Investors are worried that the Federal Reserve (Fed) will fight inflation and raise interest rates aggressively, which will lead to a recession. The main US stock indexes opened lower on Friday (23rd),Dow Jones Industrial Averagefell below 30,000 points.
Before the deadline,Dow Jones Industrial Averagedown nearly 400 points or nearly 1.3%,Nasdaq Composite Indexdown nearly 200 points or nearly 1%,S&P 500 Indexfell nearly 1.7%,Philadelphia SemiconductorThe index fell more than 2 percent.
The UK government has launched a $45 billion plan to boost domestic demand and save an economy teetering on the brink of recession.GBPincluding scrapping plans to increase corporate tax to 25%, scrapping the top 45% tax rate, slashing stamp duty, and more.
The tax cuts are said to be larger than those introduced in 1988 under the “Iron Lady” Margaret Thatcher, and are the largest in half a century.
British government bonds fell sharply,GBPFalling to a fresh 37-year low, markets have priced in a more aggressive pace of tightening in the UK to offset fiscal stimulus. at the same time,US dollar indexRefresh High, U.S. 10-year Treasury yieldclimbed to a more than 10-year high.
While the U.S. dollar continued to rise and markets expected the Fed to further tighten interest rates by 1.25 percentage points by the end of the year, a surprise rate cut by Turkey’s central bank pushed the lira to a record low, its biggest weekly drop in 23 years.
Goldman Sachs willS&P 500 IndexThe year-end target was cut to 3,600 from 4,300, mainly due to the Federal Reserve’s higher rate hike path.On the other hand, sinceEURThe region’s September Markit Manufacturing Purchasing Managers’ Index (PMI) reported 48.5, less than the expected 48.7, and the previous value was 49.6. Strategists have given up their expectations for a year-end rally in European stock markets.
Goldman Sachs also said that the outlook for U.S. stocks is “very uncertain”, with inflation, economic growth, interest rates, earnings and valuations all changing, and most stock investors believe a hard landing is “inevitable.” The bank also noted that in the short term, investors’ focus will shift from interest rate concerns to corporate earnings.
In terms of data, the initial value of the Markit manufacturing PMI in the United States in September was 51.8, which was better than market expectations of 51.1, and the previous value was 51.5. The initial value of PMI was reported at 49.3, which was better than the previous value of 44.6.
As of 21:00 on Friday (23rd) Taipei time:
Stocks in focus:
FedEx (FDX-US) fell 2.19% to $151.16 a share in early trade
FedEx (FedEx) on Thursday announced that its revenue and profit in the last quarter were not as good as expected. It also announced that the package shipping fee for most services will increase by an average of 6.9% in January next year, and it will implement cost-saving measures this year, hoping to save money. The next $2.3 billion to $2.7 billion cost. The company’s Express, Ground and Home Delivery services will increase package rates by an average of 6.9%, and Freight services will see an average increase of 6.9% to 7.9%.
Boeing (BA-US) fell 2.39% to $135.39 a share in early trade
Boeing will pay $200 million and then-CEO Dennis Muilenburg $1 million as a settlement for allegedly misleading investors following two 737 Max crashes, the U.S. Securities and Exchange Commission (SEC) said on Thursday. Neither Boeing nor Muilenburg has admitted nor denied its findings, the SEC said.
Qualcomm (QCOM-US) fell 3.34% to $119.56 a share in early trade
Qualcomm announced at its inaugural Automotive Investor Conference that thanks to the widespread adoption of Snapdragon digital chassis solutions in the automotive industry, the total order book for its automotive business has grown to $30 billion. This growth represents a more than $10 billion expansion in the total valuation of Qualcomm’s automotive business orders since it reported its fiscal 2022 third-quarter earnings.
Today’s key economic data:
- U.S. September Markit manufacturing PMI initial value was 51.8, expected 51.1, the previous value was 51.5
- U.S. September Markit services PMI initial value was 49.2, expected 45, the previous value was 43.7
- U.S. September Markit Composite PMI initial value was 49.3, the previous value was 44.6
Wall Street Analysis:
“There’s been very little positive news right now, and this sentiment might eventually spark some level of selling … we’re definitely close to near-term lows,” said Rick Meckler, a partner at Cherry Lane Investments.
Chris Williamson, chief business economist at S&P Global, said: “As companies’ business conditions deteriorate and price pressures increase in relation to soaring energy costs,EURarea may decline. “Preliminary PMI data suggest the economy will contract by 0.1% in the third quarter.”
Bank of America Securities strategist Michael Hartnett called the current bond crash “the third great bond bear market,” calling the situation “extremely dire.” He said a bond collapse would threaten credit events and the settlement of global transactions, including those in the U.S. dollar, U.S. tech stocks, private equity and more.
