along withUS dollar indexWeaker, investors assess whether the Fed’s hawkish interest rate hike is close to being priced in, the major US stock indexes generally rose on Friday (9th).
Dow JonesIt was up 177 points, or 0.56%, in early trade.S&P 500 Indexup 0.71%,Nasdaqrose 0.9%,Philadelphia SemiconductorThe index rose 1.94%.
U.S. stocks have turned higher from Thursday, on track to end a three-week losing streak. Markets will focus on next week’s U.S. inflation data, with the consumer price index report being the last before policymakers’ next meeting.
Investors had pulled out of U.S. stocks earlier, as the possibility of an economic downturn increased. Bank of America strategists, citing EPFR Global, pointed out that U.S. equity funds saw outflows of $10.9 billion in the week ended Sept. 7, with technology stocks leading the biggest outflow in 11 weeks.
After the European Central Bank raised interest rates by 75 basis points on Thursday,EURhit its highest level in three weeks. The Fed is also expected to raise interest rates by 75 basis points this month following Fed Chairman Powell reiterated his determination to curb inflation. As the UK is in a national period of mourning, the Bank of England has pushed back the date of its next interest rate decision by a week to September 22 to avoid the national mourning period following the death of Queen Elizabeth II.
U.S. Treasuries retreated, with policy-sensitive two-year yields still near their highest since 2007.
As of Friday 21:00 Taipei time:
- Dow JonesUp 177.19 points or 0.56%, temporarily reported 31951.71 points
- NasdaqUp 109.97 points or 0.93%, temporarily reported 11972.10 points
- The S&P 500 rose 28.43 points, or 0.71%, to 4034.61
- half feeUp 51.59 points or 1.94%, temporarily reported 2709.77 points
- TSMC ADR rose 0.95% to $80.97 per share
- 10-year U.S. Treasury yielddown 5 basis points to 3.27%
- NY Light crude rose 3.27% to $86.27 a barrel
- Brent CrudeUp 3.10% to $91.91 a barrel
- goldUp 0.6% to $1,731.20 an ounce
- US dollar indexDown 0.7% to 108.93
Stocks in focus:
Tesla (TSLA-US) rose 1.68% to $294.12
Tesla is considering building a lithium refinery on the Texas Gulf Coast to ensure a steady supply of key components for electric vehicle batteries, thereby boosting EV production.
Tesla said in an application it filed with the Texas Comptroller’s Office last month that if the application is approved, construction of the plant might begin in the fourth quarter of 2022, with commercial production expected by the end of 2024.
CEO Elon Musk has previously said that as lithium prices soar, Tesla may have to go directly into the lithium mining and refining business on a large scale.
Alibaba (BABA-US) rose 2.53% to $91.75
Driven by individual stocks such as Alibaba and Weilai, Chinese concept stocks generally strengthened in early trading.
Alibaba announced that the “2022 Tmall Double 11 Global Carnival Season” will start pre-sale at 8 pm on October 24, the first wave of sales on October 31, and the second wave of sales on November 10. This year’s double 11 sale time for the two waves will be advanced to 8 pm.
According to insiders, this year’s Double 11 Tmall will provide support measures for the entrepreneurial development of young people and small and medium-sized enterprises.
Virgin Galactic (SPCE-US) fell 3.74% to $6.05
Bernstein downgraded Virgin Galactic stock to underweight as the company delayed commercial space flights.
Investors have lost confidence in Virgin Galactic’s business as it delays flights while still burning through cash. Analyst Douglas Harned said in a note to clients that Virgin Galactic’s big risk situation might worsen over time.
Daily key economic data:
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Wall Street Analysis:
Sebastien Galy, senior managing director strategist at Nordea Asset Management, said the market has been very concerned regarding the actions of the European Central Bank and the Federal Reserve to try to control inflation. For now, inflation is undermining consumer confidence, and excessive tightening might tip the European and US economies into recession.
Wolf Research believes that there is a next phase in the bear market. They released a report on Friday, arguing that the first phase, as investors begin to grasp possible central bank tightening, has depressed valuations. They expect the second phase of declines to be driven by lower global growth expectations and a cycle of negative EPS revisions.
