The U.S. Congress started hearings on bank failures. Bank reform is on the way. U.S. stocks opened mixed on Tuesday (27th), financial stocks were sluggish, and the 2-year U.S. bond yield remained stable above 4%, prompting technology stocks to continue Monday. The decline, the four major indexes closed in ink.
Dow Jones IndexIt closed nearly 40 points lower, and its rise was blocked for three consecutive trading days. The S&P 500 index fell 0.16%, and it still stopped outside the 4000-point barrier.Philadelphia SemiconductorThe index closed down more than 0.8%.Nasdaq Composite IndexIt was down 0.45%. Alibaba ADR shares soared more than 14%.
In terms of data, the U.S. consumer confidence index in March was 104.2, market expectations were 101, and the previous value was revised to 103.4. Although the survey covered the week after the collapse of Silicon Valley Bank, consumer confidence remained good, reflecting the continued strength of the labor market , and slightly optimistic about the economic future.
In terms of political and economic news, the U.S. Senate and House of Representatives held the first hearing on the collapse of Silicon Valley Bank (SVB) and Signature Bank. The three major financial regulators revealed the blueprint for the next reform. Among them, Barr, vice chairman of the Federal Reserve for Financial Supervision, said, The collapse of Silicon Valley Bank demonstrated the need to strengthen the resilience of the banking system and the need for stricter capital and liquidity standards for banks with assets exceeding $100 billion.
St. Louis Federal Reserve Bank President Bullard (James Bullard) wrote on Tuesday that the Fed’s interest rate tools are aimed at inflation, not to solve bank pressure.
According to CME’s FedWatch tool, traders predict that the possibility of the Federal Reserve raising interest rates by one yard at the next meeting and then turning loose is more than 50%. However, Wall Street analysts such as BlackRock believe that the chance of the Federal Reserve cutting interest rates this year is unlikely , the market misjudged the Fed’s bet on rate cuts.
In addition to news about the banking crisis and the Federal Reserve, investors are also concerned about the debt ceiling.
House Speaker Kevin McCarthy sent an unsolicited letter to U.S. President Joe Biden on Tuesday asking for talks on raising the debt ceiling, outlining the Republicans’ desire for spending cuts, regulatory reform and recovering unspent COVID-19 funding, among other demands. The market believes that the initiative of the opposition Republicans to initiate negotiations is expected to bring benefits.
As the U.S.-China tech war escalates, Chinese Commerce Minister Wang Wentao tried on Tuesday to reassure the head of ASML that Beijing remains a reliable partner even as the Dutch government imposes new restrictions on the export of advanced semiconductor technology. Call on both parties to jointly maintain the supply of the global semiconductor industry chain.
The performance of the four major U.S. stock indexes on Tuesday (28th):
Focus stocks
The five kings of science and technology are mourning everywhere. Amazon (AMZN-US) down 0.82%; Meta (META-US) down 1.06%; Apple (AAPL-US) down 0.40%; Alphabet (GOOGL-US) down 1.40%; Microsoft (MSFT-US) down 0.42%.
Dow JonesComponent stocks were mixed. Walgreens Boots (WBA-US) rose 2.67%; Boeing (BA-US) rose 2.19%; UnitedHealth (UNH-US) fell 1.93%; American Express (AXP-US) fell 2.4%; Merck (MRK-US) fell 1.31%.
fee halfConstituent stocks generally received black. NVIDIA (NVDA-US) down 0.46%; AMD (AMD-US) down 2.12%; Applied Materials (AMAT-US) fell 2.08%; Texas Instruments (TXN-US) up 0.25%; Qualcomm (QCOM-US) down 1.83%; Micron (MU-US) down 0.85%.
Taiwan’s ADR is only weaker than UMC. TSMC ADR (TSM-US) up 0.17%; ASE ADR (ASX-US) up 0.66%; UMC ADR (UMC-US) down 0.69%; Chunghwa Telecom ADR (CHT US) up 0.38%.
Corporate News
The sudden return of Jack Ma, the former richest man in China, caused market turmoil. People from all walks of life have speculated that the listing of Ant Group and related companies, which has been delayed for many years, has dawned.
Zhang Yong, chairman and CEO of Alibaba Group, announced on Tuesday that its business will be split into six major groups, and independent financing and listing plans will be carried out as appropriate to promote Alibaba’s ADR (BABA-US) soared 14.26% to $98.40 a share, its best day since June 2022.
Apple BNPL (Buy Now Pay Later) service officially launched, Affirm (AFRM-US) will face increased pressure from rivals, with its shares plummeting 7.34% on Tuesday.
Apple announced at the Worldwide Developers Conference (WWDC) last year that it will launch a buy now, pay later service (Apple Pay Later). , with no interest or other additional fees.
Micron (MU-US) fell 0.85% to US$59.28 per share. Micron released its second-quarter earnings after the close on Tuesday, which was worse than expected, but executives revealed that the memory market may bottom out, and its stock price rose more than 1.6% after the market.
microsoft (MSFT-US) fell 0.42% to $275.23 per share. The engineering department of GitHub, a subsidiary of Microsoft, was wiped out. As part of the cost-cutting response to the weak global economy, GitHub had previously carried out a wave of layoffs, but the wave of layoffs has not stopped. GitHub confirmed that it has launched a new layoff plan, laying off 100 employees in India. Multiple employees, in effect, cut all of GitHub’s Indian engineering team.
Economic data
- The initial monthly rate of U.S. wholesale inventories in February was reported at 0.2%, expected to be 0.2%, and the previous value to be -0.4%
- The FHFA house price index in the United States reported a monthly rate of 0.2% in January, expected – 0.2%, and the previous value – 0.1%
- The FHFA house price index in the United States reported an annual rate of 5.3% in January, and the previous value was 6.7%
- U.S. Economic Council Consumer Confidence Index in March reported 104.2, expected 101.0, previous value 102.9
- Richmond Fed Manufacturing Index at -5, expected -10, previous -16
Wall Street Analysis
“Treasury yields rose for a second straight day, led by more economically sensitive sectors such as energy and industrials,” said Brian Levitt, global market strategist at Invesco.
Paul Hickey, co-founder of Bespoke Investment Group, said: “Investors seem to be unable to make up their minds, thinking about where the US stock market should go in the future, how the banking crisis will develop, and whether the Fed’s next move will be to raise interest rates, pause or cut interest rates.”
The numbers are all updated before the deadline, please refer to the actual quotation
