U.S. stock futures pared losses following Fed Chairman Jerome Powell gave no clues regarding the outlook for interest rates in an earlier speech, a day following two Fed officials said it might be too late to declare a victory over inflation It is too early, and the market is still worried regarding raising interest rates, and the major US stock indexes fluctuated on Tuesday (10th).
before the deadline,Dow Jones Industrial Averageup 0.05%,Nasdaq Composite Indexup 0.02%,S&P 500 Indexdown 0.03%,Philadelphia SemiconductorThe index fell nearly 0.4 percent.
Powell spoke briefly on central bank independence at a forum in Stockholm, Sweden, on Tuesday. He believes that the Fed needs to get rid of political influence when dealing with persistently high inflation, and stabilizing prices requires making difficult decisions that are politically unpopular because the Fed slows the economy by raising interest rates to guide inflation down.
Traders had hoped for a quick end to the Fed’s aggressive interest rate hikes as global inflation slowed, but their hopes were dashed on Monday. San Francisco Federal Reserve Bank President Mary Daly predicts that the Fed will raise interest rates above 5%; Atlanta Federal Reserve Bank President Raphael Bostic also said that interest rates should be raised to 5% by the beginning of the second quarter of this year above, and then remain unchanged for a long time.
Meanwhile, JPMorgan Chase & Co. Chief Executive Jamie Dimon said in an interview on Tuesday that the Federal Reserve (Fed) may need to raise interest rates above the 5% level it currently expects, but he favors a pause in rate hikes to see the impact of last year’s tightening. Full impact.
In Europe, Goldman Sachs economists say they no longer forecastEURThe region is headed for a recession as Europe’s economy proved more resilient last year, while gas prices fell sharply and China dropped its strict coronavirus lockdown earlier than expected.
Wall Street giant JPMorgan Chase (JPM-US),Bank of America (BAC-US), Citigroup (C-US) and Wells Fargo (WFC-US) will announce last year’s fourth-quarter results this week, and institutions expect their profits to decline.
According to Refinitiv data, including Morgan Stanley (MS-US) and Goldman Sachs (GS-US), the six largest banks are expected to prepare a total of US$5.7 billion in reserves to deal with non-performing loans, more than double the US$2.37 billion in the same period last year, while net profits will decline by an average of 17% year-on-year. In addition, according to Dealogic data, global investment banking revenue fell to US$15.3 billion in the fourth quarter of last year, a drop of more than 50% from the same period of the previous year.
As of 22:00 on Tuesday (10th) Taipei time:
Focus stocks:
Tesla (TSLA-US) fell 0.45% to $119.17 per share in early trade
After Tesla China announced the price cut, it received orders for 30,000 electric vehicles within three days. Tesla lowered the price once more, which led to some new car manufacturers in China facing a big test, especially those with similar prices and low sales. Depots, and even depots urgently launched sales speech training. In addition, the order page of Tesla China’s official website also shows that the expected delivery cycle of the Model Y rear-wheel drive, long-range version has been extended to 2-5 weeks, originally 1-4 weeks, showing signs of sales recovery.
microsoft (MSFT-US) rose 1.23 percent to $229.91 a share in early trade
According to Semafor, Microsoft is in talks to invest up to $10 billion in artificial intelligence company OpenAI, creator of the AI chatbot ChatGPT. The financing also includes other venture capital firms, the people said. Including the new investment, OpenAI will be valued at $29 billion.
It is unclear whether the deal has been negotiated, but documents sent to potential investors in recent weeks show that the deal aims to close by the end of 2022.
Boeing (BA-US) fell 1.62% in early trade to $205.21 per share
Shares of U.S. aerospace giant Boeing fell more than 2 percent in premarket trading following Morgan Stanley downgraded the stock to “equal weight” from “overweight,” citing the stock’s trading at current levels. Lack of upside potential. “We see a risk-reward balance as most near- and medium-term bullish factors have materialized,” Morgan Stanley said in a note.
Today’s key economic data:
- The monthly rate of wholesale inventories in the United States in November last year was expected to be 1%, and the previous value was 1%
- The monthly rate of wholesale sales in the United States in November last year is expected to be 0.4%, the previous value is 0.5%
Wall Street Analysis:
Hopes of a soft landing for the U.S. economy are growing and might be dashed if the Fed remains hawkish on interest rates, said Russ Mould, investment director at AJ Bell.
Susannah Streeter, senior investment and market analyst at Hargreaves Lansdown, said that investors are closely watching any economic data that shows that inflation is cooling, hoping that the hawkish stance of Fed officials will soften, but the recent speeches of various officials are still showing eagle claws. The work of expansion is far from over.