The Federal Open Market Committee (FOMC) started its two-day interest rate meeting on Tuesday (13th). The U.S. consumer price index (CPI) slowed down significantly in November, which is conducive to supporting the Federal Reserve’s dovish stance on raising interest rates. The yield rate fell sharply, and the main US stock index opened like a rainbow on Tuesday.Dow JonesIt once soared above 700 points, and energy stocks and technology stocks soared rapidly.
However, U.S. stocks were not strong enough to chase prices in midday trading.Dow JonesIt closed up more than 100 points, and the S&P closed up more than 0.7%, failing to stand on the 200-day moving average.That fingerup more than 1%,fee halfIt rose more than 2%.
The last “Super Central Bank Week” of this year is coming. The Federal Reserve will announce the latest interest rate decision on Wednesday Eastern Time. Immediately afterwards,EURRegional central banks such as the United Kingdom, Switzerland and Taiwan will announce their decisions one after another.
Prior to this, the United States announced on Tuesday that the CPI in November increased by 7.1%, which was lower than market expectations of 7.3%, and fell sharply from the previous value. The core CPI increased by 6%, lower than market expectations of 6.1% and the previous value of 6.3%.
With the key inflation data falling, the market expects that the Fed will raise interest rates by 2 yards to 4.25%-4.50% on Wednesday, with a probability of about 79%, and the terminal rate by June 2023 will be 4.75%-5.0%.
The Wall Street Journal (WSJ) reporter Nick Timiraos, who is recognized by the market as the Fed’s megaphone, revealed on Tuesday that this CPI data is unlikely to change the Fed’s expectation of raising interest rates by 2 yards on Wednesday, but it has been passed for two consecutive months. The slowdown in expansion could complicate discussions about how much to raise interest rates early next year and how long they will last at the end of the year.
The novel coronavirus pneumonia (COVID-19) global epidemic continues to spread. Before the deadline, the Johns Hopkins University (Johns Hopkins University) data pointed out that the number of confirmed cases worldwide has exceeded 650 million, and the number of deaths has exceeded 6.65 million. More than 12.7 billion doses of vaccines have been administered in 184 countries around the world. The Chinese government is considering allowing Hong Kong residents to travel to China without quarantine before the Lunar New Year holiday.
The performance of the four major US stock indexes on Tuesday (13th):
Focus stocks
The five kings of science and technology rise together. apple (AAPL-US) rose 0.68%; Alphabet (GOOGL-US) up 2.49%; Microsoft (MSFT-US) up 1.75%; Meta (META-US) up 4.74%; Amazon (AMZN-US) rose 2.14%.
Dow JonesComponent stocks were mixed. Chevron (CVX-US) rose 2.23%; Salesforce (CRM-US) rose 1.89%; Merck (MRK-US) rose 1.78%; Amgen (AMGN-US) down 1.63%; UnitedHealth (UNH-US) fell 1.4%.
fee halfConstituent stocks generally rose. NVIDIA (NVDA-US) rose 3.06%; Applied Materials (AMAT-US) rose 2.29%; Texas Instruments (TXN-US) up 0.011%; Micron (MU-US) down 0.20%; Intel (INTC-US) rose 0.14%; Qualcomm (QCOM-US) rose 1.88%; AMD (AMD-US) rose 1.39%.
Taiwan stock ADR received more red. TSMC ADR (TSM-US) up 0.10%; ASE ADR (ASX-US) fell 2.07%; UMC ADR (UMC-US) rose 1.11%; Chunghwa Telecom ADR (CHT US) up 0.22%.
Corporate News
Tesla (TSLA-US) continued to fall 4.09% to $160.95 per share on Tuesday, hitting a 52-week low, and its market value dropped to $504.332 billion. Matt Maley, chief market strategist at Miller Tabak + Co., said: “The biggest concern is slowing demand in China, and as long as Musk spends a lot of time on Twitter, Tesla stock will likely continue to decline.”
Following Texas, Maryland and South Dakota in the United States, Alabama and Utah also banned the use of popular Chinese video-sharing software TikTok on government devices or computers on Tuesday, citing national security reasons. Social media giant Meta (META-US) surged 4.74%, Snap (SNAP-US) edged down 0.63%.
Software giant Oracle (ORCL-US) slipped 0.89% to $80.56 per share. Oracle’s latest financial report last quarter’s revenue increased by 18% to US$12.28 billion, which was better than market expectations, mainly due to the strong demand for enterprise cloud infrastructure and the acquisition of electronic medical records company Cerner to play a combined effect.
Moderna Inc (MRNA-US) soared 19.63% to $197.54 per share. Merck (MRK-US) rose 1.76% to $110.91 per share. An experimental personalized melanoma vaccine developed by Moderna, when combined with Merck’s key immune drug Keytruda in a mid-stage trial, reduced the risk of skin cancer recurrence or death by 44% compared with Keytruda alone.
Raytheon Technology announced on Tuesday that it will use $6 billion in funds to execute treasury stocks. Raytheon Technology (RTX-US) closed 0.32% higher at $99.89 per share.
Pinterest (PINS-US) soared 11.90% to $26.42 per share. Piper Sandler judged that Pinterest may benefit from improved products and expanded market share, and upgraded Pinterest’s stock rating to “overweight”.
Economic data
- U.S. CPI increased by 7.1% in November, expected to be 7.3%, and the previous value was 7.7%
- U.S. CPI increased by 0.1% in November, expected to be 0.3%, and the previous value was 0.4%
- The core CPI in the United States increased by 6.0% in November, expected to be 6.1%, and the previous value was 6.3%
- U.S. core CPI increased by 0.2% in November, expected to be 0.3%, and the previous value was 0.3%
Wall Street Analysis
Art Hogan, chief market strategist at B. Riley Wealth, said: “The Fed meeting coincides with a slight improvement in inflation data, but we are still not sure whether the Fed will raise interest rates by 2 yards, whether it will raise terminal interest rates, and soon The answer will be revealed.”
Richard Carter, director of fixed-rate research at Quilter Cheviot, said: “While the war on inflation is shifting, the Fed is still a long way from declaring victory, predicting that the Fed will remain hawkish for some time. Even if it does lead to a recession.”
Ellen Zentner, Chief U.S. Economist at Morgan Stanley, predicted: “The Federal Reserve will raise interest rates next year even less. Peaked at 4.625%.”
The numbers are all updated before the deadline, please refer to the actual quotation