Huida (NVDA-US) Last quarter’s bright financial report boosted the stock price to rise by more than 12% in early trading, driving technology stocks higher. The main US stock index opened higher on Thursday (23rd). Concerns about continuing to raise interest rates for a longer period of time.
before the deadline,Dow Jones Industrial Averagerose more than 100 points or nearly 0.3%,Nasdaq Composite Indexrose nearly 100 points or nearly 0.8%,S&P 500 Indexup nearly 0.6%,Philadelphia SemiconductorThe index rose more than 3%.
The minutes of the Fed’s meeting this month showed that almost all officials supported raising interest rates by 1 yard (25 basis points), and a few participants were in favor of raising interest rates by 2 yards (50 basis points) at this meeting. The Fed identified the risk of rising inflation as a key factor affecting the economic outlook, and the phrase “pause rate hikes” appeared only once in the meeting minutes.
Economists say increasingly tenacious inflation will prompt the Fed to raise interest rates to a higher peak level and maintain that level throughout this year. In addition, it is estimated that the interest rate will be raised by 1 yard (25 basis points) in March and May, pushing the interest rate to a high of 5.25%. Economists believe the Fed will keep interest rates on hold for the rest of the year.
U.S. Treasury yields have climbed since February as traders refreshed expectations for rate hikes and economic growth. That could add further headwinds to a rally in U.S. stocks, with risk assets sluggish last year as U.S. Treasury yields soared.Over the past month, benchmark U.S. Treasuries 10-year yieldIt has risen back above 3.9%, closing at 3.92% on Wednesday, well above the low of 3.32% in January this year and above the 3.88% level at the end of 2022.
Federal Reserve Bank of New York President John Williams said yesterday that the Fed is “absolutely” committed to reducing inflation to its 2% goal over the next few years by reducing demand amid supply constraints. As for how to achieve the goal, Williams believes that the Fed needs to take further steps to reduce demand in the face of constrained supply to stabilize prices.
In terms of economic data, the U.S. Department of Labor released the latest unemployment benefits data on Thursday. The adjusted number of initial jobless claims reported last week was 192,000, lower than market expectations of 200,000 and 3,000 less than the revised previous value of 195,000. The number of people has been below 200,000 for 6 consecutive weeks, and the overall job market is strong.
In addition, the latest data released by the U.S. Department of Commerce on the same day showed that the U.S. core personal consumption expenditures (PCE) price index was revised at an annualized rate of 4.3% in January, higher than the expected 3.9%, slowing for seven consecutive months and hitting a record high in October 2021. The smallest increase since last quarter; the revised annual rate of consumer spending in the last quarter was reported at 1.4%, expected 2%, the previous value was 2.1%; the US real gross domestic product (GDP) in the fourth quarter was revised at 2.7%, expected 2.9%, the previous value Value 2.9%.
As of 22:00 on Thursday (23rd) Taipei time:
Focus stocks:
Alibaba (BABA-US) rose 2.42 percent to $97.07 a share in early trade
Alibaba’s last quarter earnings report was impressive, with revenue up 2.1% toRMB 247.76 billion yuan, higher than market expectationsRMB 245.87 billion yuan; last quarter net profitRMB 45.746 billion yuan, higher than market expectationsRMB 44.437 billion yuan;RMB 19.26 yuan, higher than market expectationsRMB 16.57 yuan. Alibaba repurchased 45.4 million American depositary shares for about $3.3 billion last quarter.
Lucid(LCID-US) fell 12.91% in early trade to $8.69 per share
American electric car start-up company Lucid’s revenue in the last quarter increased nearly 9 times to US$257.7 million, but it was lower than the market estimate of US$303 million, which was US$26.392 million in the same period last year; its net loss was US$472.6 million, a loss of US$1.0457 billion; a loss of $0.28 per share, compared with a loss of $0.64 per share in the same period last year. Notably, due to manufacturing difficulties, Lucid produced only 7,180 electric vehicles last year, well below its original estimate of 20,000.
Amazon (AMZN-US) rose 0.26 percent to $96.04 a share in early trade
Amazon’s cloud-computing unit will expand its partnership with artificial-intelligence startup Hugging Face Inc., which is developing a rival to ChatGPT. Amazon Cloud Technologies will list Hugging Face’s products, including a language-enhancing tool that competes with OpenAI’s ChatGPT technology, for cloud customers who want to use the tools as building blocks for their own applications.
Today’s key economic data:
- In the fourth quarter of last year, the quarterly GDP growth rate of the United States was revised to 2.7%, which was expected to be 2.9%, and the previous value was 3.2%.
- In the fourth quarter of last year, the annual growth rate of GDP and consumer spending in the United States was revised to 1.4%, the previous value was 2.3%
- In the fourth quarter of last year, the annual growth rate of the personal consumption expenditures (PCE) price index in the United States was revised to 4.3%, which was expected to be 3.9%, and the previous value was 4.7%.
- The number of people claiming unemployment benefits in the United States reported 192,000 last week, compared with 200,000 expected and 195,000 previously
- The number of Americans continuing to receive unemployment benefits last week was reported at 1.654 million, expected to be 1.7 million, and the previous value was 1.691 million
Wall Street Analysis:
Mike Wilson, a Morgan Stanley strategist who has long been bearish on U.S. stocks, said that although U.S. stocks may fall this year, they are expected to fully recover their losses and hit record highs in 2024. Although there are still many problems facing US stocks in the short term, the market should be able to absorb all these problems and finally shake them off.