Wall Street ushered in the last US stock trading day of the month on Monday (31st), driven by strong buying interest in technology stocks and consumer discretionary stocks, the four major indexes collectively closed higher, TSMC ADR rose nearly 4.27%, Tesla soared more than 10%.
The S&P closed up nearly 2% on Monday, its best performance since April 2020 for two consecutive sessions, although the S&P monthly decline has converged from 10% to 5.3%, but still recorded the worst since March 2020 monthly performance.
The Dow closed in the red 406.39 points, helping to reduce its monthly loss to 3.3%. The tech-heavy Nasdaq closed up 3.41%, though it still fell as much as 8.9% in January, its worst month since March 2020.
Political and economic news, this week will usher in new catalysts for the market, including Alphabet, Amazon, Meta, AMD and Merk will announce the latest earnings, the US Department of Labor will release January non-farm payrolls data on Friday, and the market expects new jobs to be added. From the previous value of 199,000 fell to 173,000.
The White House warned that a surge in Omicron cases could distort the January jobs report. White House press secretary Jen Psaki said that due to the alarming contagiousness of Omicron, nearly 9 million people called for sick leave when the employment data was collected in early January, which happened to be the peak of Omicron infection, because the employment report released by the Labor Department was only in the first half of the month. data, it may have a disproportionate impact on the overall employment data, and even have the potential for negative growth.
The Federal Reserve is about to raise interest rates and shrink the balance sheet. This year’s FOMC vote committee, known as the “Eagle Queen”, Kansas Federal Reserve Bank President Esther George (Esther George) said that if the Federal Reserve takes more active action in the reduction of the balance sheet , may reduce the rate hike. San Francisco Federal Reserve Bank President Mary Daly said the Fed could raise interest rates as early as March in response to high inflation, but she warned against overreacting and tightening policy too quickly.
In terms of geopolitics, the Ukrainian-Russian war crisis threatens global security and the economy. The United Nations Security Council met on Monday to discuss the Ukrainian-Russian tension for the first time. The United States pointed out that if Russia invades Ukraine, the United States is ready to impose specific sanctions. The European Union announced on Monday that it was suspending the Russian-German Nord Stream 2 gas pipeline project, while Denmark was preparing to send military equipment to Ukraine. Russian President Vladimir Putin and French President Emmanuel Macron held a conference call on Monday for diplomatic discussions on the situation in Ukraine and European security.
Before the deadline, according to data from Johns Hopkins University in the United States, the number of confirmed cases worldwide has exceeded 376 million, and the number of deaths has exceeded 5.66 million. More than 10.1 billion vaccine doses have been administered in 184 countries worldwide. Canadian Prime Minister Justin Trudeau tested positive for COVID-19 on Monday, and his family was quarantined. Trudeau tweeted that he will follow public health guidelines while continuing to work remotely.
The performance of the four major U.S. stock indexes on Monday (31st):
- The Dow Jones Industrial Average rose 406.39 points, or 1.17%, to end at 35,131.86.
- The Nasdaq added 469.31 points, or 3.41 percent, to 14,239.88.
- The S&P 500 gained 83.7 points, or 1.89%, to 4,515.55.
- The Philadelphia Semiconductor Index rose 179.8 points, or 5.44 percent, to 3,483.2.
Focus stocks
The five kings of science and technology have risen together. Apple (AAPL-US) rose 2.61%; Meta (formerly Facebook) (FB-US) rose 3.83%; Alphabet (GOOGL-US) rose 1.46 percent; Amazon (AMZN-US) rose 3.89%; Microsoft (MSFT-US) rose 0.88%.
More than half of the Dow’s components ended in the red. Boeing (BA-US) rose 5.07%; Salesforce (CRM-US) rose 4.73 percent; Goldman Sachs (GS-US) rose 2.21 percent; Disney (DIS-US) rose 3.13 percent; Walgreens United Boots (WBA-US) fell 1.39%.
Fei and half constituent stocks rose sharply. ON Semiconductor (ON-US) soared 9.75%; AMD (AMD-US) surged 8.56%; NXP (NXPI-US) surged 8.44%; Intel (INTC-US) rose 2.28%; NVIDIA (NVDA-US) surged 7.21%; Applied Materials (AMAT-US) rose 4.33 percent; Micron (MU-US) rose 3.78%; Qualcomm (QCOM-US) rose 5.37%.
Taiwan stocks ADR collectively closed higher. TSMC ADR (TSM-US) rose 4.27%; ASE ADR (ASX-US) rose 4.58%; UMC ADR (UMC-US) rose 5.81%; Chunghwa Telecom ADR (CHT US) rose 0.93%.
Corporate News
After Citi upgraded Netflix stock to “buy” on the basis of promising subscriber growth prospects, Netflix continued to recover lost ground after the recent plunge, soaring 11.13% to 427.14 per share Dollar。
Tesla (TSLA-US), extending gains from last Friday, closed up 10.68% at 936.72 per share Dollar. Credit Suisse upgraded Tesla’s stock price to “buy”, and analysts at Credit Suisse noted: “Tesla’s operating margin has risen surprisingly, mainly due to lower costs, and we believe the strong operating margin is sustainable. of.”
Win Qatar Airways 34 billionDollarAfter the order, Boeing (BA-US) rose 5.07% to 200.24 per share Dollar。
Economic data
- The U.S. Chicago Purchasing Managers’ Index in January reported 65.2, expected 62, and the previous value of 64.3
Wall Street Analysis
Investor interest in growth stocks returned after big tech stocks such as Apple and Microsoft reported strong latest earnings last week, helping to ease concerns about an increasingly hawkish Federal Reserve.
JC O’Hara, chief market technician at MKM Partners, stressed on Monday: “While a market bottom is not a one-day event and there is still a 30% chance of a new low, investors should trust the bottoming process. We continue to see the economy as favorable, and the recent weakness is not a systemic issue but a valuation reset as investor expectations for future rate hikes change rapidly.”
Janney Montgomery Scott analysis pointed out: “The Fed was the main cause of market turmoil last week, and we suspect that traders and investors will remain highly sensitive to any developments in this area in the short term.”
The Fed hinted at a rate hike cycle starting in March 2022, and Deutsche Bank strategist Jim Reid believes: “The market will remain volatile until the market and the Fed stop catching up with each other in terms of rate hike expectations. Not surprising.”
“It doesn’t matter if the Fed raises rates in March is a yard or two, because it’s the equivalent of deciding whether to use a cup or a bucket to start emptying a swimming pool,” said Michael O’Rourke, chief market strategist at Jonestrading Institutional Services. …even though the bucket is larger than the cup, the difference is negligible relative to the task.”
(The figures are updated before the deadline, please refer to the actual quotation)