Federal Reserve (Fed) Chairman Jerome Powell warned at the hearing that the “hawk-like interest rate hike” may return, bank stocks collapsed, and large technology stocks were devastated. The main US stock index fell all the way on Tuesday (7th).Dow Jones IndexIt closed down more than 570 points. The S&P 500 was down more than 1.5 percent.Nasdaq Composite Indexfell by more than 1.2%,Philadelphia SemiconductorThe index fell more than 1%.
The bond market was also chilling, with the 2-year U.S. bond yield rising above 5% for the first time since 2007.10-Year U.S. Treasury YieldIt is regarding 103.50 basis points lower than the 2-year U.S. bond yield, which is the first time since September 22, 1981 that it has fallen below the -100 basis point integer psychological barrier. dollar soars,bitcoinBattered.
Federal Reserve Chairman Jerome Powell attended congressional hearings for two consecutive days from Tuesday. He said in the hearing on the first day: “Current trends indicate that the Fed’s anti-inflation work is not over yet. If the overall data shows that the central bank needs to “accelerate ‘Austerity policy, will prepare to ‘accelerate’ the pace of rate hikes.”
Powell’s remarks imply that “2 yards of interest rate hike in March” has become an option considered by the Federal Reserve, and the terminal interest rate may be higher than previously expected. Nick Timiraos, a Wall Street Journal reporter known as the “Fed’s megaphone,” wrote that this is the first time Powell has publicly admitted that the pace of raising interest rates by 1 yard is not invariable.
The mainstream opinion of the market then turned. According to CME’s FedWatch tool, traders bet that the Fed will raise interest rates by 2 yards in March. The probability jumped from regarding 30% before the hearing to more than 70%.
U.S.-China relations continue to be tense. Mark Warner, chairman of the U.S. Senate Intelligence Committee, pointed out that 12 Democratic and Republican senators will co-sponsor a new bipartisan bill that authorizes the U.S. Secretary of Commerce to take action once morest technology companies in six hostile countries, including TikTok, which is controlled by Chinese capital. . The six countries included in the bill are China, Russia, Iran, North Korea, Venezuela and Cuba.
The global new crown pneumonia (COVID-19) epidemic continues to spread. Before the deadline, the Johns Hopkins University (Johns Hopkins University) data pointed out that the number of confirmed cases worldwide has exceeded 676 million, and the number of deaths has exceeded 6.87 million.
The performance of the four major US stock indexes on Tuesday (7th):
- US stocksDow Jones IndexIt fell 574.98 points, or 1.72%, to close at 32,856.46.
- NasdaqThe index fell 145.4 points, or 1.25 percent, to close at 11,530.33.
- S&P 500 IndexIt fell 62.05 points, or 1.53%, to close at 3,986.37.
- Philadelphia SemiconductorThe index fell 32.17 points, or 1.07%, to close at 2,962.42 points.
Focus stocks
The five kings of science and technology all fell. apple (AAPL-US) fell 1.45%; Alphabet (GOOGL-US) down 1.34%; Microsoft (MSFT-US) down 1.06%; Meta (META-US) down 0.21%; Amazon (AMZN-US) fell 0.21%.
Dow JonesConstituent stocks are exhausted, only Merck (MRK-US) edged up by 0.15%. Walgreens Boots (WBA-US) down 3.7%; Kintor Heavy Industries (CAT-US) down 3.09%; Goldman Sachs (GS-US) down 3.07%; JPMorgan Chase (JPM-US) down 2.94%.
fee halfComponent stocks were broadly weaker. NVIDIA (NVDA-US) down 1.11%; AMD (AMD-US) rose 1.17%; Applied Materials (AMAT-US) fell 1.83%; Texas Instruments (TXN-US) down 0.57%; Intel (INTC-US) down 1.77%; Qualcomm (QCOM-US) down 2.63%; Micron (MU-US) down 2.23%.
ADRs of Taiwan stocks were mixed. TSMC ADR (TSM-US) down 0.81%; ASE ADR (ASX-US) flat; UMC ADR (UMC-US) fell 1.56%; Chunghwa Telecom ADR (CHT US) rose 0.13%.
Corporate News
In addition to Bauer’s “Eagle Strike”, Apple also raided the market on Tuesday. Apple’s official website launched a new bright yellow style of iPhone 14 and iPhone 14 Plus late at night, and Taiwanese fruit fans can start pre-ordering at 9 pm on March 10, March 14 Receive goods one following another every day. apple (AAPL-US) closed down 1.45 percent at $151.60 a share.
The US Department of Justice will block regional airline JetBlue’s $3.8 billion acquisition of low-cost airline Spirit, and airline stocks mostly bucked the trend. American airlines (AAL-US) received a bonus of 1.49%, United Airlines (UAL-US) rose 2.99%.
Salesforce (CRM-US) slipped 0.26% to $183.32 per share. Following Microsoft, Salesforce launched Einstein GPT, a software combined with ChatGPT, to help Salesforce salespeople, customer service agents and marketing personnel complete their work.
Facebook parent company Meta (META-US) edged down 0.21% to $184.51 per share. Meta has previously laid off 11,000 people, but it is reported that Meta CEO Zuckerberg is preparing for the next wave of layoffs, and thousands of people will be laid off as soon as this week.
Shopee’s parent company Donghai Group (Sea)’s revenue exceeded expectations in the fourth quarter of last year, and it unexpectedly made a profit. Donghai Group (SE-US) soared 21.84% to $80.06 per share.
Economic data
- U.S. January Wholesale Inventory Monthly Growth Rate Final – 0.4%, Expected – 0.4%, Previous – 0.1%
Wall Street Analysis
Tracy Chen, portfolio manager at Brandywine Global Investment Management, said: “Bauer’s ‘hawk’ this time is double-fold. On the one hand, he hinted that the terminal interest rate will be higher, and on the other hand, he said that the pace of interest rate hikes will also accelerate. Given the recent inflation data “He may have been too hasty in cutting rates to 1 yard earlier, and this adjustment might reduce the risk of the Fed falling behind the inflation curve.”
eToro U.S. investment analyst Callie Cox commented: “Bauer’s move is not surprising, but following such a strong rebound in U.S. stocks at the beginning of the year, this is a stern wake-up call for the market. The Fed’s top priority is Lower inflation, and for good reason.”
Torsten Slok, chief economist at Apollo Global Management, said: “Another strong non-farm payrolls report can force the Fed to raise interest rates by 2 yards, and the terminal interest rate is higher than 6%.”
The numbers are all updated before the deadline, please refer to the actual quotation