The major U.S. stock indexes opened slightly higher on Wednesday (8th), mainly driven by the boost of large-cap growth stocks. Traders paid attention to the remarks of Federal Reserve (Fed) officials, including Chairman Jerome Powell, to observe whether the Fed will continue to suppress the dovishness of the market. Argument.
before deadline,Dow Jones Industrial Averagerose nearly 70 points or 0.2%,Nasdaq Composite Indexrose nearly 20 points or nearly 0.1%,S&P 500 IndexUp nearly 0.2%,Philadelphia SemiconductorThe index rose nearly 0.4%.
Global stocks struggled to make headway as many central bankers pushed back against the prospect of rapid interest rate cuts, with major index futures little changed ahead of Wednesday’s open in the U.S. 10-Year Treasury Bond YieldHolding steady at around 4.45%. International oil prices extended losses, with West Texas crude futures falling to $76, while the US dollar strengthened for the third consecutive day.
Traders have been trying to gauge how far central bankers will go to stem a recent decline in government bond yields, which could hamper efforts to rein in inflation.Bank of England Governor Andrew Bailey warned on Wednesday that it was too early to discuss interest rate cuts, while threeEURDistrict interest rate policymakers also signaled they would maintain tightening policy.
Meanwhile, Fed Governor Lisa Cook said geopolitical tensions could trigger negative spillovers, including higher inflation. Next will be speeches by Fed Chairman Jerome Powell and New York Fed President Williams, who are expected to downplay the possibility of policy easing.
As of 21:00 Taipei time on Wednesday (8th): Focus stocks:
Biogen (BIIB-US) fell 3.27% in early trading to $237.57 per share
U.S. pharmaceutical company Biogen announced its financial results for the third quarter of fiscal year 2023 before the U.S. stock market opens on Wednesday. Although its revenue and profits for the quarter were higher than Wall Street analysts expected, due to the recent acquisition of rare disease drug manufacturer Reata Pharmaceuticals and the launch of Alzheimer’s disease treatment drug Leqembi has led to higher costs and lowered its full-year profit forecast.
Amazon (AMZN-US) fell 0.19% in early trading to $142.44 per share
Reuters reported on Wednesday, citing people familiar with the matter, that Amazon has invested millions of dollars in training an ambitious large language model (LLM) “Olympus”, hoping that it can rival OpenAI and Alphabet (GOOGL-US)’s top artificial intelligence (AI) models. It is reported that Olympus’s model has 2 trillion parameters and may be the largest language model currently being trained by Amazon. In comparison, GPT-4, the best existing large-scale language model, has about 1 trillion parameters.
Under Armour(UA-US) rose 4.48% to $7 per share in early trading
Under Armor on Wednesday raised its full-year gross margin forecast as the sportswear maker benefited from easing cost pressures and kept a tight rein on spending while dealing with tepid demand in its biggest North American market. The company’s shares are down about 29% this year, but rose 2% in pre-market trading on Wednesday as last quarter’s profit exceeded analysts’ expectations.
Today’s key economic data:
none
Wall Street analysis:
Todd Schubert, senior fixed income strategist at Bank of Singapore, said: “The Fed spokesperson will try to put pressure on market expectations of interest rate cuts and cool the market. The market has underestimated the Fed’s determination to reduce inflation to 2% until there is clearer evidence. This suggests that we would not expect a sustained rally in risk assets until inflation cools significantly.”
HSBC strategists said that if the Fed does implement a shift in monetary policy and allows the economy to avoid recession, global stocks could post double-digit gains in 2024.
2023-11-08 14:44:52
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