The latest US data showed signs of a cooling in the labor market, easing market concerns about future interest rate hikes by the Federal Reserve (Fed).dollar indexgo lower.
before the deadline,Dow Jones Industrial Averagerose more than 250 points or nearly 0.8%,Nasdaq Composite Indexrose more than 160 points or nearly 1.6%,S&P 500 indexnearly 1.2%,Semiconductor PhiladelphiaThe index rose nearly 2.3%.
The latest data released Thursday by the U.S. Department of Labor showed the number of people claiming unemployment benefits continued to climb to 225,000 last week, in line with market expectations, up 9,000 from the previous week. previous value of 216,000, but still close to historic lows. The data revealed that the labor market remained resilient despite tentative signs of a cooling after the Fed aggressively tightened monetary policy.
As the year draws to a close, investors are once again paying attention to the risks posed by the spread of COVID-19. As China eases its anti-epidemic policy and opens up outbound travel, the United States has said it will require Chinese passengers to show a negative test certificate for the new coronavirus before entering the country, and Italian health officials too will conduct virus screening for Chinese passengers During the flight, nearly half of the passengers were found to be infected with the new corona virus.
Meanwhile, India will reintroduce new coronavirus screenings for travelers from some major Asian countries, including China, on Jan. 1 amid fears of a new wave of home infections. On the other hand, Hong Kong has further lifted its testing restrictions on group gatherings and arriving passengers.
Global stock markets have lost a fifth of their value this year, the biggest annual drop since 2008. In addition, a global bond index has plunged 16% on rising inflation and rising interest rates .
Recently released US housing market data showed that the Fed’s aggressive interest rate hikes took a toll on the housing market: US pending home sales fell for the sixth straight month in November, dropping to the second low on record. Financing costs have roughly doubled since the beginning of the year and defense sales have been down for months.
Starting at 22:00 on Thursday (29th) Taipei time:
Focus on actions:
Tesla (ATS-US) rose 4.5 percent to $117.78 a share in early trading
Shares of Tesla, a leader in US electric vehicles, rose nearly 5% ahead of market after Morgan Stanley analyst Adam Jonas said in the latest report that the slump in Tesla’s stock price has created an opportunity for investors. Jonas maintained his “overweight” rating on Tesla stock, but lowered his price target from $330 to $250 per share and lowered his bull and bear market targets to $440 from $500 per share and $150 per share, respectively, and $80.
Goldman Sachs (GS-USA) rose 0.20% to $341.54 a share in early trading
Goldman Sachs chief executive David Solomon said in a year-end speech to company employees that the company is studying a new round of job cuts and will announce them within weeks. Su Dewei said the company’s business is being impacted by a large number of factors, including tightening monetary conditions and a slowdown in economic activity, and the Goldman Sachs team must prepare for a new round of twenty against.
Southwest Airlines (LUV-US) rose 0.62% to $32.39 a share in early trading
Southwest Airlines remains on investors’ radar as it struggles to recover from the issues that led to thousands of flight cancellations over the past week. Shares of Southwest Airlines rose nearly 0.2% before market after falling 11% in the past.
Today’s key economic data:
- The number of people filing for unemployment benefits in the US reported 225,000 last week, 225,000 expected and previous value was 216,000
- The number of Americans continuing to receive unemployment benefits last week was reported at 1.71 million, expected at 1.686 million, and the previous value was 1.669 million
Wall Street Analysis:
Craig Erlam, senior market analyst at Oanda, said investors are entering 2023 with a cautious attitude, bracing for more interest rate hikes from the Fed and anticipating a global recession. In addition, the 180-degree change in China’s epidemic prevention policy will also bring great uncertainty early next year.
Jeremy Siegel, a finance professor at the Wharton School of Business at the University of Pennsylvania, recently said that as the Fed finishes its efforts to fight inflation and shifts its focus to supporting economic growth, US stocks could rise by 20% in the first six months. months of next year. Furthermore, he also predicted that the Fed would cut the key interest rate from 2% to 3% by the end of next year.
