Fed Chairman Powell delivered a hawkish speech at the annual meeting of global central banks on Friday (26th), suggesting the Fed will continue to aggressively raise interest rates in September, despite U.S. personal consumption expenditures (PCE) data showing that price pressures have eased in July. , prompted the panic index VIX to soar, US stocks plummeted all the way, and technology stocks rumbled.Dow JonesIt closed down more than 1,000 points, the worst single-day performance since May.S&P andthat fingerIt fell more than 3.3 percent, its biggest drop in two months.
The main U.S. stock index closed in the black for the second week in a row,Dow JonesIt plunged 4.2% this week, and the S&P fell about 4% this week.that fingerIt fell 4.4% this week.
Powell said at his annual Jackson Hole speech on Friday that the Fed’s job of lowering inflation has not been successful and will continue to raise interest rates for a while, warning of some pain ahead for the U.S. economy. He also mentioned that historical experience, the Fed is worried about prematurely halting interest rate hikes, and the labor market is more likely to be hit more powerfully.
The U.S. Public Company Accounting Oversight Board (PCAOB), the China Securities Regulatory Commission, and the Ministry of Finance signed an audit supervision cooperation agreement on Friday, which means a key step in strengthening cooperation to solve the audit supervision problems of Chinese stocks and avoid more than 200 Chinese companies from the United States.
SEC Chairman Gary Gensler pointed out Friday that the agreement only makes sense if the PCAOB can really conduct a full inspection and investigation of Chinese audit firms.
The global epidemic of new coronary pneumonia (COVID-19) continues to spread. Before the deadline, data from Johns Hopkins University in the United States pointed out that the number of confirmed cases worldwide has exceeded 599 million, and the number of deaths has exceeded 6.48 million. More than 12.5 billion vaccine doses have been administered in 184 countries worldwide.
The performance of the four major U.S. stock indexes on Friday (26th):
- US stocksDow JonesIt tumbled 1,008.38 points, or 3.03 percent, to end at 32,283.4.
- NasdaqThe index tumbled 497.55 points, or 3.94 percent, to end at 12,141.71.
- S&P 500 IndexIt tumbled 141.46 points, or 3.37 percent, to settle at 4,057.66.
- Philadelphia SemiconductorThe index tumbled 172.6 points, or 5.81 percent, to end at 2,798.4.
Focus stocks
The five kings of science and technology fell into one. apple (AAPL-US) fell 3.77%; Meta (META-US) fell 4.15%; Alphabet (GOOGL-US) fell 5.41%; Amazon (AMZN-US) fell 4.76%; Microsoft (MSFT-US) fell 3.86%.
Dow JonesConstituent stocks dived to kill. 3M (MMM-US) plummeted 9.54%; Salesforce (CRM-US) fell 4.99%; Nike (OF THE US) fell 4.36 percent; Home Depot (HD-US) fell 3.77%; Honeywell (HON US) fell 3.68%.
half feeAll the constituent stocks were bloodbathed. NVIDIA (NVDA-US) plummeted 9.23%; AMD (AMD-US) fell 6.17%; Applied Materials (AMAT-US) fell 5.90%; Micron (MU-US) fell 5.83%; Qualcomm (QCOM-US) fell 5.38%; Intel (INTC-US) fell 4.39; Texas Instruments (TXN-US) fell 4.41%.
Taiwan stock ADR all weakened. TSMC ADR (TSM-US) fell 3.23%; ASE ADR (ASX-US) fell 3.96%; UMC ADR (UMC-US) fell 5.17%; Chunghwa Telecom ADR (CHT US) fell 0.52%.
Corporate News
apple (AAPL-US) closed down 3.77 percent at $163.62 a share. Tianfeng International analyst Ming-Chi Kuo reiterated on Friday that the next-generation MacBook Pro and iPad Pro will use TSMC’s 5-nanometer chips, and will not be upgraded to 3-nanometer chips until 2023. In addition, it is rumored that the US Department of Justice will file an antitrust lawsuit against Apple. The Department of Justice is mainly concerned that after the US consumer electronics company Tile protested the listing of Apple’s wireless tracking hardware AirTag, Apple made Tile products at a disadvantage through its privacy policy.
Well-known personal computer (PC) maker Dell (DELL-US) fell 13.51% to $41.43 per share. Affected by the strong dollar and China’s epidemic prevention, Dell’s adjusted net profit per share in the second fiscal quarter ended July was $1.68, and revenue rose 9% to $26.43 billion, the lowest growth rate in nearly six quarters. Dell said it revised down its full-year forecast due to declining PC demand and rising operating challenges.
Brand clothing dealer GAP (GPS-US) fell 1.41 percent to $9.82 a share. GAP’s latest financial report beat expectations, with adjusted net earnings per share of 0.08 yuan, an unexpected profit, and an annual decrease of 8% in revenue to $3.86 billion, but GAP announced its withdrawal due to uncertain macroeconomic prospects and challenges in clearing inventory This year’s performance forecast.
IC design company Marvell Technology (MRVL-US) plunged 8.93% to $50.17 per share. Marvell Technology reported better-than-expected second-quarter earnings, but warned that supply chain disruptions will continue to weigh on near-term sales.
U.S. biotech firm Moderna has accused Pfizer/BioNTech of infringing its patents on a coronavirus vaccine without a license. Modena (MRNA-US) closed at 3.77%, Pfizer (PFE-US) fell 2.34%, BioNTech (BNTX-US) fell 4.01%.
Economic data
- The monthly rate of U.S. personal spending in July was 0.1%, expected to be 0.4%, and the previous value of 1.0%
- The monthly rate of personal income in the United States in July was 0.2%, expected 0.6%, the previous value was 0.7%
- The US July PCE price index reported an annual rate of 6.3%, expected 6.4%, and the previous value of 6.8%
- US July PCE price index monthly rate reported -0.1%, expected 0%, the previous value of 1%
- The US core PCE price index in July reported an annual rate of 4.6%, expected 4.7%, and the previous value of 4.8%
- US July core PCE price index reported a monthly rate of 0.1%, expected 0.3%, the previous value of 0.6%
- The monthly rate of wholesale retail inventory in the United States in July initially reported 0.8%, expected 1.3%, and the previous value was 1.8%
- The final value of the U.S. Michigan consumer confidence index in August was 58.2, expected to be 55.1, and the previous value of 51.5
Wall Street Analysis
At 1,301 words, Powell’s speech was the shortest speech by a Federal Reserve chairman since 2010 at the annual meeting of global central banks.
“The key takeaway from Powell’s speech in less than 10 minutes is to dispel the notion that the Fed will turn hawk to dove in the near term,” said Jake Jolly, senior investment strategist at BNY Mellon Investment Management.
Ryan Belanger, founder and managing director of Claro Advisors, said: “It feels like investors have been on the beach all summer and forgot that there are problems with the economy, and the Ball speech just refocused them.”
LPL Financial economist Jeffrey Roach said Powell made it clear that the Fed is now more important to fight inflation than to support economic growth.
Neil Dutta, head of economic research at Renaissance Macro Research, said: “The Powell speech revealed that the process of raising interest rates will not be painless, the Fed is adopting a front-loading strategy of raising interest rates, and the probability of a recession has increased because it seems that It’s the anti-inflation solution.”
The figures are updated before the deadline, please refer to the actual quotation.