Monday (10th) is the US federal holiday “Columbus Day” (Columbus Day), the bond market is closed, and US stocks are trading as usual. The main US stocks opened higher on Monday and then fluctuated lower. Selling pressure swept technology stocks and semiconductor stocks. JPMorgan Chase U.S. stocks fell to session lows on downbeat comments from Chief Executive Jamie Dimon, but pulled back some in late trading following Fed Vice Chairman Lael Brainard’s hawk-to-dove remarks lost ground.
The four major indexes closed out of ink,Dow JonesThe S&P closed down 0.75%, down nearly 100 points.that fingerIt fell more than 1 percent to 10,542.1, its lowest close since July 28, 2020. Qualcomm and TSMC ADR led the decline,half feeIt tumbled nearly 3.5 percent to close at its lowest level since November 2020.
In terms of politics and economy, JPMorgan Chase CEO Jamie Dimon warned in an interview on Monday that the United States may fall into recession in 6 to 9 months, and the economic downturn may trigger credit market panic and reduce US stock valuations by another 20%. .
Lael Brainard, the Fed’s “second-in-command” and vice chairman of monetary policy, said in a speech on Monday that the Fed will carefully assess economic data to confirm the effect of previous interest rate hikes to curb inflation , before deciding on the pace of future rate hikes, which is slightly more dovish compared to the recent calls by other officials for aggressive rate hikes.
Chicago Fed President Charles Evans on Monday called out that even if the Fed continues to raise interest rates, it is still possible to reduce inflation without significantly increasing unemployment, in an attempt to counter the Fed’s push to move the world and the United States toward Arguments for a potential sharp recession.
The U.S. Department of Commerce recently banned U.S. companies from providing high-end chips for artificial intelligence (AI) or supercomputers to China, and also included 31 Chinese companies, including Changjiang Storage, on the “unverified list”. The Chinese Ministry of Commerce responded that the U.S. upgraded semiconductors, etc. Domain export control measures are typical of technology bullying. The news clouded tech and chip stocks.
The market is closely watching the US consumer price index (CPI) released on Thursday this week. The market predicts that the CPI may tend to be moderate, while the core CPI keeps rising, pushing the Fed to raise interest rates by 3 yards for the fourth time in November this year.
Meanwhile, analysts at several investment banks, including Goldman Sachs and Morgan Stanley, predict that companies will usher in a difficult earnings season as overall economic risks such as slowing demand and soaring costs expand. JPMorgan Chase, Wells Fargo, Citigroup and Morgan Stanley will report their latest earnings on Friday. Fitch expects a modest negative impact on banks from higher interest rates, inflation and a mild U.S. recession, offsetting the benefits of higher interest rates.
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 621 million, and the number of deaths has exceeded 6.55 million. More than 12.7 billion vaccine doses have been administered in 184 countries worldwide.
The performance of the four major U.S. stock indexes on Monday (10th):
Focus stocks
The five heavenly kings of science and technology fluctuate with each other. apple (AAPL-US) rose 0.24%; Meta (META-US) rose 0.25%; Alphabet (GOOGL-US) fell 0.83%; Amazon (AMZN-US) fell 0.78%; Microsoft (MSFT-US) fell 2.13 percent.
Dow JonesConstituent stocks were mixed. Salesforce (CRM-US) fell 3.09%; Disney (DIS-US) fell 2.06 percent; Chevron (CVX-US) fell 1.81 percent; Walgreens United Boots (WBA-US) rose 4.33%; Merck (MRK-US) rose 3.29%.
half feeConstituent selling pressure surged. Qualcomm (QCOM-US) fell 5.22%; AMD (AMD-US) fell 1.08%; NVIDIA (NVDA-US) fell 3.36 percent; Applied Materials (AMAT-US) fell 4.13%; Texas Instruments (TXN-US) fell 1.56%; Micron (MU-US) fell 2.89%.
All ADRs of Taiwan stocks closed in black. TSMC ADR (TSM-US) fell 3.31%; ASE ADR (ASX-US) fell 2.50%; UMC ADR (UMC-US) fell 2.76%; Chunghwa Telecom ADR (CHT US) fell 0.15%.
Corporate News
apple (AAPL-US) received a 0.24% dividend to $140.42 per share. According to preliminary data from IDC, global personal computer (PC) sales in the third quarter were weak, with a total shipment of about 74.252 million units, down 15% year-on-year. Among them, HP fell 28% year-on-year, Dell fell 21%, and Lenovo fell 16%. Apple bucked the trend and increased by 40% year-on-year.
The Biden administration officially issued a ban on Friday prohibiting graphics processing unit (GPU) duo AMD and Nvidia from importing high-end chips into China.AMD-US) fell 1.08 percent to $57.81 a share. NVIDIA (NVDA-US) fell 3.36 percent to $116.70 a share.
Ford (F-US) fell 6.89% to $11.36 per share. Universal (GM-US) fell 3.96 percent to $32.29 a share. Analysts at UBS said Ford, GM and other automakers will face a 50% profit slump next year and the auto industry is heading for an oversupply.
American electric vehicle company Rivian (RIVN-US) plunged 7.28 percent to $31.48 a share after the company recalled nearly all of its vehicles, citing safety hazards such as loose parts that could lead to loss of control and increase the risk of collisions.
Wall Street Analysis
Mohamed El-Erian, chief economic adviser at Allianz Group, said: “The risk of the U.S. economy falling into a devastating recession is extremely high, and the Fed is to blame, not only to overcome inflation, but also to restore its credibility. , but I am concerned that the U.S. is at high risk of a destructive recession that could have been completely avoided.”
Independent Advisor Alliance analyst Chris Zaccarelli judged: “U.S. stocks may continue to fall, because both the economy and corporate earnings will decline significantly, and the Federal Reserve will raise interest rates, or even maintain high interest rates for longer. Given the current environment , I believe preparing for a recession is a prudent move.”
The figures are updated before the deadline, please refer to the actual quotation.