The higher-than-expected inflation data increased the pressure on the Federal Reserve to raise interest rates. The main US stock index fell by more than 1% on Friday (24th). The 2-year US bond yield rose by more than 4.8%, hitting the highest level since 2007 , the dollar strengthened.
Dow Jones Industrial AverageIt closed down more than 330 points on Friday,Nasdaq Composite Indexdown nearly 1.7%,S&P 500 IndexReceive more than 1% black,Philadelphia SemiconductorThe index was down nearly 1.8 percent.
On a weekly basis, the S&P fell 2.7% this week, the worst week since December 9 last year.Dow JonesIt fell nearly 3.0 percent for the week, its fourth straight weekly decline.That fingerIt fell 3.3 percent for the week, its second weekly loss in three.
According to data news, the US personal consumption expenditures (PCE) price index in January increased by 0.6% month-on-month and 5.4% year-on-year, far higher than market expectations. The Fed’s preferred inflation indicator, the core PCE price index in January following excluding food and energy prices, rose by 4.7% year-on-year, which was higher than market expectations. market expectation.
In terms of politics and economy, five Wall Street economists released a new research report on Friday, referring to the past 16 anti-inflation experiences in the United States, Germany, Canada and the United Kingdom, and judged that Fed officials may need to raise the terminal interest rate to 6.5 % to curb inflation.
Federal Reserve Bank of Cleveland President Loretta Mester said Friday that interest rates may need to continue to rise to bring inflation back to acceptable levels. The hawk general, James Bullard, president of the Federal Reserve Bank of St. Louis, is confident that the central bank’s interest rate hike will not plunge the economy into recession, and a soft landing is feasible.
On the first anniversary of Russia’s invasion of Ukraine, the United States expanded sanctions on Russia and Belarus on Friday, and the US Department of Commerce added nearly 90 companies to the entity list. The US also announced a 200% import tariff on all Russian-produced aluminum and aluminum products, effective March 10.
The U.N. General Assembly on Thursday passed a resolution calling for “Russian withdrawal” and a lasting peace in Ukraine, with 141 of the U.N.’s 193 member states voting in favor, with Ukraine overwhelmingly backing it.
The global new crown pneumonia (COVID-19) 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 674 million, and the number of deaths has exceeded 6.86 million.
The performance of the four major US stock indexes on Friday (24th):
- US stocksDow Jones IndexIt fell 336.99 points, or 1.02 percent, to close at 32,816.92.
- NasdaqThe index fell 195.46 points, or 1.69 percent, to close at 11,394.94.
- S&P 500 IndexIt fell 42.28 points, or 1.05%, to close at 3,970.04.
- Philadelphia SemiconductorThe index fell 53.69 points, or 1.80%, to close at 2,935.11 points.
Focus stocks
The five kings of science and technology are bloody. apple (AAPL-US) down 1.80%; Alphabet (GOOGL-US) down 1.94%; Microsoft (MSFT-US) down 2.18%; Meta (META-US) down 0.96%; Amazon (AMZN-US) down 2.42%.
Dow Jonesconstituents. Boeing (BA-US) fell 4.8%; Amgen (AMGN-US) down 1.67%; Nike (OF THE US) fell 1.6%; Honeywell (HON US) down 1.53%; Dow Chemical (DOW-US) rose 1.05%.
fee halfConstituent stocks were generally in the doldrums. NVIDIA (NVDA-US) down 1.60%; AMD (AMD-US) down 2.08%; Applied Materials (AMAT-US) fell 1.42%; Texas Instruments (TXN-US) down 1.56%; Intel (INTC-US) down 1.84%; Qualcomm (QCOM-US) down 1.47%; Micron (MU-US) fell 0.97%.
All ADRs of Taiwan stocks were weak. TSMC ADR (TSM-US) fell 2.19%; ASE ADR (ASX-US) down 0.56%; UMC ADR (UMC-US) down 1.95%; Chunghwa Telecom ADR (CHT US) down 0.68%.
Corporate News
apple (AAPL-US) fell 1.80 percent to $146.71 a share. TF International Securities analyst Ming-Chi Kuo tweeted that Luxshare Precision is expected to lead the development and mass production of Apple’s first-generation Augmented Reality (AR) and Mixed Reality (MR) headsets. Apple’s second-generation AR/MR headset has two high-end and low-end models, which are developed and mass-produced by Likai and Hon Hai respectively. It is expected that both models may be launched in 2025.
Boeing (BA-US) fell 4.83% to 198.15 yuan per share, falling below the $200 mark. Boeing announced Thursday that it has temporarily halted deliveries of its 787 Dreamliner jets to allow for additional analysis over safety concerns over airframe components.
CNN parent company Warner Bros. Discovery (WBD-US) slipped 1.14 percent to $15.55 a share. Warner Bros. Discovery’s revenue in the fourth quarter of last year was US$11.01 billion, with a loss of 86 cents per share, far worse than market expectations, and a loss of US$7.371 billion for the whole year
Adobe (ADBE-US) tumbled 7.63% to $320.54 per share. The U.S. Department of Justice plans to sue to block Adobe’s $20 billion acquisition of design software startup Figma, Bloomberg reported, citing unnamed sources.
Beyond Meat (BYND-US) soared 10.15% to $18.88 per share. Beyond Meat reported a loss of $1.05 per share in the fourth quarter, missing estimates of $1.18. Revenue was $79.9 million, beating estimates of $75.7 million.
Economic data
- The monthly rate of personal spending in the United States was reported at 1.8% in January, expected to be 1.3%, and the previous value was -0.1%
- The monthly rate of personal income in the United States was reported at 0.6% in January, expected to be 1.0%, and the previous value was 0.3%
- U.S. personal real consumption monthly rate reported 1.1% in January, expected 1.1%, previous value – 0.3%
- U.S. January PCE price index reported an annual rate of 5.4%, expected 5.0%, and the previous value of 5.3%
- The monthly rate of the PCE price index in the United States in January was 0.6%, expected 0.4%, and the previous value was 0.2%
- The core PCE price index in the United States reported an annual rate of 4.7% in January, expected to be 4.3%, and the previous value to be 4.6%.
- The core PCE price index in the United States reported a monthly rate of 0.6% in January, expected to be 0.4%, and the previous value to be 0.4%
- The final value of the U.S. Consumer Confidence Index in February is expected to be 66.4, the previous value is 66.4
Wall Street Analysis
Peter van Dooijeweert, an analyst at Man Solutions, said: “The PCE data is higher than market expectations. It is good to raise interest rates when the economic data is good and a hard landing is avoided. It is unacceptable for the market to be forced to deal with a pick-up in inflation .”
“The risk of a no-landing might force the Fed to raise interest rates and prolong them, and the risk of ultimately pushing the economy into a mild recession is greater, so the market simply wants to be risk-averse,” said Evercore analyst Krishna Guha.
Liz Ann Sonders, chief investment strategist at Charles Schwab, sees more reasons for the market downturn than the personal consumption expenditures data. “Not only are investors worried regarding rising inflation or the Fed having to keep tightening policy for longer, but there’s a lot of speculative froth right now, and when sentiment gets a little too frothy, markets tend to go once morest the trend,” Sonders said. direction to move.”
The numbers are all updated before the deadline, please refer to the actual quotation