The U.S. stock market has entered the closing day of 2022. Against the background of the weak global economy, the rebound momentum of technology stocks failed to continue the day before, and energy stocks bucked the trend. The worst year since the financial tsunami, ending the past 3-year winning streak.
Dow Jones IndexIt closed more than 70 points black on Friday, with an annual decline of 8.8%. It will outperform other major indexes in 2022. The S&P was down 0.25% on Friday, for a 19.4% annual loss.NasdaqThe index fell 0.11%, fell 1% quarterly, and fell 33.1% yearly, continuing its downward trend for four quarters, the first time since the Internet bubble burst.
On the last trading day of this year, the size of the Fed’s overnight repurchase operation (RRP) hit a record high of 2.554 trillion U.S. dollars on Friday, surpassing the peak of 2.426 trillion U.S. dollars written on September 30, reflecting the normality at the end of the quarter The surge pattern of the market, and investment institutions insist on using reliable cash to weather the economic uncertainty.
In terms of politics and economy, the Federal Reserve Bank of St.Louis released a research report suggesting that an economic recession is coming. It mentioned that more than half of the 50 states in the United States showed signs of slowing economic activity, which is usually a key threshold for predicting the imminent recession. In a report from the Federal Reserve Bank of San Francisco, a change in the unemployment rate might also signal rising recession risks.
In Russia-Ukraine news, the Russian Ministry of Finance said on Friday that foreign investment institutions from “unfriendly” countries must sell their assets in Russia at half price or less, and the Russian government will charge an additional 10% levy.
Sino-Russian cooperative relations have become closer. Chinese President Xi Jinping and Russian President Vladimir Putin held a video meeting on Friday, saying that China and Russia should closely coordinate and cooperate in international affairs, increase mutual support on issues involving each other’s core interests, and work together to resist External forces interfere and sabotage.
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 659 million, and the number of deaths has exceeded 6.68 million. More than 12.7 billion doses of vaccines have been administered in 184 countries around the world.
Following the United States and many other countries, the United Kingdom and France announced on Friday that they will require passengers from China to provide negative new coronavirus test results within 48 hours before departure.
The performance of the four major US stock indexes on Friday (30th):
Focus stocks
The five kings of science and technology collect more hackers. apple (AAPL-US) rose 0.25%; Alphabet (GOOGL-US) down 0.25%; Microsoft (MSFT-US) down 0.49%; Meta (META-US) up 0.067%; Amazon (AMZN-US) fell 0.21%.
Dow JonesMore than half of constituent stocks were weak. The Home Depot (HD-US) down 1.42%; Traveler (TRV-US) down 1.03%; McDonald’s (MCD-US) fell 0.9 percent; Boeing (BA-US) rose 0.84%; JPMorgan Chase (JPM-US) up 0.66%.
fee halfComponent stocks were mixed. NVIDIA (NVDA-US) up 0.075%; Applied Materials (AMAT-US) rose 0.25%; Texas Instruments (TXN-US) rose 0.12%; Micron (MU-US) down 1.10%; Intel (INTC-US) rose 0.84%; Qualcomm (QCOM-US) rose 0.091%; AMD (AMD-US) down 0.077%.
Taiwan stock ADR collectively fell. TSMC ADR (TSM-US) down 1.99%; ASE ADR (ASX-US) fell 1.42%; UMC ADR (UMC-US) fell 2.97%; Chunghwa Telecom ADR (CHT US) fell 0.41%.
Corporate News
Tesla (TSLA-US) rose 1.12% to $123.18 per share, down as much as 69.20% year-on-year. Ark Investment, headed by Cathie Wood, bought 22,514 shares of Tesla on Thursday, with an estimated value of more than $2.74 million. This is the third consecutive day that Ark Investment has bought Tesla at a bargain.
After a large inflow of funds in late trading hours, Apple (AAPL-US) from black to red, closing up slightly by 0.25% to $129.93 per share, an annual decline of 28.61%. The Nikkei newspaper reported on Friday, citing sources, that Apple CEO Tim Cook asked Japanese Prime Minister Fumio Kishida to consider protecting user privacy while regulating smartphone app operations and fees.
Electric truck startup Nikola (NKLA-US) plummeted 9.62% to $2.16 per share. Nikola plans to sell $125 million in convertible notes to raise funds.
Ideal Auto ADR (LI-US) rose 4.67 percent to $20.40 a share. Li Auto announced that it will deliver more than 20,000 vehicles in December, up from 14,087 delivered in December 2021.
Economic data
- U.S. December Chicago PMI reported 44.9, expected 40, previous value 37.2
Wall Street Analysis
Investment sentiment has basically been in a haze throughout the year, mainly hit by deteriorating inflation and aggressive interest rate hikes by the Federal Reserve. Geopolitical concerns and mixed economic data are also worrisome.
Global stock markets will lose US$18 trillion in market value in 2022, the worst performance since the financial crisis, and bond market value will fall by 16%, the largest decline since 1990.
Looking ahead to the new year, some analysts believe that the pain is far from over and expect the bear market to continue until a recession comes or the Fed turns around. At the same time, some analysts predict that US stocks will hit new lows before rebounding in the second half of 2023.
“We’ve never seen an environment where equity and bond markets plummet at the same time, and the good news is we’re through 2022, the bad news is that 2023 might be a bumpy ride,” said Art Hogan, market strategist at B. Riley Wealth. , at least for the first few months. The economy might weaken through 2023 as the Fed continues to raise interest rates to fight inflation, but a mild recession might help stocks perform better in the second half of the year. “
Art Cashin, director of floor trading at UBS NYSE, warned: “I also think that the market environment will become colorful all of a sudden, like the Wizard of Oz, but we think that there may be bumps in the first quarter of US stocks, and it depends on the market environment.” With the Fed, the market downturn is likely to last longer.”
However, Oppenheimer strategist John Stoltzfus is optimistic: “If the Fed can prove next year that it can suspend inflation, then there is likely to be room for a 10% to 12% upside in U.S. stocks.”
The numbers are all updated before the deadline, please refer to the actual quotation
