Supported by growth and technology stocks, the major U.S. stock indexes opened higher on Thursday (25th), and the market’s focus now turns to the Federal Reserve’s annual symposium in Jackson Hole to find its future monetary policy path clues.
Before the deadline,Dow Jones Industrial Averagedown 0.14%,Nasdaq Composite Indexup 0.5%,S&P 500 Indexrose nearly 0.3%,Philadelphia SemiconductorThe index rose more than 1.4 percent.
Chinese government invests moreRMB 1 trillion yuan ($146 billion), China’s technology stocks benefited, Alibaba (BABA-US), Baidu (BIDU-US), JD.com (JD-US). However, traders expected the market to continue to fluctuate, and investors waited for Fed Chairman Powell to speak at the annual meeting in Jackson Hole for clues to raise interest rates.
Kansas Federal Reserve Bank President Esther George, who voted on the Federal Open Market Committee (FOMC) this year, joined the hawks on the eve of the central bank’s annual meeting, saying the Fed’s benchmark interest rate may have to rise above 4% to beat inflation . The remarks undercut stocks and bonds that have rebounded from bottoming in mid-June amid concerns over whether stocks and bonds will fall back to their lows this year.
At the same time, Atlanta Federal Reserve Bank President Raphael Bostic said in a recent interview that the U.S. central bank still has some time to raise interest rates this year, warning that it is still too early to say that inflation has peaked, but it may be There have been some signs of inflation peaking, and he said he was still tossing between a two-yard (50 basis point) rate hike and a three-yard (75 basis point) rate hike.
In terms of economic data, the revised data released by the United States on Thursday showed that the revised annual rate of real gross domestic product (GDP) in the second quarter of the United States was reported at -0.6%, an increase of 0.3 percentage points from the second estimate and better than market expectations. – 0.8% of the previous value of – 0.9%. The newly revised data reflects that the US economy has fallen into a technical recession, which may not be as severe as the market imagined.
The U.S. Department of Labor released the latest unemployment benefits data on the same day. The number of people receiving unemployment benefits last week was 243,000, a decrease of 2,000 from the previous revised 245,000, which was lower than the market expectation of 253,000. It fell for two consecutive weeks, indicating that employment The market is strong.
In Europe, economic data from Germany, Europe’s largest economy, was mixed, with second-quarter GDP showing a more resilient performance than initially thought, although deteriorating business confidence suggested the outlook remained uncertain. European shares pared gains at the close, with energy and healthcare stocks gaining the most, while retailers underperformed and concerns grew over a crisis in Russian gas supplies.
As of 21:00 on Thursday (25th) Taipei time:
Stocks in focus:
Pyloten (PTON-US) fell 14.65% to $11.51 a share in early trade
Peloton, a startup fitness equipment company, reported bleak fourth-quarter fiscal 2022 earnings before the market, with a net loss widening to $1.24 billion, or $3.68 per share, from $313.2 million, or $1.05 per share, a year earlier , revenue fell 28% to $678.7 million from $936.9 million a year ago, missing market expectations of $718.2 million. Plotton did not provide fiscal 2023 guidance.
Huida (NVDA-US) fell 1.03% to $170.44 a share in early trade
Due to the weak global economy affecting the gaming sector, Huida’s second quarter financial report for fiscal 2023 was bleak, with revenue rising only 3% to $6.704 billion, far less than analysts’ estimate of $8.1 billion, and earnings per diluted share. Profit fell 51% year-on-year to $0.51, once more below analysts’ estimates of $1.26.
In addition, Huida’s third-quarter financial forecast also missed expectations, with estimated revenue of $5.9 billion, lower than analysts’ expectations of $6.95 billion. At the same time, Huida also warned that the performance of the game business may continue to be sluggish and is pessimistic regarding the prospects.
Snowflake(SNOW-US) surged 18.53% to $189.04 per share in early trade
Data storage and analysis software company Snowflake’s second-quarter revenue surged 83% to $497.2 million, far exceeding market estimates of $467.5 million, and raised its full-year revenue to $1.905 from a range of $1.885 billion to $1.9 billion billion to $1.915 billion.
Today’s key economic data:
- The number of Americans receiving unemployment benefits last week reported 243,000, expected 253,000, the previous value of 245,000
- The number of people receiving unemployment benefits in the United States reported 1.415 million last week, 1.442 million is expected, and the previous value was 1.434 million
- U.S. second-quarter real GDP quarterly growth rate revised to -0.6%, expected -0.8%, previous value -0.9%
- The U.S. core PCE price index in the second quarter was revised to an annualized rate of 4.4%, expected to be 4.4%, and the previous value of 5.2%
- US August Kansas Fed manufacturing index reported -9, the previous value of 7
- The U.S. Kansas Federal Reserve Bank Manufacturing Composite Index reported 3 in August, from 13 previously
Wall Street Analysis:
Silvia Dall’Angelo, senior economist at Federated Hermes Ltd, said Fed Chair Powell at the Jackson Hole annual meeting of global central banks is likely to hit back at the market’s prematurely expected dovish stance and reiterated that the Fed’s focus will be on fighting surging inflation on inflation.
JPMorgan’s chief global market strategist, Marko Kolanovic, is skeptical that the Fed can stick to a hawkish line for long, arguing that hyperinflation fueled by the commodities supercycle and a resurgence of the coronavirus will naturally subside over time. “We maintain that inflation will subside on its own as the distortion creeps in and might prompt a Fed policy shift,” he said.
In addition, Kolanovic does not expect Powell to disclose the Fed’s next move at the annual meeting, and the follow-up action will depend on the state of economic data. At the same time, Powell may also refute the Fed’s dovish policy.
John Hardy, head of FX strategy at Saxo Bank, said stocks are likely to be on hold until Powell speaks.As forEURhe added, will only gain momentum unless it sees an easing of soaring gas and electricity prices, although there are dire pressures on that front.
