Fed eagle sounded again, Huida could not turn the tide, the Nasdaq fell nearly 1.9%, and Fei Ban collapsed more than 3% | Anue tycoon

2023-08-24 20:33:29

On the eve of Federal Reserve (Fed) Chairman Jerome Powell’s speech at the central bank’s annual meeting, Fed officials “falconed”, market sentiment was clouded, U.S. bond yields rose, and U.S. stock indexes opened higher and lower on Thursday (24th). Even if the “AI behemoth” Huida’s financial forecast is amazing, it will be difficult to turn the tide, and AI concept stocks are generally down.

Dow JonesIt closed down more than 370 points, and the S & P closed 1.35% black,fee halfThe collapse exceeded 3%.That fingerIt fell nearly 1.9 percent, ending its third straight session of gains.

In political and economic news, Federal Reserve Chairman Jerome Powell will deliver a speech at the central bank’s annual meeting in Jackson Hole, Wyoming on Friday. Investors will analyze it to find clues regarding the outlook for interest rate policy.

Nick Timiraos, a reporter known as the “Fed microphone”, wrote on the 21st that he speculated that the increase in productivity and the increase in the US deficit may allow the Fed to raise the “neutral interest rate”, thereby limiting the Fed’s interest rate cuts.

While the market is sensitive, Fed officials issued a hawkish signal on Thursday. Boston Fed President Susan Collins said that the Fed may be in a position to keep the policy rate stable. Growth has slowed markedly, further rate hikes are likely, and it is too early to send a clear signal on the timing of rate cuts.

James Bullard, a former Federal Reserve hawk who has now moved to academia, said a pick-up in the U.S. economy might put upward pressure on inflation, hinder the deceleration we are seeing and delay the central bank’s policy changes plan.

Philadelphia Federal Reserve Bank President Patrick Harker reiterated on Thursday that the Fed has probably done enough tightening and should keep interest rates at restrictive levels as it assesses the policy’s impact on the economy.

The performance of the four major US stock indexes on Thursday (24th): US stocksDow Jones IndexIt fell 373.56 points, or 1.08 percent, to close at 34,099.42.
NasdaqThe index fell 257.06 points, or 1.87 percent, to close at 13,463.97.
S&P 500 IndexIt fell 59.7 points, or 1.35%, to close at 4,376.31.
Philadelphia SemiconductorThe index fell 120.71 points, or 3.35 percent, to close at 3,481.30. The 11 major S&P sectors were bloodied, led by losses in information technology, communication services and consumer discretionary. (Picture: finviz) Focus stocks

All the five kings of science and technology have fallen. Amazon (AMZN-US) down 2.72%; Meta (META-US) down 2.55%; Apple (AAPL-US) down 2.62%; Alphabet (GOOGL-US) down 1.96%; Microsoft (MSFT-US) down 2.15%.

Dow JonesMore than half of constituent stocks fell. Boeing (BA-US) down 4.93%; Walgreens Boots (WBA-US) fell 4.6%; Disney (DIS-US) down 3.91%; Salesforce (CRM-US) down 1.73%; Verizon Communications (VZ-US) down 0.57%.

fee halfConstituent stocks generally received black. Huida (NVDA-US) edged up 0.10%; Micron (MU-US) down 2.30%; Qualcomm (QCOM-US) down 2.39%; Applied Materials (AMAT-US) down 3.70%; AMD (AMD-US) plummeted 6.97%; Texas Instruments (TXN-US) down 2.50%.

ADRs of Taiwan stocks ended higher and lower. TSMC ADR (TSM-US) down 1.79%; ASE ADR (ASX-US) fell 1.83%; UMC ADR (UMC-US) fell 1.17%; Chunghwa Telecom ADR (CHT US) up 0.55%.

Corporate News

Huida (NVDA-US) jumped more than 7% at the opening on Thursday, soaring to a record high of $502.66 at one point, but then the buying momentum was insufficient, and the gains were sharply curtailed, closing only slightly up regarding 0.1% to $471.63 per share.

Thanks to the frenzy of artificial intelligence (AI), which has driven a surge in demand for Huida’s data center chips, Huida announced its stunning second-quarter earnings following the close on Wednesday, and its third-quarter revenue is expected to reach $16 billion, an annual growth rate of $16 billion. 170%. The chief financial officer of Huida said that the company has seen huge demand and expects to have very strong orders until 2024.

Huida’s buying momentum was insufficient, closing up only 0.1% (Photo: shutterstock)

JPMorgan Chase reiterated Huida’s “overweight” rating on Wednesday, raised its target price from US$500 to US$600, and forecast Huida’s adjusted earnings per share (EPS) from 2023 to 2025 to be 3.34, 10.49 and 14.95 US dollars respectively .

Competitor Huida was crushed by the Air Force, Intel (INTC-US) fell 4.09% to $32.59 per share. AMD (AMD-US) plunged 6.97% to $101.80 per share. Qualcomm (QCOM-US) fell 2.39 percent to $108.51 a share.

AI concept stock C3.ai (AI-US) collapsed 11.56% to $28.83 per share. Palantir Technologies (PLTR-US) tumbled 7.58% to $14.14 per share.

apple (AAPL-US) slipped 2.62% to $176.38 per share. Apple is regarding to release the next-generation iPhone 15 series in mid-September. It is rumored that the iPhone 15 will have USB-C. The USB-C data cable will be limited to the speed of USB 2.0, and can only transmit data at the same maximum rate of 480 Mbps as lightening.

Tesla (TSLA-US) fell 2.88% to $230.04 per share. The Tesla electric pickup Cybertruck has more than 1.96 million reservations and will begin full production by the end of this year. Musk recently issued an internal letter warning employees to uphold perfectionism and precision manufacturing when manufacturing Cybertruck, because the particularity of its design will make small defects significantly magnified.

Disney (DIS-US) fell 3.91% to $82.47 per share, the lowest closing level since October 17, 2014. Disney is facing a slew of challenges, with theme park revenue slowing, an unfavorable ad market and declining subscriber numbers for Disney+, all while trying to reduce its debt.

In terms of data, the number of people who claimed unemployment benefits in the United States reported 230,000 last week, 240,000 expected, and 240,000 in the previous week. -5.2%, -4.0% expected, 4.4% previously Wall Street Analysis

Citi analyst Scott Chronert commented that it is time to adjust the AI ​​hype! Chronert doesn’t think the AI ​​trend and its impact on S&P’s long-term earnings are at risk, but he believes that Huida’s bright earnings report is more like a “buy the rumor, sell the news” (Buy the rumor, sell the news) event.

Phillip Colmar, global strategist at MRB Partners, believes: “The focus of this market is very narrow, and only a few stocks drive the entire market. If there is a better growth background and higher bond yields, the market will naturally expand. In recent weeks , we’ve seen some of it.”

Jeremy Grantham, the founder of GMO, an asset management organization known as a value investment guru, pointed out that the United States is still on the road to economic recession. He is not confident that the US economy will achieve a soft landing. Ultimately, it will bring pain to the market, and the Fed will do little to change the status quo.

“Look at what Powell is going to say in light of some of the underlying economic data weakness? How is he going to signal? Are we at peak policy rates? Is the central bank on hold?” said Robert Alster, chief investment officer at Close Brothers Asset Management. ? This is a crucial question.”

Analysts at Bank of America believe: “The market may not be ready for Powell’s possible hawkish speech. The fading recession expectations have brought renewed focus on inflation and possible Fed tightening. Risk assets have begun to show signs of weakness this year. More signs of weakness so far. We think equities are riskier than the market is pricing in.”

Interactive Brokers strategist Steve Sosnick said: “Stocks have risen sharply so far this year, bond yields have pushed higher, and investors might be caught off guard if a hawkish Powell triggers a sell-off in risk assets. some outright complacency, but they are hardly risk-averse.”

The numbers are all updated before the deadline, please refer to the actual quotation

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