2023-06-16 13:44:40
Major US stock indexes opened higher on Friday (16th) as signs of easing price pressures in the US and signs of slowing economic growth added to hopes that the Federal Reserve (Fed) may soon end its monetary tightening policy.
before the deadline,Dow Jones Industrial Averagerose more than 70 points or nearly 0.2%,Nasdaq Composite Indexfell nearly 0.08%,S&P 500 Indexup nearly 0.1%,Philadelphia SemiconductorThe index fell 0.4%.
US stocks will usher in the “Four Witches” today, that is, stock index futures, stock index options, individual stock futures, and individual stock options expire at the same time. Rocky Fishman, founder of derivatives analytics firm Asym 500, estimates that regarding $4.2 trillion in stock and index-related contracts are expiring, up regarding 20% from a year ago.
Matthew Tym, head of equity derivatives trading at Cantor Fitzgerald LP, thinks traders may be unloading bullish positions that haven’t yet taken a profit.
Signs that U.S. interest rates are nearing a peak and China’s efforts to ramp up economic stimulus have lent support to the U.S. stock bull market. While central banks are still warning that the battle once morest inflation is not over, investors have taken comfort from economic reports showing that price pressures are cooling.
“There’s a lot of cash sitting on the sidelines and we shouldn’t underestimate the willingness of investors to come in,” said Georgios Leontaris, HSBC’s global private banking and wealth division, which rose in Switzerland and EMEA investments.
In addition, the rebound in technology stocks overturned some pessimistic analysts. Bank of America’s Michael Hartnett said his forecast was wrong in the first half of the year as the U.S. economy has avoided a recession and a credit crunch, calling the artificial intelligence (AI)-driven rally a “surprise”. Still, he compared things to 2000 or 2008, warning of a “big rebound before a big crash.”
U.S. Treasury yields rose, while the dollar held steady. After the European Central Bank (ECB) recently decided to raise interest rates once more by 1 yard (25 basis points),EURContinued to strengthen in yesterday’s rally, some analysts said,EURInflation in the region is more severe than that of the US, so the ECB will continue to raise interest rates, pushing them up to at least 4%.
Federal Reserve Governor Christopher Waller said it was unclear whether near-term banking stress would lead to a marked tightening of U.S. credit conditions, while saying officials should not let the concerns of a handful of lenders interfere with the fight once morest inflation. action.
As of 21:00 on Friday (16th) Taipei time:
Focus stocks:
Tesla (TSLA-US) rose 1.16 percent to $258.86 a share in early trade
According to several foreign media reports, Tesla began to provide three months of free fast charging service for Model 3 in the United States, with the aim of clearing the inventory of the model before the end of this season. Another media pointed out that Tesla’s move is a warm-up for the launch of the new Model 3.
Huida (NVDA-US) rose 1.17 percent to $431.50 a share in early trade
Morgan Stanley recently released the latest artificial intelligence (AI) observation report, and listed Huida as the best choice. Its target price was raised to $500 per share from $450 per share.
Intel (INTC-US) rose 0.84% to $36.12 a share in early trade
Intel said it plans to invest up to $4.6 billion to build a semiconductor assembly and testing plant in Poland that will help meet demand for assembly and testing capacity in the coming years and be operational by 2027. Intel said the Polish factory will create regarding 2,000 jobs and will help create the first leading end-to-end semiconductor manufacturing value chain in Europe.
Today’s key economic data:
- The U.S. Consumer Confidence Index in June is expected to be 60, the previous value was 59.2
- The initial value of the one-year inflation expectation of the University of Michigan in June is expected to be 4.1%, and the previous value is 4.2%
- The initial value of the 5-10 year inflation expectation in the United States in June is expected to be 3%, the previous value is 3.1%
Wall Street Analysis:
The recent sustained rebound in US stock markets will face new threats in the coming weeks. Big global funds are set to sell as much as $150 billion in equities by the end of June, driven by quarter-end rebalancing.
JPMorgan expects institutional investors, including sovereign wealth funds and pension funds, to move closer to bonds to meet asset allocation targets, in what would be the largest rebalancing into the asset class since the fourth quarter of 2021.
The Fed doesn’t know what it’s doing and is blindly heading into an “ugly recession” in the first quarter of 2024, said Nobel laureate Steve Hanke, a professor of applied economics at Johns Hopkins University.Additionally, Hanke remains bullish ongold,BecausegoldIt does very well in a recession.
1686934856
#U.S #Stocks #Morning #Market #interest #rate #hike #worries #subside #major #indexes #open #higher #Anue #tycoon #U.S #stocks
