Fed officials released dovish signals, and the speculative buying support on the eve of key inflation data, the main US stock index struggled to rise in the last hour of late Wednesday (11th).NasdaqThe index soared more than 1.7%, closing in red for the fourth consecutive trading day, the longest winning streak since September 12 last year. The S&P 500 index closed up more than 1.2%, breaking through the 3950 mark.
Tesla led a surge in consumer discretionary stocks on Wednesday, tech giants such as Alphabet and Microsoft rallied, and Expedia led a surge in leisure travel stocks.
The Fed’s next regular meeting will be held from January 31st to February 1st. Susan Collins, president of the Federal Reserve Bank of Boston, revealed on Wednesday that she is inclined to raise interest rates by 1 yard at this stage, but this is very dependent on data, and a smaller rate hike can give the Fed more flexibility.
Looking ahead to Thursday, investors await the release of key economic data on Thursday, which may determine the extent of the Federal Reserve’s next interest rate hike in February.
The market generally expects that the annual growth rate of the US consumer price index (CPI) in December last year will further drop to 6.5%, and the core CPI growth rate will also further drop to 5.7%. In anticipation of easing inflationary pressures, investors have relatively lowered their expectations for the Fed’s hawkishness.
Airline stocks were also in the spotlight following the Federal Aviation Administration (FAA) ordered all U.S. flights to be delayed due to a system that provides pilots with necessary notifications for flying. More than 8,200 flights across the U.S. have been delayed and more than 1,200 have been canceled, according to FlightAware, a global flight tracking website.
The global new crown pneumonia (COVID-19) epidemic continues to spread. Before the deadline, the Johns Hopkins University (Johns Hopkins University) data pointed out that the number of confirmed cases worldwide has exceeded 665 million, and the number of deaths has exceeded 6.71 million. More than 12.7 billion doses of vaccines have been administered in 184 countries around the world.
On Wednesday (11th), the performance of the four major US stock indexes:
- US stocksDow Jones IndexIt gained 268.91 points, or 0.8 percent, to close at 33,973.01.
- NasdaqThe index rose 189.04 points, or 1.76 percent, to close at 10,931.67.
- S&P 500 IndexIt gained 50.36 points, or 1.28 percent, to close at 3,969.61.
- Philadelphia SemiconductorThe index rose 34.08 points, or 1.25 percent, to close at 2,755.36.
Focus stocks
Of the five kings of technology, Amazon is the best performer. apple (AAPL-US) rose 2.11%; Alphabet (GOOGL-US) rose 3.51%; Microsoft (MSFT-US) up 3.02%; Meta (META-US) down 0.075%; Amazon (AMZN-US) rose 5.81%.
Dow JonesComponent stocks generally closed higher. The Home Depot (HD-US) rose 2.61%; Goldman Sachs (GS-US) rose 1.99%; Dow Chemical (DOW-US) rose 1.97%; Verizon Communications (VZ-US) fell 1.84%.
fee halfComponent stocks closed higher hand in hand. NVIDIA (NVDA-US) rose 0.58%; AMD (AMD-US) rose 1.48%; Applied Materials (AMAT-US) rose 1.87%; Texas Instruments (TXN-US) up 0.26%; Intel (INTC-US) rose 1.39%; Qualcomm (QCOM-US) rose 1.27%; Micron (MU-US) rose 1.49%.
Taiwan stocks ADR only Chunghwa Telecom received black. TSMC ADR (TSM-US) rose 0.63%; ASE ADR (ASX-US) up 0.72%; UMC ADR (UMC-US) rose 0.54%; Chunghwa Telecom ADR (CHT US) fell 0.24%.
Corporate News
Tesla (TSLA-US) received a dividend of 3.68% to $123.22 per share. Tesla reported that it was close to reaching a preliminary agreement to build a factory in Indonesia, with the goal of producing 1 million electric vehicles per year. In addition, Tesla has submitted an application to the Texas regulatory authority. The company plans to spend more than 700 million US dollars to expand the electric vehicle super factory in Austin, and start construction at the end of this month.
North American home furnishings chain Bed Bath & Beyond (BBBY-US) surged 68.60% to US$3.49 per share on Wednesday.
microsoft (MSFT-US) rose 3.02% to $235.77 per share. According to reports, Microsoft plans to invest $10 billion in OpenAI, the developer of the popular artificial intelligence (AI) chatbot “ChatGPT”. Investment bank Wedbush believes that since ChatGPT is one of the most innovative AI technologies in the industry, Microsoft is clearly active in this enterprising.
Expedia (EXPE-US) rose 4.86% to $99.24 per share. Expedia was upgraded by Oppenheimer to “Outperform” with a target price of $120 per share.
Wall Street Analysis
Ed Moya, senior market analyst at Oanda, said: “Optimism is still dominating the market, prompting U.S. stocks to gradually rise on Wednesday, and investors expect the CPI report to be released will continue to show that the trend of slowing inflation still exists.”
The earnings season is regarding to start, and FactSet analysts predict that the earnings of S&P constituents will decrease by 4.1% in the fourth quarter of 2022, the first decline since the third quarter of 2020 (annual decrease of 5.7%), and more than 31% in the same period last year The growth rate has reversed sharply.
“Earnings expectations have slipped, which may represent less chance of a worse surprise,” said Melissa Brown, global head of applied research at Qontigo.
The numbers are all updated before the deadline, please refer to the actual quotation
