2024-01-16 14:47:20
Major U.S. stock indexes opened lower on Tuesday (16th) as the market bets that the Federal Reserve (Fed) may cut interest rates slower than expected. At the same time, investors are weighing mixed earnings reports from Goldman Sachs and Morgan Stanley to understand The health of capital markets and dealmaking.
before deadline,Dow Jones Industrial Averagefell more than 200 points or nearly 0.6%,Nasdaq Composite Indexfell more than 100 points or nearly 0.7%,S&P 500 Indexfell nearly 0.6%,Philadelphia SemiconductorThe index fell nearly 0.3%.
Strong earnings from major Wall Street banks provided a glimmer of hope for U.S. stocks amid a pullback in global stocks, as central bankers pushed back once morest bets of aggressive interest rate cuts. At Goldman Sachs (GS-US) and Morgan Stanley reported higher-than-expected revenue in key business areas.S&P 500 IndexFutures losses narrowed, with shares of the two banks rising more than 1% before the market opened on Tuesday.
As market expectations for sharp interest rate cuts in the United States and Europe are being tested by hawkish comments from policymakers, Francois Villeroy de Galhau, a member of the European Central Bank’s (ECB) Governing Council and President of France, said that the ECB may start to cut interest rates this year, but The exact timing still depends on the data, and it’s too early to declare victory over inflation.
On the other hand, traders are also waiting for Fed Governor Christopher Waller’s remarks later on Tuesday for clues on the timing of the Fed’s interest rate cut. Money markets estimate a two-thirds chance of the Fed cutting interest rates in March. .
Mohit Kumar, chief European economist at Jefferies International, said the central bank’s delay in cutting interest rates would not help risk assets and that the market was getting ahead of itself.
It is worth noting that the January manufacturing index released by the New York Fed on Tuesday was -43.7, far lower than the -5 expected by the market, and also lower than -14.5 in December last year, which may give the Fed reason to cut interest rates ahead of schedule. After the data is released,dollar indexGiving back earlier gains.
In other news, international oil prices rose following foreign media reported that the United States and the United Kingdom’s attacks on Yemen’s “Youth Movement” militants raised concerns regarding oil supply, and the British Shell Company indefinitely suspended oil shipments through the Red Sea. The impact of transportation news. before deadline,Brent crude oilFutures exceeded US$72 per barrel, an increase of regarding 0.2%; West Texas crude oil futures approached US$79 per barrel, an increase of regarding 0.5%.
As of 22:00 Taipei time on Tuesday (16th): Focus stocks:
Netflix(NFLX-US) shares fell 0.49% in early trading to $489.73 per share
Netflix is piloting a joint program with French retailer Carrefour to win more customers for its affordable subscription plans, modeled following Amazon (AMZN-US) adds a model for streaming clients.
Microsoft (MSFT-US) shares rose 0.49% to $390.91 per share in early trading
According to foreign media reports on Tuesday (16th), British mobile phone giant Vodafone Group has reached a cooperation agreement with Microsoft to invest US$1.5 billion in the next 10 years to develop technologies including artificial intelligence (AI), digital payment, and things. A series of businesses including Internet of Things (IoT).
Morgan Stanley (MS-US) shares fell 3.41% in early trading to $86.64 per share
Morgan Stanley, a major Wall Street bank, announced last year’s fourth-quarter financial results before the U.S. stock market opened on Tuesday. Its revenue beat Wall Street analysts’ expectations and its profit performance was also impressive, inspiring its stock price to rise by more than 1% before the market opened.
Today’s key economic data:
- The New York Fed’s January manufacturing index reported – 43.70, expected – 5.00, and the previous value – 14.50
Wall Street analysis:
Morgan Stanley analyst Michael Wilson said interest rates remain the most important determinant of stock index performance in the short term. The bank believes stocks will become more reliant on economic growth results, although interest rate volatility will likely continue to be a noteworthy driver this year.
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