The U.S. government on Friday (11th) warned that Russia may invade Ukraine at any time, prompting a surge in oil prices and heightened risk aversion. The yield on the 10-year U.S. Treasury bond fell sharply from 2% to around 1.91%, and the U.S. consumer confidence index rose sharply in February The drop also hit investor confidence. The panic index VIX soared. U.S. stocks suffered another setback. %, AMD collapsed by 10%.
Political and economic news, U.S. President Biden held a video conference with NATO and other allied leaders on Friday to discuss the ongoing buildup of Russian troops on the Ukrainian border. Russia announced on Friday that Russian President Vladimir Putin will meet on Saturday with Biden and French President Mark Macro holds a conference call.
Previously, Biden called on American citizens to leave Ukraine immediately. If the United States and Russia fight, it will be a world war. White House national security adviser Jake Sullivan warned U.S. citizens to leave within two days and that Russia might invade Ukraine at any time, possibly even during the Winter Olympics.
The market reported that the White House has warned the chip industry to diversify its supply chain as much as possible to prevent Russia from exporting key materials by stopping the supply of chips. 35% of the U.S. palladium supply comes from Russia, and more than 90% of the neon supply comes from Ukraine. This news hit hard. Chip stocks on Friday.
The “inflation behemoth” in the United States is on the rise, and Federal Reserve official Bullard called for faster rate hikes, sparking market discussions regarding possible moves by the Federal Reserve to raise interest rates by 2 yards next month, to end the balance sheet shrinkage early or to raise interest rates in an emergency.
However, these speculations are not the consensus of the Fed. Atlanta Fed President Raphael Bostic maintains his view of three or four rate hikes this year, and Richmond Fed President Thomas Barkin There is no need for a big rate hike all at once.
Before the deadline, according to data from Johns Hopkins University in the United States, the number of confirmed cases worldwide has exceeded 407 million, and the number of deaths has exceeded 5.79 million. More than 10.3 billion vaccine doses have been administered in 184 countries worldwide.
The performance of the four major U.S. stock indexes on Friday (11th):
- The Dow Jones Industrial Average fell 503.53 points, or 1.43 percent, to 34,738.06.
- The Nasdaq lost 394.49 points, or 2.78 percent, to end at 13,791.15.
- The S&P 500 lost 85.44 points, or 1.9 percent, to end at 4,418.64.
- The Philadelphia Semiconductor Index fell 170.86 points, or 4.83 percent, to 3,365.25.
Focus stocks
The five kings of science and technology are killing each other. Apple (AAPL-US) fell 2.02%; Meta (formerly Facebook) (FB-US) fell 3.74%; Alphabet (GOOGL-US) fell 3.13 percent; Amazon (AMZN-US) fell 3.59%; Microsoft (MSFT-US) fell 2.43%.
More than half of the Dow Jones components ended in the dark. Salesforce (CRM-US) fell 4.49%; Nike (US-US) fell 3.2 percent; Boeing (BA-US) fell 2.95%; Honeywell (HON-US) fell 2.48%; Chevron (CVX-US) rose 2.04%;
Fei Bancheng kills the center of gravity. AMD (AMD-US) plummeted 10.01%; NVIDIA (NVDA-US) fell 7.26%; Intel (INTC-US) fell 2.52 percent; Applied Materials (AMAT-US) fell 5.21%; Micron (MU-US) fell 1.38%; Qualcomm (QCOM-US) fell 5.42%.
Taiwan stock ADR only Chunghwa Telecom received red. TSMC ADR (TSM-US) fell 2.97%; ASE ADR (ASX-US) fell 3.84%; UMC ADR (UMC-US) fell 2.72%; Chunghwa Telecom ADR (CHT US) rose 0.72%.
Corporate News
Ford (F-US) fell 2.90% to 17.55 per share Dollar. Ford has announced its return to the Indian market and is considering setting up a factory in India to manufacture electric vehicles for export, which may also be sold in the Indian market. In addition, protests by Canadian truckers over the mandatory vaccine order continue to affect the U.S.-Canada cross-border bridge, hindering the flow of freight, and manufacturers such as Ford Motor have begun to look for alternative routes and air freight to deliver supplies.
Tesla (TSLA-US) fell 4.93% to 860 per share Dollar. Foreign media reported that Tesla wants to open a design center in Beijing as the company pays more attention to the growing Chinese electric vehicle market.
“Buy now, pay later” (BNPL) company Affirm suddenly released its earnings report early in the session on Thursday. The loss in the last quarter exceeded market expectations, and the annual financial forecast was unexpectedly weak. New Constructs CEO David Trainer called on Friday. Affirm’s stock price is only worth 10 Dollar，Affirm (AFRM-US) plunged 20.67% to 46.55 per share Dollar。
Economic data
The initial value of the US consumer confidence index in February was 61.7, the lowest since October 2011, lower than the market forecast of 67.3, and the final value in January was 67.2.
Wall Street Analysis
Edward Moya, senior market analyst at Oanda, said: “Equity traders were quick to press the ‘sell’ button following the U.S. expected Russia to continue its invasion of Ukraine.”
UBS analyst Art Cashin said: “The Ukrainian-Russian news does have something to do with the sell-off, but the main reason for the U.S. stock sell-off is that the Fed doesn’t seem to have a plan. I don’t think the Ukrainian-Russian war will happen, and there is always a way for this rumor to spread. Come.”
“Inflation has become a public concern, it has become a political issue, and the risk of monetary policy error is rising, and this is the number one risk to see in 2022,” said Florian Ielpo, head of macro at Lombard Odier Investment Managers.
Jeffrey Gundlach, chief executive of DoubleLine Capital, known as the “new bond king”, said that inflation has unexpectedly continued to soar, and the Fed is clearly behind the curve, predicting that the Fed will raise interest rates more than market expectations.
(The figures are updated before the deadline, please refer to the actual quotation)