The Federal Reserve begins its two-day interest rate meeting on Tuesday (19th).10-year U.S. Treasury yieldIt climbed over 4.36%, hitting a new high since 2007. All four major indexes were wiped out, and the S&P 500 and S&P hit their lowest closing prices so far in September.
On the political and economic front, the Federal Reserve is about to announce its interest rate decision. According to the CME FedWatch tool, investors are betting that the probability that the Federal Reserve will skip raising interest rates in September and keep interest rates unchanged is as high as 99%.
Much of investor attention will be on Federal Reserve Chairman Jerome Powell’s views on the November meeting, any new signs of future Fed actions, updated economic forecasts, and the interest rate dot plot.
After the Federal Reserve meeting ends, the Bank of England and the Bank of Japan will announce policy decisions on Thursday and Friday respectively.
Although Wall Street Journal reporter Nick Timiraos, known as the “Fed’s mouthpiece,” wrote that a soft landing for the U.S. economy may be difficult to achieve, U.S. Treasury Secretary Yellen said that the U.S. economy remains on track to achieve a soft landing. Yellen mentioned that the recent rise in oil prices is unwelcome, but eventually oil prices will stabilize.
The U.S. government is facing another shutdown crisis within two weeks. PIMCO analysis pointed out that if U.S. federal agencies are shut down for a long time due to funding issues at the end of this month, the Federal Reserve is unlikely to raise interest rates in November.
In terms of geopolitics, Chinese Vice President Han Zheng held talks with U.S. Secretary of State Blinken on the sidelines of the United Nations General Assembly on Monday. He said that China-U.S. relations face “many difficulties and challenges” and require both sides to “show more sincerity” and “work toward each other halfway.” ”.
In addition, U.S. Commerce Secretary Gina Raimondo said that the U.S. government has assessed that Huawei does not have the ability to mass-produce 7-nanometer chips and has not yet found evidence that China’s Huawei has the ability to mass-produce 5G mobile phones.
Performance of the four major U.S. stock indexes on Tuesday (19th):
Corporate News
Following SoftBank’s chip design company ARM (ARM-US) After a successful IPO, online grocery delivery platform Instacart traded under the stock symbol CART on Tuesday.NasdaqOn the first day of listing, the IPO opened in the red and closed up 12.33% to US$33.70 per share.
Tesla (TSLA-US) rose 0.46% to $266.50 per share. There were rumors that Tesla and Saudi Arabia were in preliminary talks to build an electric car factory, but Tesla CEO Musk denied it.
Intel (INTC-US) fell 4.34% to $36.34 per share. Intel held the third Intel Innovation Day in Silicon Valley. The company announced that it will launch the first batch of next-generation Core Ultra processors code-named “Meteor Lake” on December 14. This new chip can run on laptops. Generative artificial intelligence (AI) chatbots do not require the computing power of cloud data centers.
Amazon (AMZN-US) closed 1.68% lower at $137.63 per share. On the eve of Amazon’s new product launch, employees in its popular hardware device divisions such as the Kindle e-book reader and Echo voice assistant revealed that the morale of the department has been hit hard as it faces large-scale layoffs and the departure of key senior executives in the department may affect the development of new devices.
The United Auto Workers (UAW) strike against the three major automakers enters its fourth day, and talks between the UAW and the automakers appear to be at an impasse, with the UAW saying that if talks with Ford, General Motors and Stellantis this week fail to Significant progress has been made, with more factories set to announce strikes on Friday.
Ford (F-US) closed with a 1.78% dividend, General Motors (GM-US) rose 1.86%, Stellantis ADR (STLA-US) shares rose 2.06%.
Wall Street Analysis
Laura Cooper, senior macro investment strategist at iShares EMEA, said: “Due to persistent inflationary pressures, the Fed should keep interest rates in a restrictive range in 2024.”
Deutsche Bank said: “The latest economic forecasts released by the Federal Reserve are likely to see meaningful revisions, and these forecasts are likely to show growth and labor market growth, as well as lower inflation, at least through 2023.”
David Kalfon, chief executive of Sanso Investment Solutions, said: “Central banks have done a pretty good job so far, but now there is little room for maneuver. They have made it clear from the beginning of this week that the key is to curb inflation, not economic growth.”
The figures are all updated before the deadline, please refer to the actual quotation.
2023-09-19 21:17:46
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