Federal Reserve officials once again “released the eagles”, tensions in the Taiwan Strait continued to rise, HP and Seagate financial downturns were expected to trigger selling pressure on tech stocks , major US equity indices fluctuated in a tight range after opening as high as Wednesday (31st) and selling pressure intensified in late trading, the four major indices closed in the black, continuing the decline for the fourth trading day.
The leading US equity index also recorded its worst August performance in seven years, with the S&P down 4.2% in August.Dow Jonesfell 4.1% on a monthly basis,that fingerIt fell by 4.6%.
In terms of data, a new version of small non-farm payrolls that takes into account wage data debuted Wednesday. 300,000, compared to 268,000 in July. down. Analysts believe the US may find itself at a tipping point from overloaded employment growth to normalized levels.
In terms of politics and economics, the Federal Reserve raised interest rates four times this year, a total increase of 2.25%. Markets expect the Fed to raise interest rates for the third consecutive time by 0.75% at its September meeting, with cuts expected to begin in the fall of 2023.
However, voting member of this year’s Federal Open Market Committee (FOMC) Loretta Mester, chairman of the Federal Reserve Bank of Cleveland, said on Wednesday that the Fed must raise interest rates over 4% by early next year. year and keep them there. period of high tide, the Fed is not expected to cut rates until at least the end of 2023.
In terms of geopolitics, after US House Speaker Nancy Pelosi visited Taiwan, the situation in the Taiwan Strait was tense and US-China relations took a sharp turn for the worse. stated Wednesday that the two sides continue to actively organize related work on the date and place.
Chinese authorities on many occasions send drones to infest Kinmen, Lianjiang and other outlying islands. The Taiwanese military sent signal bombs to warn them and carried out defensive shootings to drive them away.
The US Senate and House of Representatives will begin deliberating on the “Taiwan Policy Act of 2022” in September, covering the full strengthening of Taiwan-US relations, strengthening security and economic and trade relations between Taiwan and the United States and support for Taiwan’s international participation and countermeasures on important issues such as coercion from China, the Taiwanese government is in close contact with the US Senate Foreign Relations Committee and continues to pay attention to the development of the bill .
The global epidemic of novel coronary pneumonia (COVID-19) continues to spread. Before the deadline, data from Johns Hopkins University in the United States showed that the number of confirmed cases worldwide exceeded 601 million and the number of deaths exceeded 6.48 million. More than 12.5 billion doses of the vaccine have been administered in 184 countries around the world. The U.S. Food and Drug Administration (FDA) has announced the approval of a new coronavirus vaccine against the subvariant omicron BA.5 virus, in preparation for a new wave of infection spikes this fall and winter.
The performance of the four major US equity indices on Wednesday (31):
Focus the actions
Among the five kings of science and technology, only Meta is the best. apple (AAPL-USA) fell by 1.06%; Half (META-US) increased by 3.67%; Alphabet (GOOGL-US) fell by 0.66%; Amazon (AMZN-USA) fell by 1.52%; Microsoft (MSFT-USA) fell by 0.57%.
Dow JonesMore than half of the constituents closed in the dark. sales force (CRM-USA) fell by 2.22%; Merck (MRK-US) fell by 1.75%; American Express (AXP-USA) fell by 1.72%; Amgen (AMGN-USA) rose by 0.49%; Goldman Sachs (GS-USA) increased by 0.47%.
half shareConstituent stocks generally closed lower. NVIDIA (NVDA-USA) fell by 2.42%; AMD (AMD-USA) fell by 2.38%; Applied Materials (AMAT-USA) fell by 0.48%; Micron (MU-USA) increased by 0.41%; Qualcomm (QCOM-USA) fell by 1.04%; Intel (INTC-USA) fell by 1.05%; Texas Instruments (TXN-USA) fell 0.92%.
Taiwan ADR was the best with UMC. TSMC ADR (TSM-USA) rose by 0.68%; ASE ADR (ASX-USA) rose by 0.35%; UMC ADR (UMC-USA) rose by 1.07%; Chunghwa Telecom ADR (CHT US) fell 0.97%.
Company news
apple (AAPL-USA) fell 1.06% to $ 157.22 per share. As Apple’s fall conference approached, analysts at Bank of America suggested that investors should focus on three key points: product, price, and timing. Additionally, analysts recalled that Apple’s stock price usually drops afterwards. the conference, but usually the price also increases. 30 to 60 days after launch.
HP (HPQ-USA) plunged 7.74% to $ 28.71 per share. Hewlett-Packard (HP) reported a third-quarter revenue decline after the bell on Tuesday, dragged down by declining demand for consumer personal computers (PCs). The slowdown is spreading to the commercial sector.
Hard drive manufacturer Seagate Technology (Seagate Technology) (STX-USA) fell 3.54 percent to $ 66.96 per share. Seagate Technology, citing a deterioration in the macroeconomic situation, lowered its forecast for the quarter ended September 30. $ 2.1 billion from the previous estimate of $ 2.5 billion.
Economic data
- ADP employment in the United States recorded 132,000 in August, an estimate of 288,000 and the previous value of 268,000
- The US Chicago PMI in August reported 52.2, expected to be 52.0, the previous value was 52.1
Wall Street Analysis
Tim Ghriskey, senior portfolio strategist at Ingalls & Snyder, said: “The Fed’s main concern is raising interest rates to reduce inflation and, in terms of aggression, it’s all about the data. There is a lot of volatility. in the right market Investors are concerned that these ups are just bear market ups and that stocks may hit new lows. “
“September is typically the worst month of the year, the only month of the year where there are more negatives than positives, so this year could be the spell of September,” said Sam Stovall, chief investment strategist. by CFRA.
The data is updated before the deadline, please refer to the actual quotation.
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