The market expects that soaring inflation and China’s new crown control measures will affect economic growth. The US dollar and bond yields rose sharply, pushing the global stock market to the brink of a bear market. US stocks opened lower on Monday (9th), led by technology stocks.
Before the deadline,Dow Jones Industrial Averagedown nearly 450 points or nearly 1.35%,Nasdaq Composite Indexdown 1.69%,S&P 500 Indexdown 1.5%,Philadelphia SemiconductorThe index fell 2.36%.
A wave of risk aversion swept through global markets after the release of U.S. non-farm payrolls data last Friday, leaving little room for the Federal Reserve to raise interest rates and quantitative tightening plans. In addition, global market sentiment was further dampened after Chinese Premier Li Keqiang warned that the employment situation in China had become “severe” due to COVID-19 restrictions.
The Chicago Option Exchange’s (CBOE) Volatility Index (VIX), which measures market panic, soared to 34.28 at one point, on track for its highest closing level since March 8. Peter Andersen, founder of Andersen Capital Management, said that market volatility shows that investors have a lot of uncertainty about the future direction of the stock market.
Another sell-off in U.S. Treasuries pushed the 10-year U.S. Treasury yield to 3.183% from 3.124% on Friday, as investors remained focused on inflation and economic slowdown worries.
International oil prices fell on Monday, mainly due to the strong U.S. dollar and demand concerns due to China’s continued implementation of lockdown measures. Before the deadline, West Texas crude oil futures fell 2.17% to $107.38 a barrel.Brent CrudeFutures fell 2.07% to $110.06 a barrel.
In addition, the European Union’s embargo on Russian oil has been blocked again, with Hungary insisting on a five-year waiver, a move that could trigger requests from other countries such as Slovakia and Bulgaria.
Meanwhile, Russian Deputy Prime Minister Alexander Novak said international sanctions severely disrupted oil shipments in April, but Russian oil production is expected to rise this month.
For digital assets,bitcoinAffected by the sharp rise and fall of U.S. stocks last week and the weekly blackout, it once fell to $33,000 on Monday, which has fallen by more than half from its all-time high.bitcoinThe price has reached its lowest point since Jan. 24, and if the price breaks below $32,951, it will set a new low since July 2021. Before the deadline,bitcoinAt $33,066, it was down 4.8% in 24 hours.
As of 21:00 on Monday (9th) Taipei time:
Stocks in focus:
Rivian(RIVN-US) tumbled 13.34% to $24.95 a share in early trade
According to foreign media reports, Ford Motor (F-US) will sell 8 million of its roughly 102 million Rivian holdings, a move that comes as an insider lock-up period for selling shares expires. Sources said Ford will sell its stake through Goldman Sachs.
Uber(UBER-US) fell 0.65% to $25.90 a share in early trade
Uber plans to cut spending on marketing and incentives and will seriously consider hiring more people, according tomedia reports citing internal emails from the company. Chief Executive Dara Khosrowshahi said the company needed to streamline its operations to cope with a “dramatic shift” in investor sentiment.
Palantir(PLTR-US) fell 18.68% to $7.71 per share in early trade
Palantir Technologies, an American big data service company, announced its first-quarter financial results for the 2022 fiscal year before the US stock market opened on Monday. Although revenue increased by 31% to $446.4 million, which was better than market expectations of $443.4 million, earnings per share were only $0.02. It was $0.04 lower than market expectations. In addition, due to the slowdown in government business revenue growth, the company gave a gloomy second-quarter forecast, with revenue estimated at $470 million, an annual increase of 25%, lower than the market consensus of $483.9 million. , also lower than the growth rate of 49% in the same period last year.
Today’s key economic data:
- The final monthly growth rate of U.S. wholesale inventories in March is expected to be 2.3%, the previous value was 2.3%
- The monthly growth rate of US wholesale sales in March is expected to be 1.8%, the previous value of 1.7%
Wall Street Analysis:
Sebastien Galy, macro strategist at Nordea Asset Management, said that the U.S. stock market is quite expensive, especially technology stocks, the market does not know how high the Fed needs to raise interest rates to control inflation, and there is a sense of economic slowdown, there are many negative factors in the market .
Diana Mousina, an economist at AMP Investments, said the near-term outlook for stocks remains chaotic for now, amid fears of a sharp slowdown in the economy and a sharp rate hike by the Fed, with more downside possible.