U.S. stocks opened higher on Tuesday (10th), from a three-day losing streak, despite market sentiment still lingering over inflation-induced aggressive monetary tightening and economic growth concerns, investors bought previously hard-hit bank stocks and growth stocks recovery in.
Before the deadline,Dow Jones Industrial Averagerose more than 300 points or nearly 1.04%,Nasdaq Composite Indexup 1.67%,S&P 500 Indexup 1.26%,Philadelphia SemiconductorThe index rose 2.6%.
Traders are caught between high inflation, which is eroding asset values, and central bank tightening that might slow growth and even push some economies into recession. Recent U.S. data showed that the Federal Reserve will continue to hike interest rates aggressively, sparking a fresh round of safe-haven trades. In addition, China’s lockdown measures to control the epidemic also worsened market sentiment.
The market now turns its attention to the US consumer price index (CPI) for April released on Wednesday (11th). The data may provide some clues as to whether inflation is peaking and whether the odds of a 3-yard (75bps) rate hike by the Fed are elevated, rather than a 2-yard (50bps) hike that the market seems to have accepted. .
Raphael Bostic, president of the Atlanta Fed and 2024 voting member of the Federal Open Market Committee (FOMC), said he prefers to keep raising rates by 2 yards rather than a larger one, adding that a 3-yard rate hike is very likely. low, but does not rule out any possibility.
New York Fed President and FOMC permanent voting member John Williams said the Fed will cut inflation to target without damaging the economy amid heightened uncertainty over the path of price pressures caused by the war in Ukraine and the coronavirus pandemic The district’s efforts are challenging but feasible.
Williams sees the core personal consumption expenditures (PCE) price index approaching 4% at the end of the year, down from 5.2% today, before falling to around 2.5% in 2023, with the CPI expected to moderate slightly in April, which will This is a welcome sign that inflation has peaked.
In terms of energy, international oil prices fluctuated, the market was digesting the demand from the sanctions imposed by the European Union on Russian oil and the impact of China’s blockade measures, the strengthening of the US dollar and the increasing risk of economic recession. West Texas crude futures were up 0.2% at $103.33 a barrel by press time.Brent CrudeFutures rose 0.25% to $106.2 a barrel.
cryptocurrencyaspect,bitcoin‘s trading price rebounded slightly following falling below $30,000 earlier to trade at $31,841 at press time, down 3.7% in 24 hours.
As of 21:00 on Monday (9th) Taipei time:
Stocks in focus:
Pyloten (PTON-US) plummeted 18.61% to $11.50 a share in early trade
Fitness equipment maker Peloton announced its latest financial report before the opening of the US stock market. Due to increased spending and weak demand, it lost $757.1 million in the last quarter, equivalent to a loss of $2.27 per share, far higher than market expectations of $132.1 million and $0.83. Revenue fell 23.6% to $964.3 million, also missing market expectations of $972.9 million. In addition, the company faces funding problems, having borrowed $750 million over five years from JPMorgan Chase and Goldman Sachs.
Novavax (NVAX-US) fell 15.47 percent to $45.02 a share in early trade.
Biopharmaceutical company Novavax reported poor first-quarter revenue, with revenue of $704 million and earnings per share of $2.56, both lagging market expectations of $806.8 million and $2.65. Meanwhile, Novavax only shipped 31 million doses of the new crown vaccine last quarter, well below the company’s estimated 2 billion doses in 2022. However, Novavax remains confident in this year’s revenue, saying that sales of this dose of the vaccine will accelerate.
AMC(AMC-US) surged 4.91% to $13.13 a share in early trade
Although AMC recently announced a loss of $337.4 million in the last quarter, which was lower than market expectations, revenue of $785.7 million was better than market expectations of $743 million, and thanks to the help of strong movies such as Spider and Batman, each user Income is above pre-pandemic levels.
Today’s key economic data:
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Wall Street Analysis:
For now, investors need to brace for continued volatility, said Solita Marcelli, U.S. chief investment officer at UBS Global Wealth Management. “Market sentiment is bearish,” but did not capitulate.
Jane Foley, head of foreign exchange strategy at Rabobank in London, said market sentiment remained fairly fragile given the threat of a war with Russia, tightening Fed policy and China’s containment measures once morest the virus. In the medium term, the dollar is expected to remain well supported by safe-haven funds.
Monica Defend, head of the Amundi Institute, said the central bank’s every move remained the focus of investors and was the main driver of the stock market. U.S. real yields will continue to rise, although the market may have already priced in the news.
