U.S. bond yields continue to fall, major indexes fall | Anue Juheng-U.S. Stock Radar

Major U.S. stock indexes fell on Friday (17th), U.S. debt 10-year yieldContinuing the decline from the previous session, the market continued to fall, as the U.S. economy showed signs of growth and the market increased bets on the Federal Reserve (Fed) to cut interest rates next year.

before deadline,Dow Jones Industrial Averagefell more than 40 points or nearly 0.1%.Nasdaq Composite Indexfell more than 30 points or nearly 0.3%,S&P 500 Indexfell nearly 0.1%,Philadelphia SemiconductorThe index fell nearly 0.3%.

Weak inflation and employment data released in the United States this week have given investors more confidence that the aggressive monetary policy cycle of the Federal Reserve (Fed) and other major central banks has finally come to an end. There are also signs that raising interest rates will eventually dampen economic growth. International oil prices fell 20% from the high point in September last year, entering a bear market.

Bank of America analyst Michael Hartnett said technical and macroeconomic headwinds are building and investors should sell risk assets after recent gains. He said that while loose financial conditions (yields fell from 5% to 4%) stimulated risk appetite, a further decline to 3% would be seen as a sign of recession.

The bank also cited EPFR Global data as saying that in the week ended November 15, the central bank’s view of ending the interest rate hike cycle helped drive US$23.5 billion in capital inflows into equity funds, the second largest inflow this year.

In other news, U.S. President Joe Biden signed a stopgap bill that would extend federal financial support until early next year, temporarily averting a government shutdown but pushing the politically divided debate over the size of the federal budget into next year’s presidential election year. .

The White House confirmed the move in a statement on Friday morning local time, less than a day before existing funding expired. According to the latest statement, Biden, who is attending the Asia-Pacific Economic Cooperation (APEC) leaders’ summit in California, signed the stopgap legislation late Thursday local time.

As of 21:00 Taipei time on Friday (17th):

Focus stocks:

Gap(GPS-US) rose 22.75% to $16.78 per share in early trading

Apparel maker Gap’s stock price soared nearly 19% before the market opened on Friday, mainly due to signs that the company’s Old Navy brand is launching fashionable and popular clothing, while making only progress in controlling inventory. Two bullish news prices Holding on makes its shares popular among investors.

Applicable materials (AMAT-US) fell 5.77% in early trading to $145.87 per share

Applied Materials shares continued to fall after the bell on Friday. Earlier reports pointed out that the semiconductor equipment manufacturer was under investigation by the U.S. Department of Justice for violating export controls on China’s largest chip maker Semiconductor Manufacturing International Corporation. It is understood that Yingcai shipped hundreds of millions of dollars worth of semiconductor equipment to SMIC without obtaining an export license.

Alibaba (BABA-US) fell 1.82% in early trading to $77.67 per share

Alibaba’s e-commerce-centric business model faces weak demand and increased competition, with the market value of Alibaba’s shares falling to about half that of rival Tencent Holdings. In addition, Alibaba suffered its biggest sell-off in more than a year in yesterday’s trading day, mainly due to the company’s decision to abandon plans to spin off its US$11 billion cloud business unit and readjust its strategy amid the U.S. ban on sales of advanced chips to China. , which also wiped out $683 million of Jack Ma’s assets.

Today’s key economic data:

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Wall Street analysis:

Options linked to $2.4 trillion worth of stocks, ETFs and stock indexes are set to expire on Friday, according to data compiled by Rocky Fishman, founder of U.S. options market analysis provider Asym50. With about a third of the call options tied to IWM set to expire on Friday, some of the momentum that drove small-cap stocks sharply higher over the past two weeks could fade if traders choose not to roll over.