The slowdown in inflation data may still not be enough to prevent the Federal Reserve from raising interest rates again this year, with minutes showing that officials expect the banking crisis to lead to a recession this year.U.S. stocks fell sharply in late trading on Wednesday (12th),Dow JonesTurning black closed down nearly 40 points, ending four consecutive trading days of gains, the S & P index fell by more than 0.4%, falling below the 4100 point mark,That fingerdown 0.85%,fee halfIt tumbled more than 1.8 percent.
In terms of data, the U.S. Department of Labor released data on Wednesday showing that the annual growth rate of the consumer price index (CPI) fell to 5% in March, lower than market expectations and the lowest since May 2021; core CPI excluding food and energy costs The annual increase was 5.6%, in line with market expectations, but slightly higher than the previous value of 5.5%, the first rebound since last September.
In terms of politics and economy, the minutes of the Federal Reserve’s March meeting showed that officials agreed that inflation was still too high and that the banking crisis increased economic uncertainty. Nevertheless, all officials involved in decision-making supported a March rate hike1 code is appropriate. Given the potential economic impact of recent banking developments, officials forecast a mild recession starting later this year, and several lowered their forecasts for terminal interest rates.
Richmond Federal Reserve Bank President Barkin (Thomas Barkin) issued a hawkish signal on Wednesday, saying that the latest inflation data is not weak enough, and the Fed still has more work to do to curb inflation back to its 2% target Do.
Looking ahead, there are good reasons to think that policy may have to be tightened further to bring down inflation, but there are also good reasons to think the economy may continue to slow even without additional policy, San Francisco Federal Reserve Bank President Mary Daly said on Wednesday. Adjustment. When credit conditions tighten, it puts the brakes on the economy so the Fed doesn’t have to raise rates further.
Gita Gopinath, first vice president of the International Monetary Fund (IMF), warned on Wednesday that although the U.S. economic data is good, the labor market and consumption are unexpectedly strong, but there are also data reflecting that the economy has begun to weaken, and there is a possibility of entering low growth or even contraction. The economy could still fall into a hard landing.
White House chief economic adviser Branard pointed out on Wednesday that the financial pressure caused by the collapse of two U.S. banks last month seems to be fading, the banking industry is improving its balance sheet, and the outflow of savings has also stabilized, supporting the need for banking supervision. Further strengthening, including stress testing of banking system liquidity risk.
In an interview on Wednesday, Warren Buffett said that in the future, we may see more crises in American banks. Bank stocks in trouble are not value investments, but he is confident that the government will take action to protect depositors, and depositors will not lose a dime. money.
The performance of the four major US stock indexes on Wednesday (12th):
Focus stocks
The five kings of technology were mixed. Amazon (AMZN-US) down 2.09%; Meta (META-US) up 0.070%; Apple (AAPL-US) fell 0.44%; Alphabet (GOOGL-US) down 0.85%; Microsoft (MSFT-US) rose 0.23%.
Dow JonesMore than half of constituent stocks were weak. Disney (DIS-US) down 2.47%; Walgreens Boots (WBA-US) fell 1.71%; American Express (AXP-US) down 1.57%; Merck (MRK-US) rose 1.12%; Dow Chemical (DOW-US) rose 1.25%.
fee halfConstituent stocks were bloodied. Micron (MU-US) fell 2.53%; Huida (NVDA-US) down 2.48%; AMD (AMD-US) down 1.81%; Applied Materials (AMAT-US) fell 2.77%; Texas Instruments (TXN-US) down 1.29%; Qualcomm (QCOM-US) down 2.67%.
Among the ADRs of Taiwan stocks, only Chunghwa Telecom bucked the trend and closed in red. TSMC ADR (TSM-US) fell 2.66%; ASE ADR (ASX-US) fell 1.44%; UMC ADR (UMC-US) down 0.95%; Chunghwa Telecom ADR (CHT US) up 0.72%.
Corporate News
Cirrus Logic (CRUS-US) plummeted 12.32% to $89.28 per share. apple (AAPL-US) slipped 0.44% to $160.10 per share.
Both Haitong International Securities analyst Jeff Pu and Tianfeng International Guo Mingchi revealed that the iPhone 15 Pro series will eventually cancel the solid-state volume button design that the market has paid close attention to because the design of the new solution (solid-state button) is too complicated. Such a decision would put at risk the profits of Apple supplier Cirrus Logic, which generates 88% of its revenue from Apple.
Tesla (TSLA-US) fell 3.35 percent to $180.54 a share. Tesla Hong Kong said that through the “one-for-one” program, the price of Model 3 and Model Y will be reduced by up to 14% from this Saturday.
Broadcom (AVGO-US) closed up 0.78 percent at $616.70 a share. The European Commission has rejected a request by chip maker Broadcom to acquire cloud computing company VMware, saying the deal could harm market competition. Broadcom responded that the company is confident that the merger will not harm market competition, and the transaction is expected to be completed in fiscal 2023.
Alibaba ADR (BABA-US) tumbled 5.93% to $93.84 per share, before falling nearly 2% after the session. The Financial Times reported on Wednesday, citing regulatory filings it analyzed, that SoftBank Group had begun selling almost all of its remaining stake in Alibaba.
Economic data
- U.S. March CPI annual growth rate reported 5.0%, expected 5.2%, previous value 6.0%
- U.S. March CPI monthly growth rate reported 0.1%, expected 0.2%, previous value 0.4%
- U.S. core CPI annual growth rate in March reported 5.6%, expected 5.6%, previous value 5.5%
- The monthly growth rate of the core CPI in the United States in March was reported at 0.4%, expected 0.4%, and the previous value was 0.5%
- The monthly growth rate of real personal income in the United States in March was -0.1%, expected -0.2%, and the previous value was -0.4%
Wall Street Analysis
Richard Flynn, managing director of Charles Schwab, judged: “Investors may expect the Fed to stop the tightening cycle soon. 2% target set.”
CFRA analyst Sam Stovall said: “The CPI data was encouraging because it showed that inflation was moving in the direction the Fed wanted, but it wasn’t enough to stop the Fed from raising interest rates, which is expected to end in May. Another one-yard rate hike at the May meeting, but certainly the possibility of no rate hikes after the May meeting is looming.”
“The minutes made it clear that the Fed remains concerned about the banking crisis and inflation,” said Greg Bassuk, chief executive of AXS Investments.
The numbers are all updated before the deadline, please refer to the actual quotation
