Falling U.S. Treasury yields boosted large-cap growth and tech stocks, with tech-heavy stocksNasdaq Composite Indexrose nearly 2.5%, traders began to speculate that global central banks may slow down the pace of aggressive monetary tightening to prevent a hard landing of the economy, the main US stock index opened higher on Tuesday (4th).
Before the deadline,Dow Jones Industrial Averagerose more than 550 points or nearly 1.92%,Nasdaq Composite Indexup nearly 270 points or nearly 2.5%,S&P 500 Indexrose nearly 2.2%,Philadelphia SemiconductorThe index rose more than 3 percent.
A good start to the fourth quarter in global markets boosted U.S. index futures and U.S. Treasuries, while investors began betting that the Federal Reserve’s tightening of monetary policy would end in just a few months.US dollar indexSecond day of losses, U.S.10-year Treasury yieldIt also continued to fall.
The market believes that the Fed’s three violent interest rate hikes by 3 yards (75 basis points) have begun to have an impact on the economy. Yesterday’s ISM manufacturing data was far below expectations, supporting the Fed’s dovish tendencies. It is estimated that the federal funds rate will rise by March next year. Topped below 4.5%.
At the same time, there is also growing investor speculation that the global wave of damaging monetary tightening is nearing an end, especially as the RBA raised interest rates by only 1 yard (25 basis points) on Tuesday, lower than the previous forecast of 2 yards (50 basis points). basis points).
Money market signals show that the Fed will only raise interest rates by a maximum of 125 basis points before March, which is down from market expectations for a maximum of 165 basis points of interest rate hikes following the third rate hike last month.
U.S. 10-year Treasury yieldYields of 2-year government bonds and 2-year government bonds both fell, reporting 3.599% and 4.0637% respectively before the deadline, still showing an inverted trend; the dollar once fell to a new low since September 22, before the deadline.US dollar indexfell to 110.
GBPAgainst the greenback, it was trading higher at $1.1354, as the cancellation of plans eased nervousness regarding the government’s fiscal health, althoughGBPThe outlook is still cloudy.
In terms of energy, the Organization of the Petroleum Exporting Countries and its partner countries (OPEC+) announced on Wednesday (5th) that they will announce a production cut plan, which will cut daily output by 1 million barrels. International oil prices both rose on Tuesday, rising nearly 3% before the deadline.
As of 21:00 on Tuesday (4th) Taipei time:
Stocks in focus:
Tesla (TSLA-US) rose 3.93% to $251.92 a share in early trade
Tesla’s third-quarter sales report announced yesterday was not as good as expected, and its stock price plummeted more than 8% to a two-month low, but the Ark Fund of Cathie Wood bought regarding 132,200 Tesla shares on the same day , the fund’s first purchase of the company’s stock since mid-June and the second time this year. Shares of Tesla were buoyed up nearly 3 percent in premarket trading.
Rivian(RIVN-US) rose 6.84% to $34.07 a share in early trade
US electric vehicle startup Rivian announced yesterday that it produced more than 7,000 vehicles in the third quarter, an increase of regarding 67% quarter-on-quarter, and reiterated that its full-year production target of 25,000 remained unchanged. The stock rose nearly 7% on the good news before the market opened on Tuesday.
Huida (NVDA-US) rose 3.38% to $129.35 a share in early trade
Foreign media reported that the United States plans to announce new export restrictions to China to prevent Chinese companies from obtaining technology that can be used for high-performance computing. Intelligent (AI) devices.
After the news came out, Huida, Broadcom (AVGO-US), Super Micro (AMD-US), Intel (INTC-US) and other chipmakers rallied as market analysts pointed to a U.S. move that might limit competition from abroad but might also hit sales.
Today’s key economic data:
- The monthly growth rate of U.S. durable goods orders in August was revised to -0.2%, the previous value was -0.2%
- The monthly growth rate of US factory orders in August was 0%, expected 0.2%, the previous value – 1%
- The number of JOLTs job openings in the United States in August reported 10.053 million, an estimate of 10.775 million, and the previous value of 11.17 million
Wall Street Analysis:
Stephen Innes, managing partner at SPI Asset Management, said Australia’s action offered the possibility of an early exit for the extreme hawks and should provide some support for stocks if other central banks followed suit.
Sevens Report’s Tom Essaye said U.S. stock futures and European stocks were solidly higher in the pre-market on Tuesday, while bond yields continued to fall along with the dollar, and bond and stock prices rebounded on renewed expectations that “the Fed has turned less hawkish.”
