US stock futures trimmed losses after Fed Chairman Jerome Powell gave no clues on the outlook for interest rates in an earlier speech, a day after two Fed officials said it may be too late to say a victory over inflation It’s too early and the market is still concerned about rising interest rates and the major US stock indexes fluctuated on Tuesday (10).
before the deadline,Dow Jones Industrial Average+0.05%,Nasdaq Composite Index+0.02%,S&P 500 indexdown 0.03%,Semiconductor PhiladelphiaThe index fell by almost 0.4%.
Powell spoke briefly about central bank independence at a forum in Stockholm, Sweden, on Tuesday. He believes the Fed needs to get rid of political clout when it comes to persistently high inflation, and stabilizing prices requires making tough decisions that are politically unpopular because the Fed slows the economy by raising interest rates to drive the inflation down.
Traders had hoped for a quick end to the Fed’s aggressive interest rate hikes as global inflation eased, but their hopes were dashed on Monday. Federal Reserve Bank of San Francisco President Mary Daly expects the Fed to raise interest rates above 5%; Atlanta Federal Reserve Bank President Raphael Bostic also said that interest rates should be raised to 5% by the beginning of the second quarter of this year above, and then remain unchanged for a long time.
Meanwhile, JPMorgan Chase & Co. Chief Executive Jamie Dimon said in an interview on Tuesday that the Federal Reserve (Fed) may need to raise interest rates above the currently expected 5% level, but favors a pause in rate hikes to see the impact of last year’s tightening Full impact.
In Europe, economists at Goldman Sachs say they are no longer making predictionsEURThe region is headed for a recession as the European economy proved more resilient last year, while gas prices fell sharply and China ended its strict coronavirus lockdown earlier than expected.
Wall Street giant JPMorgan Chase (JPM-USA), Bank of America (BAC-US), Citigroup (C-USA) and Wells Fargo (WFC-USA) will announce last year’s fourth-quarter results this week, and institutions expect their profits to decline.
According to Refinitiv data, including Morgan Stanley (MS-USA) and Goldman Sachs (GS-USA), the six largest banks are expected to build reserves totaling US$5.7 billion to service bad loans, more than double the US$2.37 billion in the same period last year, while net profits will decrease by an average of 17% year over year. In addition, global investment banking revenues fell to $15.3 billion in the fourth quarter of last year, a more than 50% decline from the same period a year earlier, according to Dealogic data.
From 22:00 on Tuesday (10) Taipei time:
Focus on actions:
Tesla (ATS-US) fell 0.45% to $119.17 a share in early trading
After Tesla China announced price cuts, it received orders for 30,000 electric vehicles within three days. Tesla lowered the price again, which led some new automakers in China to face a severe test, especially those with lower prices. similar and low sales. and even depots urgently launched sales speech training. In addition, the order page of Tesla China’s official website also shows that the expected delivery cycle of the long-range version of the rear-wheel drive Model Y has been extended to 2-5 weeks, originally 1-4 weeks, showing signs of recovery sale.
Microsoft (MSFT-USA) rose 1.23% to $229.91 a share in early trading
According to Semafor, Microsoft is in talks to invest up to $10 billion in AI company OpenAI, creator of the AI chatbot ChatGPT. The funding also includes other venture capital firms, the people said. Including the new investment, OpenAI will be valued at $29 billion.
It’s unclear whether the deal has been negotiated, but documents sent to prospective investors in recent weeks show the deal aims to close by the end of 2022.
boeing (BA-USA) fell 1.62% in early trading to $205.21 per share
Shares of US aerospace giant Boeing fell more than 2% in premarket trading after Morgan Stanley downgraded the stock to ‘equal weight’ from ‘overweight’, citing the stock trading at current levels. “We see a balance between risk and reward as most of the short- to medium-term bullish factors have materialized,” Morgan Stanley said in a statement.
Today’s key economic data:
- The monthly rate of wholesale inventories in the United States in November last year was supposed to be 1%, and the previous value was 1%
- The monthly rate of wholesale sales in the United States in November last year is expected to be 0.4%, the previous value is 0.5%
Wall Street Analysis:
Hopes of a soft landing for the US economy are growing and could be dashed if the Fed remains aggressive on interest rates, said Russ Mould, chief investment officer at AJ Bell.
Susannah Streeter, senior investment and market analyst at Hargreaves Lansdown, said investors are watching closely any economic data that shows inflation is cooling down, hoping Fed officials’ hawkish stance will soften, but recent speeches of various officials still show the eagle claws The expansion work is far from finished.
