit per share decreased by 3.6% to US$1.07, but it was better than analysts’ expectations of US$0.84. When the earnings report was released, Zoom lowered its full-year revenue outlook, but also raised its full-year profit forecast.
Dell Technologies (DELL-US) rose 0.44 percent to $41.25 a share in early trade
Dell Technologies (Dell) performed better than market expectations in its financial report last quarter, showing a sharp drop in personal computer (PC) buying, but servers and network equipment continued to grow, mitigating the impact. However, Dell’s executives gave a conservative financial forecast for this quarter . Dell’s revenue fell 6% to $24.7 billion in the last quarter, better than analysts’ estimated revenue of $24.37 billion; net profit plummeted 93% to $241 million; adjusted EPS was $2.30, better than analysts’ estimate of $1.60 Dollar.
Today’s key economic data:
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Wall Street Analysis:
Russ Mold, director of investment at AJ Bell, said that Fed officials’ speeches have touched the market’s sensitive nerves, especially as the minutes of the November meeting are regarding to be released. Lower than expected, but will continue to raise interest rates to fight inflation.
JPMorgan strategists issued a report, urging clients not to increase exposure to risky assets, as such assets may remain under pressure. Risk assets, including technology stocks, will trade in a “range with more pronounced downside risks,” the strategist said, and that is likely to remain so until the Fed begins cutting interest rates, which may not come until “sometime next year.”