As the Federal Reserve is expected to maintain a hawkish stance for a longer period of time, coupled with a surge in concerns regarding the economic recession and the US debt ceiling, US stocks opened lower on Thursday (19th), Norwegian Cruise Line led the decline in consumer discretionary stocks, Northern Trust And Charles Schwab plummeted, financial stocks under pressure.
The four major indexes closed in ink,Dow Jones IndexIt fell more than 250 points, erasing all gains so far this year, the S & P 500 index fell 0.76%,NasdaqThe index fell nearly 1%,Philadelphia SemiconductorThe index tumbled more than 2.8 percent.
On the data front, the number of Americans claiming unemployment benefits fell to 190,000 early last week, the lowest level since September last year, highlighting that the job market remains tight and might support wage growth and inflation.
In terms of political and economic news, the market pays attention to the speeches of Fed officials and judges the future direction of monetary policy. Lael Brainard, vice chairman of the Federal Reserve, said on Thursday that although inflation is showing signs of slowing down, it is still too high. The Federal Open Market Committee (FOMC) is likely to raise interest rates by 1 yard next time. Time remains high to further cool inflation.
Boston Fed President Susan Collins has argued that restoring price stability remains a top priority, supporting a more modest pace of rate hikes, with the end point rising to just above 5 percent and then staying there for a while.
Comments from JPMorgan Chase & Co. Chief Executive Jamie Dimon also weighed on market sentiment. In an interview with the World Economic Forum, Dimon said the recent slowdown in inflation was due to temporary factors and that the federal funds rate might rise above 5.0%. If the U.S. experiences a mild recession, interest rates might even go as high as 6%.
The U.S. debt default crisis is looming, federal government spending hit the debt ceiling on Thursday, and the U.S. Treasury Department began to take special measures to prevent the U.S. from defaulting. U.S. Treasury Secretary Yellen said that the moratorium on debt issuance began on January 19 and will last until June 5. The White House and House Speaker McCarthy are considering holding a meeting on the debt ceiling issue.
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 668 million, and the number of deaths has exceeded 6.73 million. More than 12.7 billion doses of vaccines have been administered in 184 countries around the world.
On Thursday (19th), the performance of the four major US stock indexes:
- US stocksDow Jones IndexIt fell 252.4 points, or 0.76%, to close at 33,044.56.
- NasdaqThe index fell 104.74 points, or 0.96%, to close at 10,852.27 points.
- S&P 500 IndexIt fell 30.01 points, or 0.76%, to close at 3,898.85.
- Philadelphia SemiconductorThe index fell 79.03 points, or 2.83 percent, to close at 2,710.44 points.
Focus stocks
The five kings of science and technology have their ups and downs. apple (AAPL-US) rose 0.044%; Alphabet (GOOGL-US) rose 2.12%; Microsoft (MSFT-US) down 1.65%; Meta (META-US) rose 2.35%; Amazon (AMZN-US) down 1.86%.
Dow JonesComponent stocks were mixed. The Home Depot (HD-US) down 3.96%; 3M (MMM-US) down 3.52%; American Express (AXP-US) fell 2.37%; Kintor Heavy Industry (CAT-US) down 2.33%; UnitedHealth (UNH-US) rose 1.71%.
fee halfConstituent stocks are killing the Quartet. NVIDIA (NVDA-US) down 2.78%; AMD (AMD-US) down 4.00%; Applied Materials (AMAT-US) fell 3.23%; Texas Instruments (TXN-US) down 1.63%; Intel (INTC-US) down 1.35%; Qualcomm (QCOM-US) down 3.65%; Micron (MU-US) fell 0.27%.
Taiwan stock ADR received more black. TSMC ADR (TSM-US) down 1.20%; ASE ADR (ASX-US) fell 1.41%; UMC ADR (UMC-US) fell 2.11%; Chunghwa Telecom ADR (CHT US) rose 0.63%.
Corporate News
American streaming video giant Netflix (NFLX-US) closed 3.23% black at US$315.78 per share, and its share price rose more than 7% following hours. Netflix announced its latest financial report following the close on Thursday. Although revenue and profit in the fourth quarter of last year were not as expected, the number of subscribers increased by 7.66 million, much higher than the company’s expected 4.5 million.
Tesla (TSLA-US) fell 1.25 percent to $127.17 a share.
apple (AAPL-US) edged up 0.044 percent to $135.27 a share. JPMorgan lowered its price target on Apple and said earnings might be tough due to supply headwinds.
Consumer goods giant Procter & Gamble (P&G) (PG-US) fell 2.11% to $142.42 per share. P&G’s latest financial report failed. Due to rising prices, it was difficult to offset the decline in sales and foreign exchange headwinds.
Economic data
- The number of people claiming unemployment benefits in the United States reported 190,000 last week, compared with 214,000 expected and 205,000 previously
- The number of Americans continuing to receive unemployment benefits last week was reported at 1.647 million, expected to be 1.66 million, and the previous value was 1.63 million
- The initial value of the monthly rate of building permits in the United States in December last year was -1.6%, expected to be 1.4%, and the previous value was -10.6%
- The initial value of the annualized total number of building permits in the United States in December last year was 1.33 million, expected to be 1.37 million, and the previous value to be 1.351 million
- The annualized monthly rate of new housing starts in the United States in December last year was -1.4%, expected -5.4%, and the previous value was -0.5%
- The annualized total number of new housing starts in the United States in December last year was 1.382 million, expected to be 1.359 million, and the previous value was 1.427 million
Wall Street Analysis
The number of jobless claims fell below expectations for the third consecutive week, and investment bank Jefferies said: “Data releases like this are why Fed officials reiterated their intention to raise interest rates.”
“Despite all the big tech layoffs post-pandemic, the job market is still hot. The labor market needs a breakthrough to make it easy for the Fed to keep rates on hold,” said Edward Moya, senior market analyst at Oanda.
Investors worry that the Fed’s rate hike will hit the U.S. economy hard. David Donabedian, chief investment officer at CIBC Private Wealth Management, said: “The housing market is clearly in recession, and manufacturing is teetering on the brink of recession. Consumers will be more cautious going into 2023 and, over time, expect to see employment growth. In some signs of faltering markets, the chances of a mild recession this year in the U.S. and elsewhere around the world are just over 50 percent.”
The numbers are all updated before the deadline, please refer to the actual quotation
