Investors worry regarding hawkish signals from Federal Reserve policymakers amid slowing economic growth, with tech-led gainsNasdaqThe index led the decline, and the major U.S. stock indexes opened lower on Monday (22nd).
Before the deadline,Dow Jones Industrial Averagedown nearly 400 points or nearly 1.2%,Nasdaq Composite Indexdown nearly 200 points or nearly 1.5%,S&P 500 Indexfell nearly 1.4%,Philadelphia SemiconductorThe index fell nearly 2 percent.
Before US stocks openS&P 500 IndexandNasdaq 100 index futures all fell more than 1%.U.S. 10-year Treasury yieldAlmost flat, the 2-year yield rose regarding 4 basis points, adding to the trend of an inversion of the yield curve, seen as a harbinger of a recession.US dollar indexIt climbed to a 5-week high and is now at 108.305.
Global stocks rebounded from June’s bear market lows on expectations that rate hikes would turn to a slowdown, but that rally is fading following Federal Reserve policymakers repeatedly warned rates would be higher.
The focus this week is Friday’s annual meeting of global central banks in Jackson Hole, where Fed Chairman Jerome Powell is expected to focus on fighting inflation.
In addition, investors are beginning to realize that the Fed is accelerating the reduction of its balance sheet, and the so-called quantitative contraction (QT) will reach its climax next month, which will increase the pressure on high-risk assets that benefit from liquidity.
While inflation may have peaked, stocks and bonds are set to fall once more, according to the latest MLIV Pulse survey, with some 68% of respondents believing that the most volatile price pressure in decades will erode corporate profit margins and affect stocks go down.
Meanwhile, European gas prices have soared on fears that Russian gas supplies will be disrupted for a prolonged period, jeopardizing an already struggling economy.
On the other hand, the prospect of Chinese demand has put pressure on international oil prices. Before the deadline, West Texas crude oil futures andBrent CrudeFutures fell more than 0.4%, with West Texas crude falling below $90 a barrel at one point before the decline narrowed. Traders are closely watching Iran nuclear talks, which might lead to more supplies.
As of 21:00 on Monday (22nd) Taipei time:
Stocks in focus:
Signify Health(SGFY-US) rose 39.01% to $29.47 a share in early trade
According to people familiar with the matter, Amazon (AMZN-US) in the bid for Signify Health, a healthcare company, and several other companies, CVS (CVS-US)、UnitedHealth(UNH-US) and wait for buyers to tell each other signs. It is reported that Signify will be sold through an auction, and its valuation may be well over $ 8 billion. Auction bids are due around Labor Day, the first Monday in September, but it’s possible an eager bidder can get a deal before then, people familiar with the matter said.
There’s no guarantee that any of these companies will land a deal with Signify, which has a market value of regarding $5 billion. An Amazon deal would be its latest foray into health care, the second time the company has faced off once morest CVS in recent months.
Occidental Petroleum (OXY-US) fell 3.98% to $68.45 a share in early trade
Last week, foreign media reported that Buffett’s Berkshire Hathaway (BRK.B-US) received permission from U.S. regulators to buy up to 50% of Occidental Petroleum’s stock. Berkshire is currently the largest shareholder of Occidental Petroleum. Occidental rose 9.88% in the previous trading day to close at $71.29 per share. However, Occidental oil shares retreated in pre-market trading on Monday, down nearly 2%.
Tesla (TSLA-US) fell 2.75% to $865.56 a share in early trade
Electric car leader Tesla CEO Elon Musk announced on Twitter on Sunday (21st) that the price of Tesla’s Fully Automatic Driving System (FSD) in North America will increase by 25% to $15,000. Musk said the price increase will take effect on September 5. The current price applies to orders placed before September 5th for later delivery. This is also Tesla’s second price hike this year.
Today’s key economic data:
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Wall Street Analysis:
Craig Erlam, senior market analyst at Oanda, said the market still expects Fed Chairman Powell to reiterate recent public remarks made by himself and other officials. The risk is that Powell might be dovish, intentionally or not, following investors held opposing positions in stocks, triggering another risky rally in the market.
Central banks, including Powell, are likely to remain hawkish on inflation, albeit with a bit of caution given the recession, said the head of investment strategy at AMP Services.
