Signs of slowing inflation boosted market risk appetite, U.S. stocks opened higher on Friday (12th), consumer discretionary and technology stocks rose sharply, and the four major indexes closed in the red on Friday.Dow Jonesrose more than 420 points, rising for three consecutive trading days,that fingerIt rose more than 2% to a new high since April 21, and Nvidia and Micron saw bargain hunting.half feeIt rose nearly 3%.
Looking at this week,Dow JonesWeekly up 2.92%,that fingerIt rose 3.08% for the week, and the S&P rose 3.26% this week, extending its fourth consecutive weekly rise and the longest weekly gain since November 2021.
On the data front, a flurry of economic data released this week underscored signs that inflation has peaked, with the overall economy cooling off after U.S. inflation pressures have steadily climbed since early 2021. US July producer price index (PPI) rose 9.8%, lower than market expectations. The consumer price index (CPI) rose at an annual rate of 8.5% in July, also below expectations and down slightly from June.
The U.S. Labor Department reported on Friday that U.S. import prices fell 1.4% in July, a sharper-than-expected drop and the biggest drop since April 2020, mainly reflecting lower costs for fuel and non-fuel products.
In terms of politics and economy, the U.S. House of Representatives passed the $430 billion “Inflation Reduction Act” after the market close on Friday. A major victory under US President Biden will help the Democratic Party’s November midterm elections.
The U.S. Commerce Department on Friday announced enhanced export controls on advanced semiconductor and gas turbine engine technologies, including those involving gallium oxide and diamond raw materials, to ensure U.S. national security.
In terms of geopolitics, after five Chinese companies announced their delisting from the New York Stock Exchange, Chinese stocks were generally weak on Friday. The China Securities Regulatory Commission responded that listing and delisting are the norm in the capital market, and market analysts are not optimistic about the potential of the United States and China. An agreement on the audit issue has been reached, and it is expected that more Chinese companies will be delisted in the future.
The Wall Street Journal reported on Friday that Chinese officials are planning to have Chinese leader Xi Jinping hold a physical meeting with U.S. President Joe Biden when he attends a meeting of leaders of the Group of 20 or Asia-Pacific Economic Cooperation (APEC) at the end of the year.
The global epidemic of new coronary pneumonia (COVID-19) continues to spread. Before the deadline, data from Johns Hopkins University in the United States pointed out that the number of confirmed cases worldwide has exceeded 588 million, and the number of deaths has exceeded 6.43 million. More than 12.4 billion vaccine doses have been administered in 184 countries worldwide.
The performance of the four major U.S. stock indexes on Friday (12th):
- US stocksDow JonesUp 424.38 points, or 1.27%, to settle at 33,761.05.
- NasdaqThe index rose 267.27 points, or 2.09 percent, to end at 13,047.19.
- S&P 500 IndexUp 72.88 points, or 1.73 percent, to settle at 4,280.15.
- Philadelphia SemiconductorThe index rose 89.1 points, or 2.99 percent, to end at 3,067.8.
Focus stocks
The five kings of science and technology climbed simultaneously. apple (AAPL-US) rose 2.14%; Meta (META-US) rose 1.70%; Alphabet (GOOGL-US) rose 2.39 percent; Amazon (AMZN-US) rose 2.07 percent; Microsoft (MSFT-US) rose 1.70%.
Dow JonesConstituent stocks generally closed in the red, only Johnson & Johnson (JNJ-US) fell 1.1 percent. Disney (DIS-US) rose 3.3 percent; Merck (MRK-US) rose 2.35%; UnitedHealth (UNH-US) rose 2.03 percent; Walmart (WMT-US) rose 1.85%.
half feeConstituent stocks rose eye-catching. Micron (MU-US) rose 4.36%; AMD (AMD-US) rose 2.76%; NVIDIA (NVDA-US) rose 4.27 percent; Applied Materials (AMAT-US) rose 4.60%; Texas Instruments (TXN-US) rose 1.82%; Qualcomm (QCOM-US) rose 2.34%.
Taiwan stock ADR is only weaker than Chunghwa Telecom. TSMC ADR (TSM-US) rose 1.50%; ASE ADR (ASX-US) rose 3.23%; UMC ADR (UMC-US) rose 2.69%; Chunghwa Telecom ADR (CHT US) fell 0.10%.
Corporate News
apple (AAPL-US) rose 2.14% to $172.10 a share, coming close to regaining ground lost since June, but the S&P is still down 10% over the same period. Daniel Morgan, senior portfolio manager at Synovus Trust, sees Apple as a safe haven for investors when the market is uncertain.
American fitness equipment startup Peloton (PTON-US) surged 13.60% to $13.53 per share. Peloton on Friday announced a sweeping overhaul, laying off about 780 employees, closing a slew of retail stores, and raising prices on its “Peloton Bike” and treadmill “Peloton Tread” to cut costs and turn a profit.
American electric vehicle startup Rivian (RIVN-US) fell 0.13 percent to $38.90 a share. Rivian’s second-quarter revenue was better than market expectations, and it reiterated that the delivery target remained unchanged. Affected by supply chain bottlenecks, rising costs and economic volatility, Rivian expects losses to widen for the full year, thus reducing capital expenditures.
American gene sequencing (NGS) technology company Illumina (ILMN-US) fell 8.40% to $208.32 per share. Illumina reported dismal results last quarter, with both revenue and profit below analysts’ expectations, and an outlook that was well below consensus estimates.
Shanghai Petrochemical (SHI-US) fell 1.06%, Aluminum Corporation of China (ACH-US) fell 0.76%, PetroChina (PTR-US) fell 1.65%, Sinopec (SNP-US) fell 1.80% and China Life Insurance (LFC-US) fell 1.46%. The five Chinese companies collectively announced on Friday that they will start delisting from the New York Stock Exchange in the United States. The reason for the delisting is that the stock trading volume is low, and the shares will still be traded in Hong Kong after the listing.
Economic data
- The monthly growth rate of the US import price index in July was -1.4%, expected -1%, and the previous value was 0.3%
- The annual growth rate of the US import price index in July was 8.8%, the previous value was 10.7%
- The initial value of the U.S. Michigan consumer confidence index in August was 55.1, expected to be 52.5, and the previous value of 51.5
Wall Street Analysis
“The Fed’s tightening is unlikely to declare victory until inflation hits its target, but recent economic data supports the view that the Fed’s most hawkish days are over,” Bank of America strategists said.
“We don’t expect the market to make new highs this year, but with inflation easing and the Fed likely to slow the pace of rate hikes, we wouldn’t be surprised to see the market head to highs,” said Michael Darda, economist and market strategist at MKM Partners. different.”
The figures are updated before the deadline, please refer to the actual quotation.
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