The treacherous situation in Ukraine and Russia continues to affect market tensions. Investors also weighed the news from the Federal Reserve. The 10-year U.S. bond yield fell nearly 1.92% on Friday (18th), with technology stocks and industrial stocks leading the decline. The index closed in the black and swallowed the black for the second consecutive week. The S&P fell 1.6% this week, and the Dow Jones and the Nasdaq fell 1.9% and 1.8% respectively.
It is worth noting that the Nasdaq fell into a death cross on Friday, that is, the 50-day moving average fell below the 200-day moving average for the first time since April 2020. This phenomenon is usually a long-term downward trend.
Political and economic news, mixed news from Ukraine and Russia, the good news is that US Secretary of State Antony Blinken will meet Russian Foreign Minister Sergei Lavrov next week, but the premise is that Russia will not invade Ukraine further, the Russian government Denying any plans to invade Ukraine, the military exercises are purely defensive and pose no threat to any country.
The bad news is that Russian President Vladimir Putin said on Friday that the situation in eastern Ukraine has deteriorated and the Biden administration has continued to warn of the risk of a possible Russian invasion of Ukraine, estimating that Russia has assembled as many as 190,000 troops in Ukraine and its surrounding areas. The largest military mobilization since World War II.
The Wall Street Journal reported on Friday that Russia might launch an attack within days, and U.S. officials confirmed that Biden would approve the deployment of more U.S. troops and military equipment to NATO ally Hungary. The leaders of the Group of Big Industrial Countries (G7) held a video conference to discuss the current Ukrainian and Russian issues.
The Fed’s No. 3 leader, New York Fed President John Williams, on Friday backed steady rate hikes starting in March with no reason for major action, suggesting a 2-yard rate hike is unlikely.In addition, following Fed officials have been caught in a stock speculation, the Federal Open Market Committee (FOMC) issued new rules on Friday, which will prevent Fed officials from trading stocks, bonds andcryptocurrencyA range of assets, including most of the restrictions, will come into effect on May 1.
Before the deadline, according to data from Johns Hopkins University in the United States, the number of confirmed cases worldwide has exceeded 420 million, and the number of deaths has exceeded 5.86 million. More than 10.5 billion vaccine doses have been administered in 184 countries worldwide.
The performance of the four major U.S. stock indexes on Friday (18th):
- The Dow Jones Industrial Average fell 232.85 points, or 0.68%, to close at 34,079.18 points.
- The Nasdaq lost 168.65 points, or 1.23 percent, to end at 13,548.07.
- The S&P 500 lost 31.39 points, or 0.72%, to end at 4,348.87.
- The Philadelphia Semiconductor Index fell 38.30 points, or 1.12 percent, to 3,384.30.
Focus stocks
The five kings of technology continued the previous day’s decline. Apple (AAPL-US) fell 0.94%; Meta (formerly Facebook) (FB-US) fell 0.75%; Alphabet (GOOGL-US) fell 1.61%; Amazon (AMZN-US) fell 1.33 percent; Microsoft (MSFT-US) fell 0.96%.
The Dow Jones components closed in the dark. Pioneering Heavy Industries (CAT-US) fell 1.39%; Goldman Sachs (GS-US) fell 0.87%; JPMorgan Chase (JPM-US) rose 0.47%; Chevron (CVX-US) fell 0.13%; Walmart (WMT-US) fell 0.64%.
Almost all of the constituent stocks in the fee lie down. Nvidia (NVDA-US) fell 3.53%; AMD (AMD-US) rose 1.30 percent; Applied Materials (AMAT-US) fell 2.29%; Micron (MU-US) fell 3.13%; Qualcomm (QCOM-US) rose 0.50%; Intel (INTC-US) fell 5.32%.
Taiwan stock ADR mixed up and down. TSMC ADR (TSM-US) fell 0.38%; ASE ADR (ASX-US) rose 0.54%; UMC ADR (UMC-US) fell 0.11%; Chunghwa Telecom ADR (CHT US) rose 0.59%.
Corporate News
Intel (INTC-US) fell 5.32% to 45.04 per share Dollar, the lowest since November 2020. At the Intel Investor Conference, it is expected that revenue will only increase in low single digits this year, and revenue will rise to mid-to-high single digits in 2023 and 2024, and revenue growth will reach 10%-12% in 2026. Gross profit margin will be 51%-53% in the next 3 years.
Analysts lowered their target prices for Intel on Friday, citing declining gross profit margins, a lack of free cash flow and “ridiculous” optimism in long-term forecasts.
Deere, the world’s largest manufacturer of agricultural machinery (DE-US) fell 3.00% to 369.10 per share Dollar.The company announced its financial report for the first quarter of the 2022 fiscal year before the market on Friday. Despite the impact of the supply chain and the epidemic, which led to rising production costs, Deere still delivered a dazzling report card, and was optimistic regarding the strong demand for agricultural machinery in the future, and raised its annual profit. It is expected to reach 6.7-7.1 billionDollar。
U.S. conglomerate giant Bizarre (GE-US) fell 5.92% to 92.69 per share Dollar, the worst single-day performance in three weeks. The company warned that supply chain bottlenecks, labor shortages and material inflation will weigh on its business, challenges that will continue until at least the middle of the year.
Wall Street Analysis
Louis Navellier, founder of Navellier & Associates, said the market is very concerned that Putin may launch aggression once morest Ukraine immediately following the Winter Olympics, which is deterring buyers who want to buy on the dip.
Fawad Razaqzada, an analyst at ThinkMarkets, said that despite some reports of a de-escalation in Ukraine and Russia this week, nothing fundamental has changed to stop investors from worrying regarding a possible Russian aggression once morest Ukraine, beyond that given soaring global inflation pressures and the Federal Reserve. Investor sentiment is likely to remain pessimistic amid fears of policy tightening.
Win Thin, head of global currency strategy at Brown Brothers Harriman, wrote that market conditions remain volatile and will remain risk-on and risk-off in the coming days.
Jay Woods, chief market strategist at DriveWealth Institutional, mentioned that the market should be more alert to the death cross of the main US stock index, which does not always mean that bad luck will come, but it means that US stocks may be in a longer-term downtrend.
Arnim Holzer, global macro strategist at Easterly EAB Risk Solutions, said it’s not just the Ukraine-Russia news that investors understand it won’t be an easy year.
(The figures are updated before the deadline, please refer to the actual quotation)