2023-06-15 20:56:31
After the S&P 500 index emerged from its longest bear market in decades, the stock market rebounded, and large technology stocks continued to lead the gains. As the Federal Reserve announced a pause in raising interest rates, the three major US stock indexes rose sharply on Thursday (15th).
Driven by the artificial intelligence (AI) boom, Microsoft closed at a record high on Thursday. The S&P closed up 1.22%, rising for a sixth straight session and its longest winning streak since Nov. 8, 2021.
In terms of data, U.S. retail sales in May rose 0.3% from April to $686.6 billion. The main reason for the slowdown in growth was that gas station sales fell 2.6% from the previous month, highlighting the impact of the Federal Reserve’s 10-degree interest rate hike. The economy is cooling.
In terms of politics and economy, the Federal Reserve announced on Wednesday that it would suspend interest rate hikes, but predicted that it may raise interest rates twice before the end of the year. Then, the European Central Bank “falconed” on Thursday and announced that it would raise interest rates by another yard to 3.5%, which is the same as in 2008. It was the highest level before the emergency rate cut in October in the financial crisis, and it is likely to continue raising interest rates in July.
Market focus will turn to the outcome of the Bank of Japan’s meeting on Friday, with officials likely to see “no need” to adjust the yield curve control (YCC) policy given improved bond market functioning.
In terms of geopolitics, U.S. Secretary of State Blinken will start a two-day visit to China on June 18. U.S. Assistant Secretary of State for East Asian and Asia-Pacific Affairs Daniel Kritenbrink said that the U.S. does not expect many breakthroughs in Blinken’s trip. However, we hope that the bilateral communication channels will be smooth and the risks will be reduced.
The European Commission has been rumored to be planning to ban equipment from Chinese suppliers Huawei and ZTE from the EU’s internal telecommunications network.
The performance of the four major indexes on Thursday (15th):
- US stocksDow Jones IndexIt gained 428.73 points, or 1.26%, to close at 34,408.06.
- NasdaqThe index rose 156.34 points, or 1.15 percent, to close at 13,782.82.
- S&P 500 IndexThey rose 53.25 points, or 1.22 percent, to close at 4,425.84.
- Philadelphia SemiconductorThe index fell 31.69 points, or 0.85%, to close at 3,708.06.
Focus stocks
The five heavenly kings of science and technology collectively ascended. Amazon (AMZN-US) up 0.55%; Meta (META-US) rose 3.10%; Apple (AAPL-US) up 1.12%; Alphabet (GOOGL-US) rose 1.15%; Microsoft (MSFT-US) rose 3.19%.
Dow JonesConstituent stocks generally closed in red. Verizon Communications (VZ-US) rose 1.99%; Amgen (AMGN-US) rose 2.77%; 3M (MMM-US) rose 1.82%; Cisco (CSCO-US) rose 1.9%; Nike (OF THE US) fell 0.4%.
fee halfMore than half of the constituent stocks closed black. Applied Materials (AMAT-US) down 0.75%; AMD (AMD-US) down 2.43%; Micron (MU-US) down 0.43%; Texas Instruments (TXN-US) up 0.55%; Qualcomm (QCOM-US) up 0.17%; Huida (NVDA-US) fell 0.80%.
Taiwan’s ADR is only weaker than TSMC. TSMC ADR (TSM-US) down 1.66%; ASE ADR (ASX-US) rose 0.22%; UMC ADR (UMC-US) rose 0.56%; Chunghwa Telecom ADR (CHT US) rose 0.17%.
Corporate News
apple (AAPL-US) received a dividend of 1.12% to US$186.01 per share, and made new breakthroughs. The stock has risen more than 48% this year, and its market value has reached US$2.93 trillion, approaching the US$3 trillion mark once more.
Tesla (TSLA-US) slipped 0.35 percent to $255.90 a share. Tesla began offering three months of free fast-charging for the Model 3 in the U.S., with the aim of clearing inventories of the model by the end of the season. Another media pointed out that Tesla’s move is to clear inventory to make way for the new Model 3.
Microsoft (MSFT-US) surged 3.19% to $348.10 per share, a record high, with a market value of nearly $2.6 trillion.
Intel (INTC-US) rose 0.67 percent to $35.82 a share. Foreign media quoted sources on Thursday as reporting that Intel will receive nearly $11 billion in subsidies from the German government to build a chip manufacturing plant in eastern Germany.
Goldman Sachs (GS-US) shares rose all the way following the opening on Thursday, but plunged into the dark at the end of the session, and closed up 0.39% to $339.74 per share. The Federal Reserve and the U.S. Securities and Exchange Commission (SEC) are investigating Goldman Sachs’ role in its acquisition of Silicon Valley Bank’s securities portfolio, foreign media reported.
Creative software company Adobe (ADBE-US) received a dividend of 2.37% to US$490.91 per share, and the stock price soared by more than 5% following hours. The company reported better-than-expected second-quarter earnings following the close on Thursday and raised its outlook for the full fiscal year.
Economic data
- The number of people claiming unemployment benefits in the United States reported 262,000 last week, 250,000 expected, and 262,000 before
- The number of Americans continuing to receive unemployment benefits last week was reported at 1.775 million, expected to be 1.761 million, and the previous value was 1.755 million
- The monthly rate of retail sales in the United States in May was reported at 0.3%, expected – 0.1%, and the previous value was 0.4%
- U.S. May core retail sales rate reported 0.1%, expected 0.1%, previous value 0.4%
- U.S. retail sales in May reported an annual rate of 1.61%, the previous value of 1.23%
- The monthly rate of the U.S. import price index in May was -0.6%, expected -0.6%, and the previous value was 0.3%
- The monthly rate of the US export price index in May was -1.9%, expected 0%, and the previous value was -0.1%
Wall Street Analysis
“The Fed shocked the market on Wednesday because they were more hawkish than the market expected in their language and forward economic forecasts,” said Chris Zaccarelli, chief investment officer at Independent Advisor Alliance.
Dylan Kremer, co-chief investment officer at Certuity, said: “The key question in the market now is, can value stocks and cyclical stocks catch up with growth stocks and technology stocks? If they can, then this momentum has the ability to help the market continue to move higher.”
Arthur Hogan, chief market strategist at B. Riley Wealth, pointed out: “In the face of bank failures, continued concerns regarding economic recession, and the expected slowdown in corporate profits, US stocks have broken doubts and rebounded this year, and inflation is expected to improve in the second half of the year. “
The numbers are all updated before the deadline, please refer to the actual quotation
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