Soaring U.S. bond yields, geopolitical tensions, and poor financial forecasts for retail giant Wal-Mart and home furnishing giant Home Depot have led to a rise in market panic. Technology stocks took the lead.
Dow Jones IndexPlunging nearly 700 points, the worst single-day performance since December 15 last year, the S&P plunged 2%, falling below the 4,000-point mark, also the worst drop since December 15 last year,That fingerBlood collapse 2.5%,fee halfIt fell by more than 3.3%.
In terms of politics and economy, U.S. President Joe Biden made a surprise visit to Kiev, the capital of Ukraine, which is in a state of war, on Monday (20th), emphasizing the U.S. side’s firm commitment to Ukraine’s democracy, sovereignty, and territorial integrity. Russian President Vladimir Putin announced on Tuesday that he would suspend participation in the “New Strategic Arms Reduction Treaty” signed with the United States in 2010, and would resume nuclear test explosions in the future.
The Wall Street Journal reported on Tuesday, citing sources, that Chinese leader Xi Jinping plans to visit Russia for a summit with Putin in the next few months.
U.S. Treasury Undersecretary Wally Adeyemo revealed on Tuesday that the U.S. and its allies plan to impose more sanctions on Russia in the coming days, warning that multinational companies will be punished if they do business with Russia in violation of U.S. sanctions. Great price.
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 674 million, and the number of deaths has exceeded 6.86 million.
The performance of the four major US stock indexes on Tuesday (21st):
- US stocksDow JonesThe index fell 697.1 points, or 2.06%, to close at 33,129.59 points.
- NasdaqThe index fell 294.97 points, or 2.5%, to close at 11,492.3 points.
- S&P 500 IndexIt fell 81.75 points, or 2%, to close at 3,997.34.
- Philadelphia SemiconductorThe index fell 99.60 points, or 3.31%, to close at 2,906.26 points.
Focus stocks
The five kings of science and technology were wiped out. apple (AAPL-US) down 2.67%; Alphabet (GOOGL-US) down 2.71%; Microsoft (MSFT-US) down 2.09%; Meta (META-US) down 0.46%; Amazon (AMZN-US) down 2.70%.
Dow JonesAmong the constituent stocks, only Wal-Mart received dividends. The Home Depot (HD-US) plunged 7.06%; 3M (MMM-US) down 3.31%; Nike (OF THE US) down 3%; Disney (DIS-US) down 2.97%; Walmart (WMT-US) up 0.61%.
fee halfConstituent stocks collectively received black. AMD (AMD-US) down 2.20%; NVIDIA (NVDA-US) down 3.43%; Applied Materials (AMAT-US) fell 3.60%; Texas Instruments (TXN-US) down 2.60%; Intel (INTC-US) plunged 5.61%; Qualcomm (QCOM-US) down 3.15%; Micron (MU-US) down 2.39%.
ADRs of Taiwan stocks fell simultaneously. TSMC ADR (TSM-US) down 2.73; ASE ADR (ASX-US) down 2.25%; UMC ADR (UMC-US) down 0.86%; Chunghwa Telecom ADR (CHT US) fell 0.43%.
Corporate News
microsoft (MSFT-US) fell 2.09 percent to $252.67 a share. Nvidia (NVDA-US) closed down 3.43 percent at $206.55 a share. Microsoft has reached an agreement with Nvidia to keep all video games on Nvidia’s gaming platform for at least 10 years, including if it successfully acquires Activision Blizzard (Activision) in the future. Nvidia will no longer worry that Microsoft’s acquisition of other game companies may affect its cloud There are fewer games on the gaming platform.
Tesla (TSLA-US) fell 5.25% to $197.37 per share. The National Highway Traffic Safety Administration (NHTSA) announced a thorough investigation into the incident in California last Saturday when a Tesla crashed into a fire truck on the interstate, killing the Tesla driver. ) and Full Self-Driving (FSD) functional safety concerns.
Walmart and Home Depot forecast a tougher year for retail, with Walmart (WMT-US) opened lower and moved higher, closing 0.61% higher at US$147.33 per share. Home Depot (HD-US) plunged 7.06% to $295.50 per share.
Wal-Mart announced its 2023 fourth-quarter financial report before the opening bell on Tuesday. With the help of discounts, its revenue in the quarter grew by nearly 10%, and its adjusted earnings per share performed well. However, the outlook for the US economy this year is conservative. The forecast was lower than Wall Street expectations.
Home Depot reported fourth-quarter earnings ahead of the bell on Tuesday, showing better-than-expected profit but missing revenue targets. Home Depot has a moderate outlook for fiscal 2023, expecting sales and comparable sales to be roughly flat. Operating margin is expected to be approximately 14.5%, primarily impacted by a $1 billion investment to boost wages, and adjusted EPS is expected to decline by a mid-single-digit percentage.
Economic data
- U.S. February manufacturing PMI initial value reported 47.8, expected 47.1, previous value 46.9
- The initial value of the U.S. service industry PMI in February was 50.5, expected 47.2, and the previous value was 46.8
- U.S. composite PMI initial value reported at 50.2 in February, expected 47.5, previous value 46.8
Wall Street Analysis
“A slew of economic indicators, including the consumer price index and retail sales, suggest that inflation is still picking up modestly,” LPL Financial strategists Jeffrey Buchbinder and Quincy Krosby wrote. James Bullard and Cleveland Fed President Loretta Mester recently backed talk of a 2-yard rate hike in March.”
Art Hogan, chief market strategist at B. Riley Wealth, believes: “Economic data is better than expected, U.S. bond yields have risen, and stocks have finally caught up with the performance of the bond market in recent weeks.”
The Morgan Stanley strategist team headed by Michael Wilson pessimistically predicted: “The S&P index may fall to 3,000 points in the first half of 2023, a 26% drop from last Friday’s closing price.”
Jeff Kilburg, CEO of KKM Financial, pointed out: “Despite the continued market downturn, investors should remain optimistic. The rise in bond market yields is due to the lagged effect of the Fed’s interest rate hikes, not signs of a bear market.”
The numbers are all updated before the deadline, please refer to the actual quotation
