U.S. stocks rose in early trading on Wednesday (14th), but as the Federal Reserve announced a 2-yard rate hike and predicted that the end-point interest rate would exceed 5% next year, suggesting that interest rates would not be cut until 2024, the market gloomyly digested the hawkish policy, and U.S. stocks dived sharply.Dow JonesIt once plunged more than 700 points, and the decline narrowed in late trading, and all four major indexes closed in black.
Dow Jones Indexclosed down nearly 145 points,That fingerand the S&P index slipped more than 0.6 percent,fee halfThe index fell more than 1.5 percent.
The Federal Reserve announced on Wednesday that it would raise interest rates by 2 yards to 4.25% to 4.5%, a record high since 2007. The latest dot plot hints that most policymakers predict that the median end-point interest rate will reach 5.1% next year, which is 5% To the 5.25% range, higher than forecast in September, and will not start cutting interest rates until 2024.
Federal Reserve Chairman Jerome Powell reiterated on Wednesday that inflationary pressures remain high and labor shortages persist, and that restrictive policies may need to be maintained for a period of time.
The Federal Reserve predicts that the U.S. economy will only grow by 0.5% next year and the year following, and the unemployment rate is expected to increase to 4.6% by the end of next year. It is expected to remain at this level in 2024, higher than the current 3.7%.
After the Federal Reserve, central banks such as the European Central Bank, the United Kingdom, Mexico, Norway, the Philippines, Switzerland and Taiwan will also announce interest rate decisions one following another.
In terms of geopolitics, the market reported that the Biden administration plans to remove some Chinese entities from the unverified list in order to strengthen cooperation with the Beijing government. However, there is also news that the United States plans to put China’s Yangtze River Storage (YMTC) and 35 other companies on the trade blacklist as soon as this week, preventing them from purchasing American components.
The novel coronavirus pneumonia (COVID-19) global 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 650 million, and the number of deaths has exceeded 6.65 million. More than 12.7 billion doses of vaccines have been administered in 184 countries around the world.
On Wednesday (14th), the performance of the four major US stock indexes:
The 11 S&P sectors were blood-stained, with the financial and materials sectors leading the decline, and only healthcare bucked the trend and closed higher.
Focus stocks
The five kings of technology were mixed. apple (AAPL-US) down 1.55%; Alphabet (GOOGL-US) down 0.59%; Microsoft (MSFT-US) up 0.12%; Meta (META-US) rose 1.20%; Amazon (AMZN-US) down 0.98%.
Dow JonesMore than half of the constituent stocks fell. Merck (MRK-US) rose 1.24%; Boeing (BA-US) rose 0.6%; Goldman Sachs (GS-US) fell 2.25%; American Express (AXP-US) down 2.16%; Nike (OF THE US) fell 1.24%.
fee halfConstituent stocks were generally weak. NVIDIA (NVDA-US) down 2.20%; Applied Materials (AMAT-US) fell 1.99%; Texas Instruments (TXN-US) down 0.95%; Micron (MU-US) down 1.18%; Intel (INTC-US) down 1.64%; Qualcomm (QCOM-US) down 1.44%; AMD (AMD-US) down 3.80%.
Taiwan stock ADR received more black. TSMC ADR (TSM-US) down 0.61%; ASE ADR (ASX-US) flat; UMC ADR (UMC-US) down 0.96%; Chunghwa Telecom ADR (CHT US) fell 0.30%.
Corporate News
Alibaba ADR (BABA-US) fell 0.56 percent to $90.91 a share. According to foreign media reports, ARM, a chip design company owned by Softbank, has determined that the United States and Britain will not approve the company’s export of technology licenses to China, which means that Chinese technology giants such as Alibaba cannot purchase the most advanced chip design technology from ARM.
Amazon (AMZN-US) closed down 0.98 percent to $91.58 a share. Amazon is facing a $280 million lawsuit from Gilimex, a Vietnamese warehouse system manufacturer. The latter accused Amazon of suddenly reducing orders following growth in online spending slowed this year, putting pressure on manufacturers to overcapacity and raw materials.
Tesla (TSLA-US) continued to fall 2.58% to US$156.80 per share on Wednesday, falling for the third consecutive trading day, and its market value fell below US$500 billion. Goldman Sachs lowered its price target on Tesla to $235 per share from $305 per share, citing weak demand.
Since September this year, Tesla has fallen by more than 40%, while the S&P has risen by nearly 12% since September. Investors believe that the trend of Tesla’s stock price has nothing to do with the overall economy, and all of this is due to Musk’s distraction. Twitter’s fault.
Delta Airlines (DAL-US) rose 2.69% to $34.31 per share. Delta Air Lines raised its forecast and issued an upbeat outlook for 2023 due to strong travel demand.
Economic data
- The monthly rate of the U.S. import price index in November was -0.6%, expected -0.5%, and the previous value was -0.4%
- The monthly rate of the US export price index in November was -0.3%, expected -0.4%, and the previous value was -0.4%
Wall Street Analysis
Seema Shah, chief global strategist at Principal Asset Management: “The Fed remains coy regarding the possibility of a recession, but with most officials seeing risks tilted to the downside, it’s fair to say they’re far more concerned regarding the outlook than they’d like to be.” Admitting more, which might be the death knell for the recent bear market rally, no interest rate cut next year, etc. All these messages need to be digested before the recession arrives.”
“Slower growth forecasts, but more rate hikes,” said Dan Suzuki, deputy chief investment officer at Richard Bernstein Advisors. “It’s not a good combination for the market. The bigger uncertainty in the market right now is economic growth, not the Fed. Will.”
The numbers are all updated before the deadline, please refer to the actual quotation