Federal Reserve officials once again “released eagles”, tensions across the Taiwan Strait continued to rise, HP and Seagate’s downward financial revisions were predicted to be the trigger for selling pressure on technology stocks, the main US stock indexes fluctuated in a narrow range after opening higher on Wednesday (31st), and the selling pressure intensified in late trading , the four major indexes closed in black, continuing the decline for the fourth trading day.
The main U.S. stock index also had its worst August performance in seven years, with the S&P falling 4.2% in August.Dow Jonesfell 4.1% month-on-month,that fingerIt fell 4.6%.
In terms of data, a new version of small nonfarm payrolls that takes salary data into account debuted on Wednesday. The U.S. private sector employment increased by 132,000 in August, far below the market’s forecast of an increase of 300,000, compared with July’s 268,000 has slowed down. Analysts believe the U.S. may be at an inflection point, from overburdened employment growth to normalized levels.
In terms of politics and economy, the Federal Reserve has raised interest rates four times this year, with a total increase of 2.25%. Markets are expecting the Fed to raise interest rates for the third time in a row by 0.75% at its September meeting, with cuts expected to begin in the fall of 2023.
However, this year’s Federal Open Market Committee (FOMC) voting member Loretta Mester, president of the Federal Reserve Bank of Cleveland, said on Wednesday that the Fed needs to raise interest rates above 4% by early next year and keep it there. For a period of high water, the Fed is not expected to cut rates until at least the end of 2023.
In terms of geopolitics, after the US House of Representatives Speaker Nancy Pelosi visited Taiwan, the situation in the Taiwan Strait was tense, and US-China relations took a sharp turn for the worse. Than (John Kirby) said Wednesday that the two sides continue to actively arrange related work on the date and place.
The Chinese authorities are sending drones to infest Kinmen, Lianjiang and other outer islands on many occasions. The Taiwan military has sent signal bombs to warn them and carried out defensive shooting to drive them away.
The U.S. Senate and House of Representatives will begin deliberating on the “Taiwan Policy Act of 2022” in September, covering comprehensively enhancing Taiwan-U.S. relations, strengthening Taiwan-U.S. security and economic and trade relations, and supporting Taiwan’s international participation and countermeasures On major issues such as China’s coercion, the Taiwanese government is in close contact with the U.S. Senate Foreign Relations Committee and continues to pay attention to the development of the bill.
The global epidemic of new coronary pneumonia (COVID-19) continues to spread. Before the deadline, data from Johns Hopkins University in the United States pointed out that the number of confirmed cases worldwide has exceeded 601 million, and the number of deaths has exceeded 6.48 million. More than 12.5 billion vaccine doses have been administered in 184 countries worldwide. The U.S. Food and Drug Administration (FDA) has announced the approval of a new coronavirus vaccine booster against the omicron BA.5 subvariant virus, in preparation for a new wave of infection peaks this fall and winter.
The performance of the four major U.S. stock indexes on Wednesday (31st):
Focus stocks
Among the five kings of science and technology, only Meta is the best. apple (AAPL-US) fell 1.06%; Meta (META-US) rose 3.67%; Alphabet (GOOGL-US) fell 0.66%; Amazon (AMZN-US) fell 1.52%; Microsoft (MSFT-US) fell 0.57%.
Dow JonesMore than half of the constituents closed in the dark. Salesforce (CRM-US) fell 2.22%; Merck (MRK-US) fell 1.75%; American Express (AXP-US) fell 1.72%; Amgen (AMGN-US) rose 0.49%; Goldman Sachs (GS-US) rose 0.47%.
half feeConstituent stocks generally ended lower. NVIDIA (NVDA-US) fell 2.42%; AMD (AMD-US) fell 2.38%; Applied Materials (AMAT-US) fell 0.48%; Micron (MU-US) rose 0.41%; Qualcomm (QCOM-US) fell 1.04%; Intel (INTC-US) fell 1.05%; Texas Instruments (TXN-US) fell 0.92%.
Taiwan ADR was the best performer with UMC. TSMC ADR (TSM-US) rose 0.68%; ASE ADR (ASX-US) rose 0.35%; UMC ADR (UMC-US) rose 1.07%; Chunghwa Telecom ADR (CHT US) fell 0.97%.
Corporate News
apple (AAPL-US) fell 1.06 percent to $157.22 a share. As Apple’s autumn conference is approaching, Bank of America analysts suggested that investors should focus on three key points: product, pricing and timing. In addition, analysts reminded that Apple’s stock price usually declines after the conference, but the price also usually rises. Recover 30 to 60 days after launch.
HP (HPQ-US) plunged 7.74% to $28.71 per share. Hewlett-Packard (HP) reported a fall in third-quarter revenue after the bell on Tuesday, dragged down by slumping demand for consumer personal computers (PC) The slowdown is spreading to the commercial sector.
Hard drive manufacturer Seagate Technology (Seagate Technology) (STX-US) fell 3.54 percent to $66.96 a share. Seagate Technology, citing a deteriorating macroeconomic situation, lowered its forecast for the quarter ended Sept. 30. The company expects adjusted earnings per share to be well below its earlier forecast of $1.20 to $1.60 per share on revenue. It was also significantly revised down to $2.1 billion from the previous estimate of $2.5 billion.
Economic data
- U.S. ADP employment reported 132,000 in August, an estimate of 288,000, and the previous value of 268,000
- The U.S. Chicago PMI in August reported 52.2, expected 52.0, the previous value was 52.1
Wall Street Analysis
Tim Ghriskey, senior portfolio strategist at Ingalls & Snyder, said: “The Fed’s primary concern is raising interest rates to reduce inflation, and in terms of how aggressive it is, it’s all about the data. There’s a lot of volatility in the market right now. Investors are worried that these rallies are just bear market rallies, and that stocks could hit new lows.”
“September is typically the worst month of the year, the only month of the year where there are more downsides than upsides, so this year may prove to be the September spell,” said Sam Stovall, chief investment strategist at CFRA.
The figures are updated before the deadline, please refer to the actual quotation.