The Federal Reserve maintained a hawkish tone and extinguished the hope of cutting interest rates next year. The British and European Central Banks followed up on Thursday (15th) to extend the rate hike cycle. The fear of economic recession increased, and the panic index VIX soared. The plates fell into one piece,Dow JonesThe closing plunged more than 760 points, and the S & P closed nearly 2.5% black.That fingerplunged more than 3%.fee halfCrash more than 4%.
In terms of politics and economy, the Federal Reserve announced on Wednesday that it would raise interest rates by 2 yards, while slowing down the pace of interest rate hikes. However, Fed Chairman Jerome Powell warned that recent signs of weakening inflation are not enough to convince the Fed to fight inflation. The swell war has been won.
The Federal Reserve hinted that the terminal interest rate may exceed 5% next year, and it will not cut interest rates until 2024. The market expects two more interest rate hikes next year, with each rate hike being at least 1 yard.
The Bank of England and the European Central Bank followed up to raise interest rates by 2 yards on Thursday and extended the rate hike cycle, exacerbating concerns regarding a global recession.
In addition, the United States has expanded its crackdown on China’s chip industry. The United States has included 36 technology companies, including Chinese memory chip maker YMTC, on a trade blacklist, including 21 major Chinese artificial intelligence (AI) chip companies, 9 States are suspected of seeking support for Chinese military modernization companies, among others.
The risk of delisting Chinese concept stocks has cooled down, and the U.S. audit of China concept stocks will come to an end. The U.S. Public Company Accounting Oversight Board (PCAOB) announced on Thursday that it has obtained the authority to conduct comprehensive audits of companies headquartered in China and Hong Kong, creating PCAOB For the first time ever.
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 651 million, and the number of deaths has exceeded 6.66 million. More than 12.7 billion doses of vaccines have been administered in 184 countries around the world.
On Thursday (15th), the performance of the four major US stock indexes:
- US stocksDow Jones IndexIt plunged 764.13 points, or 2.25 percent, to close at 33,202.22.
- NasdaqThe index plunged 360.36 points, or 3.23%, to close at 10,810.53.
- S&P 500 IndexIt plunged 99.57 points, or 2.49%, to close at 3,895.75.
- Philadelphia SemiconductorThe index plunged 115.86 points, or 4.17%, to close at 2,661.4 points.
Focus stocks
None of the five kings of science and technology was spared. apple (AAPL-US) down 4.69%; Alphabet (GOOGL-US) down 4.43%; Microsoft (MSFT-US) down 3.19%; Meta (META-US) down 4.47%; Amazon (AMZN-US) down 3.42%.
Dow JonesThe constituents are almost all black. IBM (IBM-US) plunged 5%; Disney (DIS-US) down 3.89%; Dow Chemical (DOW-US) down 3.56%; Salesforce (CRM-US) fell 3.2%; 3M (MMM-US) down 2.94%.
fee halfConstituent stocks all fell. NVIDIA (NVDA-US) down 4.09%; Applied Materials (AMAT-US) fell 4.63%; Texas Instruments (TXN-US) down 3.30%; Micron (MU-US) down 4.67%; Intel (INTC-US) down 3.93%; Qualcomm (QCOM-US) down 4.17%; AMD (AMD-US) down 3.48%.
ADRs of Taiwan stocks all fell. TSMC ADR (TSM-US) fell 2.46%; ASE ADR (ASX-US) fell 2.42%; UMC ADR (UMC-US) down 3.05%; Chunghwa Telecom ADR (CHT US) fell 0.52%.
Corporate News
Cathie Wood, who has the title of “Goddess of Stocks” and is in charge of Ark (Ark) investment management company, is firmly bullish on Tesla.TSLA-US) bucked the trend and closed at 0.55% to US$157.67 per share on Thursday, ending the decline for three consecutive trading days, and the market value still fell below the US$500 billion mark.
Weiteng Electronics (WDC-US) plunged 10.10 percent to $32.21 a share. Wall Street investment bank Goldman Sachs downgraded Western Digital’s stock rating to “sell”, reflecting the continued downturn in the flash memory market.
Netflix (NFLX-US) tumbled 8.63% to $290.41 per share. Foreign media Digiday quoted sources on Thursday as reporting that Netflix, the leading streaming media, failed to meet the viewing guarantees for programs provided to advertisers. Netflix allows advertisers to recover fees that have not yet been delivered.
Economic data
- U.S. November retail sales reported -0.6%, expected -0.1%, previous value 1.3%
- U.S. November retail sales reported an annual rate of 8.07%, the previous value of 7.35%
- U.S. core retail sales in November reported -0.2%, expected 0.2%, 1.3%
- The number of people claiming unemployment benefits in the United States reported 211,000 last week, 230,000 expected, and 231,000 previously
- The number of Americans continuing to receive unemployment benefits last week was reported at 1.671 million, expected to be 1.671 million, and the previous value was 1.67 million
- The monthly rate of industrial production in the United States in November was -0.2%, expected -0.1%, and the previous value was -0.1%
- U.S. December Philadelphia Fed manufacturing index reported -13.8, expected -10, previous value -19.4
- U.S. December New York Fed manufacturing index reported -11.2, expected -1, previous value 4.5
Wall Street Analysis
The signal that the terminal interest rate may reach more than 5% next year and maintain it for a period of time is the main culprit for the sharp drop in US stocks on Thursday.
Nadia Lovell, senior U.S. stock strategist at UBS Global Wealth Management, said: “We are not surprised by the decline in U.S. stocks. Whether the Fed will move in the direction expected by the market, the Fed sent a significantly different hawkish signal on Wednesday.”
“The Federal Reserve’s big rate hikes this year have been a powerful dose of medicine for many stock market investors who want to keep rates short, despite the recent moderation in inflation,” said Kent Engelke, economic strategist at Capitol Securities Management. But the Fed was adamant that it mightn’t lose the war on inflation, so there was a sell-off on Thursday.”
The numbers are all updated before the deadline, please refer to the actual quotation
