The U.S. Federal Reserve (Fed) kept interest rates unchanged on Wednesday (1st). Although it pointed out that the economy was strong and did not rule out further interest rate hikes in the future, Chairman Jerome Powell’s post-meeting speech still boosted the market, believing that Perhaps the Fed has completed raising interest rates, the three major U.S. stock indexes collectively closed higher, and U.S. bond yields fell.
Dow JonesIt closed up more than 221 points, and technology stocks rose sharply, driving the S&P 500 andthat fingerUp 1.05% and 1.6%. Semiconductor stocks performed strongly,half feeIt closed up more than 2% at the end, with Super Micro (AMD-US) surged 9.7%, Micron (MU-US) and Huida (NVDA-US) rose 3.8% and 3% respectively.
After the two-day meeting, the Fed announced that it would keep interest rates unchanged at the target range of 5.25%-5.50%, as expected by the market. The latest statement also changed its description of economic growth in the third quarter from “sound expansion” in September to “strong expansion,” reflecting better economic data since September.
While the central bank is less confident that financial conditions will tighten enough to bring inflation back to where it wants, Ball said policymakers will proceed with caution.
The Fed also suggested that rising long-term bond yields have reduced the incentive to raise interest rates again. Market views believe that a sharp rise in long-term yields will actually help the Fed complete its tightening policy and bring inflation back to its 2% target.
The major U.S. stock indexes fluctuated greatly when the press conference began, and began to regain their losses after about 20 minutes.
Earlier in the session, the U.S. Treasury Department announced that next week’s quarterly refinancing operation bond issuance will be US$112 billion. Although it is an increase of US$9 billion from the previous quarter, it is lower than market expectations. The news stimulated a sharp rise in US bond prices.10-year U.S. Treasury yieldIt fell back to more than two-week lows.
Investors also digested other economic data released earlier. The United States announced that ADP added 113,000 new jobs in October, which was higher than September’s performance but lower than market expectations. The ISM manufacturing index in the United States fell to 46.7 in October, shrinking more than expected.
Wall Street has just had a miserable October, partly related to investors’ concerns about rapidly rising yields.Dow JonesandS&P 500 Index In October, they fell 1.4% and 2.2% respectively, marking the first time since March 2020 that the two major indexes had three consecutive monthly declines. It is worth noting thatS&P 500 IndexBriefly fell into the correction range,Nasdaq Composite Index It fell 2.8% in October, the third consecutive month of decline.
Performance of the four major U.S. stock indexes on Wednesday (1st): The S&P 500 index was led by technology and communications stocks. (Photo: Finviz) Focus Stocks
The five kings of science and technology are rising together. apple (AAPL-US) up 1.87%; Meta Platforms(META-US) rose 3.51%; Alphabet (GOOGL-US) rose 1.91%; Amazon (AMZN-US) rose 2.94%; Microsoft (MSFT-US) rose 2.35%.
Dow JonesComponent stocks mostly ended higher. Kaifeng Heavy Industry (CAT-US) rose 2.56%; Microsoft (MSFT-US) rose 2.35%; Intel (INTC-US) rose 2.16%; Amgen (AMGN-US) rose 2.01%; Salesforce(CRM-US) rose 1.53%; Nike (OF THE US)跌 1.84%；Walgreens Boots Alliance(WBA-US) fell 2.13%.
half feeComponent stocks were led by Advanced Micro Devices. Super Micro (AMD-US) rose 9.69%; Huida (NVDA-US) rose 3.79%; Micron (MU-US) rose 3.78%; ON Semiconductor (ON-US) rose 3.51%; Intel (INTC-US) rose 2.16%; Qualcomm (QCOM-US) up 1.74%; Wolfspeed(WOLF-US) fell 2.07%.
Taiwan stock ADRs closed in the red simultaneously. TSMC ADR(TSM-US) rose 1.73%; ASE ADR(ASX-US) rose 2.28%; UMC ADR(UMC-US) rose 2.25%; Chunghwa Telecom ADR(CHT-US) rose 0.59%.
Corporate News
Qualcomm (QCOM-US) closed up 1.74% and rose more than 3.6% after hours. Qualcomm reported a decline in revenue and profits last quarter, but its outlook for this quarter is optimistic, with both revenue and EPS forecasts better than market expectations. CEO Cristiano Amon pointed out that there are signs that the Android smartphone market is stabilizing, and the period of excess chip inventory for smartphone manufacturers is basically over.
Year(ROKU-US) closed up 0.22% and soared 16% after the market. Streaming audio and video platform Roku announced last quarter’s financial report and financial forecast. The number of active users also exceeded market expectations, reaching 75.8 million. More original content has attracted more subscribers and advertisers, and the advertising market has grown steadily. It also helps the company’s business.
Airbnb(ABNB-US) closed up 1% and fell 2.7% after hours. The travel and accommodation platform’s financial results for the last quarter were better than expected, but its outlook for this quarter is disappointing. The reason is that the economic environment is more volatile and travel demand may slow down due to the impact of the economic environment and geopolitical conflicts.
PayPal(PYPL-US) rose 3.5% in after-hours trading. PayPal reported third-quarter results that beat expectations and raised its full-year profit outlook. The company said that amid a mild inflationary environment, consumer confidence remains strong, driving the accelerated growth of platform payments in the third quarter.
Economic data: U.S. ADP added 113,000 jobs in October, compared with 130,000 expected, and the previous value was 89,000. The U.S. S&P Manufacturing PMI in October reported 50, compared with 50 expected, and the previous value was 50. U.S. JOLTs job vacancies in September reported 9.6 million, Expected 9.4 million, the previous value was 9.5 million. The U.S. ISM manufacturing index in October was 46.7, expected 49.2, the previous value was 49. U.S. construction spending in September increased by 0.4% month-on-month, expected 0.4%, the previous value was 1%. Wall Street Analysis
Damanick Dantes, portfolio strategist at Global
Callie Cox of eToro said the Fed did not raise interest rates today mainly because the bond market raised rates for them. “This should give investors some relief. The Fed is looking at the big picture and they know that blindly raising rates amid severe tightening could push the economy to the brink of collapse.”
“The Fed is trying to maintain a hawkish stance, but Wall Street doesn’t think there will be further tightening this cycle,” said Edward Moya, senior market analyst for the Americas at Oanda.
Michael James, managing director of the equity trading department at Wedbush Securities, believes: “While Ball said there is still a long way to go to achieve the 2% inflation target, his speech was not as confident as in the past about higher interest rates in the long term. This will be One of the focuses of attention from many parties.”
The figures are all updated before the deadline, please refer to the actual quotation.
2023-11-01 21:26:36
#U.S #Stocks #Hours #Fed #stayed #hold #major #indexes #rebounding #leading #gains #Anue #Juheng #U.S #stocks
