US inflation data for October fell more than the market expected, easing pressure on the Federal Reserve (Fed) to tighten monetary policy, and the market was also harboring hope that inflation would peak.Dow Joneshas risen by over 800 points.
Before the deadline,Industrial average of the Dow Jonesincreased by more than 800 points or almost 2.5%,Nasdaq Composite Indexincreased by more than 500 points or nearly 5.2%,S&P 500 Indexincreased by almost 4%,Semiconductor of PhiladelphiaThe index was up nearly 5.6%.
On Thursday (10th) the US announced that the annual growth rate of the consumer price index (CPI) in October was 7.7%, lower than the market expectation of 8% and falling sharply compared to the previous value of 8.2%; Core CPI for September, which excludes food and energy costs The annual increase was 6.3%, lower than market expectations of 6.5% and the previous value of 6.6%. dropped, which could allow the Fed to slow the pace of rate hikes in December.
On a monthly basis, the September CPI was 0.4%, the same as before, but lower than the market expectation of 0.6%; the core CPI for September was brought back to 0.3%, lower than the market expectation of 0.5%. and the previous value of 0.6%, the overall data revealed that inflation began to cool after the Fed drastically hiked interest rates.
In the US mid-term elections, so far in the 435-seat elections in the House of Representatives, Republicans have won 207 seats, 218 seats close to the threshold, and Democrats have won 184 seats; the Republicans won 48 seats in the Senate, even approaching the threshold of 51 seats, while the Democrats won 46 seats. It is worth noting that Georgia is determined to hold a ballot on December 6 and that the state seat will likely be a key seat in determining who can control the Senate between the Democratic and Republican parties.
Neel Kashkari, chairman of the Minneapolis Fed, the newly promoted “King of the Eagle”, said politicians are trying to achieve a soft landing of the US economy, but they will not stop the decline in high inflation and will work to reduce the inflation.
In terms of digital assets, thoughcryptocurrencyThe sell-off has eased, but sentiment remains weak as FTX.com faces the possibility of bankruptcy if FTX’s $ 8 billion funding gap is delayed in obtaining aid.
Starting at 10:00 PM Thursday (10th) Taipei time:
Featured titles:
NIO (NIO-US) rose 11.24% to $ 10.29 per share at the start of the trade
Although NIO lost more than expected in the last quarter, the number of vehicles delivered in the fourth quarter is expected to almost double from the same period last year. According to the financial report, NIO’s revenue in the third quarter (as of September 30) increased 32.6% year-on-year to 13 billion yuan, a better-than-market figure of 129.91 yuan. year on year for 10 consecutive quarters, with a quarterly increase of 26.3%.
Looking ahead, NIO expects fourth-quarter deliveries of 43,000 to 48,000 vehicles, an increase of approximately 71.8% to 91.7% over the same period last year and lower than market expectations of 55,600 vehicles.
Riviano (RIVN-USA) rose 12.52% to $ 31.58 per share at the start of the trade
Electric pickup startup Rivian posted weak revenue last quarter and revised its full-year capital spending plan downward, but nonetheless reiterated its full-year production target. Rivian posted third-quarter revenue of $ 536 million, missing the Refinitiv consensus estimate of $ 551.6 million, but an adjusted loss of $ 1.57 per share, beating expectations of $ 1.82.
AstraZeneca (AZN-USA) rose 6.92% to $ 65.28 per share at the start of the trade
New crown vaccine maker AstraZeneca (AstraZeneca, AZ) benefited from strong anticancer drug sales, with third-quarter revenue of $ 10.98 billion and earnings per share of $ 1.67, both beating estimates. market share of $ 10.78 billion and $ 1.67 per share. In addition, the company also raised its profit forecast for the full year.
The main economic data today:
- The US October CPI annual growth rate was reset to 7.7%, expected to be 8.0%, the previous value of 8.2%
- US October CPI monthly growth rate reported 0.4%, expected 0.6%, the previous value of 0.4%
- US core CPI in October posted an annual growth rate of 6.3%, expected to be 6.5% and the previous value of 6.6%
- US core CPI in October posted a monthly growth rate of 0.3%, expected to be 0.5% and previous value of 0.6%
- The number of Americans who received unemployment benefits last week reported 225,000, expected 220,000, and the previous value of 218,000
- The number of people who received unemployment benefits in the United States last week reported 1.493 million, forecast 1.475 million and the previous value of 1.487 million
Wall Street Analysis:
Mizuho’s interest rate strategist said the current debate in the market is whether the Fed will continue to implement rate hikes ahead of schedule or adopt a “slow, high, long” rate hike strategy. Both the market and Mizuho rate strategists are in favor of the latter, which means that the pace of rate hikes will slow down, the final rate will increase, and the rate hike cycle will be longer.
But the latest rebound in market rates shows that at current levels, the market increasingly sees risk as a two-way street, Mizuho strategists said.
The time has come to re-enter the market, said JPMorgan’s chief global strategist. JPMorgan strategists believe US equities will have a long-term gain of 8% because prices have fallen so much and current bond prices are attractive and recommend a broad allocation of assets to fixed income products.
The strategist also believes that the US CPI has peaked and that inflation is expected to gradually decline early next year, although consumers may be unhappy given the political divide in the US.
