The Federal Reserve has maintained a hawkish tone and dashed hopes of cutting interest rates next year. British and European central banks continued on Thursday (15) to extend the cycle of rate hikes. Fears of an economic recession increased and the VIX Panic Index soared. The dishes fell in one piece,Dow JonesThe close plunged more than 760 points and the S&P closed nearly 2.5% in the black.That fingerdropped by more than 3%.tax halfCrash greater than 4%.
In terms of politics and economics, the Federal Reserve announced Wednesday that it would raise interest rates by 2 meters, slowing the pace of interest rate hikes. However, Fed Chairman Jerome Powell warned that recent signs of weakening inflation are not enough to get the Fed to fight inflation. The great war has been won.
The Federal Reserve has hinted that the terminal interest rate could exceed 5% next year and will not cut interest rates until 2024. The market expects two more interest rate hikes next year, with each hike of rates of at least 1 meter.
The Bank of England and the European Central Bank raised interest rates 2 yards on Thursday and extended the rate-hiking cycle, exacerbating worries about a global recession.
In addition, the United States has expanded its crackdown on China’s chip industry, including 36 technology companies, including Chinese memory chip maker YMTC, on a trade blacklist, including 21 major Chinese AI chip companies ( AI), 9 states are suspected of seeking support for, among others, Chinese military modernization companies.
The delisting risk of China’s conceptual stocks has cooled down, and the US audit of China’s conceptual stocks will come to an end. The US Public Company Accounting Oversight Board (PCAOB) announced on Thursday that it had obtained the authority to conduct comprehensive audits of companies headquartered in China and Hong Kong, creating PCAOB for the first time ever.
The global novel coronavirus pneumonia (COVID-19) epidemic continues to spread. Ahead of the deadline, data from Johns Hopkins University (Johns Hopkins University) showed that the number of confirmed cases worldwide has exceeded 651 million, and the number of deaths exceeded 6.66 million. More than 12.7 billion doses of vaccines have been administered in 184 countries around the world.
Thursday (15), the performance of the four main US stock indexes:
- US stocksDow Jones IndexIt slumped 764.13 points, or 2.25%, to close at 33,202.22.
- NasdaqThe index fell 360.36 points, or 3.23%, to close at 10,810.53.
- S&P 500 indexIt slumped 99.57 points, or 2.49%, to close at 3,895.75.
- Semiconductor PhiladelphiaThe index fell 115.86 points, or 4.17%, to close at 2,661.4 points.
Focus on the actions
None of the five kings of science and technology was spared. apple (AAPL-USA) down 4.69%; Alphabet (GOOGL-USA) down 4.43%; Microsoft (MSFT-USA) down 3.19%; Half (META-USA) down 4.47%; Amazon (AMZN-USA) down 3.42%.
Dow JonesThe constituents are almost all black. IBM (IBM-USA) dropped by 5%; disney (DIS-US) down 3.89%; Dow Chemical (DOW-US) down 3.56%; Salesforce (CRM-USA) fell by 3.2%; 3M (MMM-USA) down 2.94%.
tax halfThe constituent shares have all declined. Nvidia (NVDA-USA) down 4.09%; Applied Materials (AMAT US) fell 4.63%; Texas Instruments (TXN-USA) down by 3.30%; microns (MU-US) down 4.67%; intel (INTC-US) down 3.93%; Qualcomm (QCOM-USA) down 4.17%; AMD (AMD-USA) down 3.48%.
All Taiwan stock ADRs declined. TSMC ADR (TSM-USA) fell 2.46%; ASE ADR (ASX-USA) fell 2.42%; UMC ADR (UMC-USA) down 3.05%; Chunghwa Telecom ADR (US CHT) fell 0.52%.
Company news
Cathie Wood, who holds the title of “Goddess of Stocks” and is in charge of the investment management company Ark (Ark), is firmly optimistic about Tesla.ATS-US) bucked the trend and closed up 0.55% at $157.67 a share on Thursday, ending the decline for three consecutive trading days and the market value still fell below the $500 billion mark.
Weiteng Electronics (WDC-USA) fell 10.10% to $32.21 per share. Wall Street investment bank Goldman Sachs has downgraded Western Digital’s stock rating to “sell,” reflecting the continued downturn in the flash memory market.
Netflix (NFLX-USA) plunged 8.63% to $290.41 per share. On Thursday, foreign media Digiday cited sources as saying that Netflix, the leading streaming media, failed to meet viewing guarantees for advertising programs provided to advertisers. Netflix allows advertisers to recoup advertising fees that are not still get paid.
Economic data
- US November Retail Sales Reported -0.6%, Expected -0.1%, Previous Value 1.3%
- US November retail sales reported an annualized rate of 8.07%, up from 7.35%
- US Core Retail Sales November reported -0.2%, 0.2% expected, 1.3%
- Number of people filing for unemployment benefits in the US reported 211,000 last week, 230,000 expected and 231,000 previously
- The number of Americans continuing to receive jobless benefits last week was reported at 1.671 million, expected at 1.671 million, and the previous value was 1.67 million
- November Monthly US Industrial Production was -0.2%, -0.1% expected & was -0.1% previously
- US December Philadelphia Fed Manufacturing Index reported -13.8, expected -10, prior value -19.4
- US December New York Fed Manufacturing Index reported -11.2, expected -1, prior value 4.5
Wall Street analysis
The signal that the terminal interest rate could hit above 5% next year and hold there for some time is the main culprit for Thursday’s sharp drop in US stocks.
Nadia Lovell, senior US equity strategist at UBS Global Wealth Management, said: “We are not surprised by the decline in US equities. If the Fed moves in the direction the market expects, the Fed sent a markedly different signal Wednesday.”
“The Federal Reserve’s sharp rate hikes this year have been a potent dose of medicine for many stock market investors who want to keep rates low, despite recent inflation moderation,” said Kent Engelke, economic strategist at Capitol Securities Management. He was adamant that he couldn’t lose the war on inflation, so there was a sell-off on Thursday.”
The numbers are all updated before the deadline, please refer to the actual quotation
