Before Federal Reserve Chairman Jerome Powell gave a speech at the annual meeting of global central banks, the major US stock market index fluctuated in a tight range after Wednesday’s opening bell (24).Dow JonesAnd the S&P closed over 0.1%, ending a three-session losing streak.
On the political and economic front, US President Biden has announced new student loan amnesty measures.For individuals with an annual income of less than $ 125,000 or households with an annual income of $ 250,000, each borrower will be forgiven. $ 10,000 in federal student loans, while $ 20,000 in student loan debt relief for borrowers who attended college with federal Pell grants.
Politics could help attract younger, more educated pro-Democratic voters as midterm elections approach, although it may increase inflationary pressures in the U.S.
Markets await the annual Federal Reserve meeting of global central banks in Jackson Hole 25-27, after Minneapolis Fed Chairman Neel Kashkari remarked on Tuesday, “With high inflation, I’d rather push it too far until there are clear evidence that high inflation is falling back. “
However, Nobel laureate economist Joseph E. Stiglitz, a professor at Columbia University, warned on Wednesday that excessive increases in interest rates could exacerbate the inflation problem because rising interest rates cannot solve the problems on the side of the economy. ‘supply and could even make matters worse, businesses can raise prices without losing business, and landlords could pass the increased interest costs on to tenants.
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 598 million and the number of deaths exceeded 6.46 million. More than 12.5 billion doses of the vaccine have been administered in 184 countries around the world. US First Lady Jill Biden has been testing “yin to yang” for the new corona virus and Biden will wear a mask indoors and in contact with others for the next ten days.
The performance of the four major US equity indices on Wednesday (24):
Focus the actions
The five kings of technology were mixed. apple (AAPL-USA) increased by 0.18%; Half (META-US) increased by 1.33%; Alphabet (GOOGL-US) fell by 0.15%; Amazon (AMZN-USA) increased by 0.13%; Microsoft (MSFT-USA) fell 0.24%.
Dow JonesMore than half of the voters earned. Pioneering heavy industries (CAT-US) fell by 1.55%; IBM (IBM-United States) fell by 1.12%; Dow Chemical (DOW-US) fell by 2.48%; Salesforce (CRM-USA) increased by 2.28%; Boeing (BA-US) increased by 2.21 percent.
half shareThe constituent actions are exchanged with each other. microns (MU-USA) increased by 0.78%; AMD (AMD-USA) increased by 0.26%; NVIDIA (NVDA-USA) increased by 0.24%; Applied Materials (AMAT-USA) fell by 0.19%; Texas Instruments (TXN-USA) fell by 0.19%; Qualcomm (QCOM-USA) increased by 0.42%.
Taiwan’s equity ADRs were generally weak. TSMC ADR (TSM-USA) fell by 0.55%; ASE ADR (ASX-USA) down by 0.84%; UMC ADR (UMC-USA) was flat; Chunghwa Telecom ADR (CHT US) fell by 0.54%.
Company news
apple (AAPL-USA) rose 0.18 percent to $ 167.53 per share. Apple issued a letter of invitation to the Fall New Product Launch Conference on Wednesday. The time is set at 10:00 West Coast Time on September 7 (01:00 Taiwan Time on September 8). In addition to the iPhone 14 series, it may also launch the Apple Watch 8 series and many other new products.
The American leader of electric cars Tesla (TSLA-USA) rose 0.22 percent to $ 891.29 per share. Tesla performed a “1 for 3” stock split after the bell on Wednesday and traded at the post-split price at Thursday’s open – Tesla’s second stock split in less than two years.
After Biden announced the student loan amnesty, fintech firm SoFi (SOFI-US) rose 4.54 percent to $ 6.45 per share. Jefferies analyst John Hecht said, “While many details remain to be determined, the average annual income of SoFi members is approximately $ 170,000, well above the $ 125,000 annual income limit set by Biden’s plan, the which removes an open question “.
Zoom video conferencing software company (ZM-USA) was up 2.82% to $ 83.61 per share on Wednesday. While Zoom plunged 16.54% on Tuesday, “goddess of technology” Cathie Wood chose to re-enter the market to buy more than 800,000 shares.
American luxury fashion retailer Nordstrom (JWN-US) plunged 19.96 percent to $ 18.57. After Macy’s, Nordstrom lowered its forecast for the year, citing a slowdown in business due to falling demand and a backlog of inventories.
Economic data
- The initial monthly rate of US durable goods orders in July was 0.0%, expected at 0.6% and the previous value of 2.0%
- The initial monthly rate of basic durable goods orders in the United States in July was 0.3%, expected to be 0.2% and the previous value of 0.3%
- The Seasonally Adjusted US Existing Home Sales Index for July reported a monthly rate of 1.0%, expected -4% and previous value of -8.9%
- US Seasonally Adjusted Existing Home Sales Index Annual Rate for July of -22.5, expected 21.4%, -19.8%
- Last week in the United States (as of 19/8) the changes in crude oil inventories were reported – 3.282 million barrels, forecast – 933,000 barrels, the previous value – 7.056 million barrels
Wall Street Analysis
“The market is in a stagnant phase right now, with US equities hovering almost flat in anticipation of Powell’s hawkish speech,” said Brian Price, director of investment management at Commonwealth Financial Network.
Fahad Kamal, chief investment officer at Kleinwort Hambros, said: “Growth is falling sharply everywhere and signs of weakening economic conditions are evident, but I think Powell will keep his hawkish tone and will have to act hard on inflation.” .
Lisa Erickson, strategist at Bank of America Wealth Management, said: “In the current situation, there is a risk that the Fed will aggressively raise interest rates next month. Powell could provide forward-looking guidance to the market at its annual meeting. of the central bank and the stock market could suffer greater losses ”.
The data is updated before the deadline, please refer to the actual quotation.
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