© Archyde.com. Strong non-farm payrolls detonate aggressive rate hike expectations!Nasdaq fell 3%, leading losses in European and American stock indexes
Financial Associated Press, October 8 (Editor Zhao Hao) European and American stock markets fell significantly on Friday (October 7).
In terms of U.S. stocks, as of press time, the Nasdaq Composite Index, which is dominated by technology stocks, fell by more than 3.4%, the S&P 500 Index fell by more than 2.4%, and the Dow Jones Index fell by more than 1.8%.
Large technology stocks and chip stocks fell across the board. AMD fell by more than 10%, Nvidia fell by more than 6%, Intel, Tesla, Microsoft, and Amazon fell by more than 4%, and Apple fell by more than 3%.
Chinese concept stocks fell as a whole, and the Nasdaq Golden Dragon Index fell more than 4%. Among the popular Chinese concept stocks, Weilai fell by more than 8%, Ideal Motors fell by more than 6%, and Xiaopeng Motors fell by more than 5%.
European stock markets, which closed shortly before press time, also fell collectively. Germany’s DAX30 closed down 1.59%, while France’s CAC40 fell 1.17%.
Market analysis pointed out that the main reason for the lower stock market today is due to the too strong performance of the US employment situation report (“non-agricultural” report) released before the market. The report showed that non-farm payrolls in the United States increased by 263,000 following seasonal adjustment in September, slightly higher than the market expectation of 250,000.
In particular, the U.S. unemployment rate fell by 0.2 percentage points to a five-year low of 3.5%. Under the Fed’s “indiscriminate” interest rate hike policy this year, this particularly tight labor market has made investors very Accident. In addition, the 5% year-on-year increase in hourly wages in September may continue to support the country’s high prices.
In normal times, these are some “gratifying” data. However, the current high prices in the United States, the Fed wants to see a slight slack in the labor market and a slight cooling in the demand side, thereby achieving the bank’s goal of stabilizing inflation.
After the non-agricultural report, New York Fed President Williams and Minneapolis Fed President Kashkari also successively stated that more interest rate hikes will be offered in the future, reiterating the central bank’s task of stabilizing inflation to its 2% target.
The current market forecast is that the end of the Fed’s current rate hike cycle will return to around 4.6%, which is consistent with the dot plot released at the latest meeting. Earlier in the week, a slew of U.S. economic indicators weakened, which at one point sent the market to around 4.4%, sending stocks rebounding sharply on Monday and Tuesday.
Due to the expectation that the Federal Reserve will continue to raise interest rates aggressively, most US stock companies have begun to feel macroeconomic pressures. On Friday morning, Beijing time, two chip companies, AMD and Samsung, issued performance warnings, saying that their performance had contracted significantly due to the cooling of the global market.
In addition, this week OPEC also announced a decision to significantly reduce oil production. Some experts believe that the United States has limited ability to suppress international oil prices, which may push up energy costs once more, making central banks struggling to deal with inflation even worse.
As of press time, the US and Brent crude oil prices rose sharply. WTI crude oil futures for November delivery on the New York Mercantile Exchange rose more than 4.5% to $92.66 a barrel, returning to the $90 mark for the first time since the end of August; Brent crude oil It rose to $98 a barrel and began to look towards the hundred-yuan mark.
