Major US stock indexes opened higher on Monday (9) on optimism that China will reopen its borders, while signs of a cooling labor market strengthened bets on the Federal Reserve (Fed) slowing the pace of hikes of interest rates.
before the deadline,Dow Jones Industrial Averagerose more than 60 points or nearly 0.2%,Nasdaq Composite Indexrose more than 80 points or nearly 0.8%,S&P 500 indexup nearly 0.3%,Semiconductor PhiladelphiaThe index rose nearly 1.4%.
Before the US stock market opened, the US stock futures index rose, driven by the reopening of the Chinese border and the Fed’s slowing of interest rate hikes.Dow Jones IndexFutures rose 0.3%,S&P 500 indexFutures are up nearly 0.5%,Nasdaq Futures on 100 are up more than 0.6%.
The MSCI Emerging Markets Index was poised to enter a bull market after jumping more than 20% from its October low, largely buoyed by Chinese equities. China adjusts its COVID-19 strategy and proposes more economic support policies.
With the US ISM non-manufacturing index down last year and wage growth slowing, traders are betting the Fed will slow the pace of interest rate hikes. 10-year Treasury bill yieldincreasing.
The US is due to release its Consumer Price Index (CPI) report for December of last year on Thursday (12) and the market will focus on these important data. Last week’s latest nonfarm payrolls report failed to provide a clear picture of inflation and the unemployment rate Wages are at multi-decade lows and wage growth is slowing.
Kansas City Fed Chair Esther George warned on Friday that the Fed will face tougher choices if the U.S. job market begins to slow.
Karim Chedid, head of investment strategy for iShares EMEA at BlackRock, said: “I don’t think the time has come for the market to go back to Goldilocks as it is not the same as it has been for the past decade. While it is true that wages have declined come down, when you look at wages Compared to the 2% inflation target, there is still a gap between the two.
Interest rate markets are showing investors expect policy rates to peak below 5% this cycle, down from 5.06% ahead of Friday’s nonfarm payrolls report. While traders remain divided on the size of a rate hike in February, a one-metre (25 basis points) hike is more likely than a two-metre (50 basis points) hike.
At the same time, Morgan Stanley strategist Michael Wilson warned that the drop in US stocks is much larger than many pessimists predicted, and the specter of an economic downturn could exacerbate the worst annual drop in US stocks since the global financial crisis.
Wilson said that while investors are generally pessimistic about economic growth, corporate earnings expectations are still too high and the equity risk premium is at its lowest since 2008, meaning if the economy has a mild recession,S&P 500 indexThe drop from current levels could reach 22%.
In other news, international oil prices surged after a Chinese central bank official said China’s economic growth would soon return to normal as the government provided more financial support to households and businesses. Furthermore, after the latest data from the US showed that the Fed’s aggressive stance is expected to ease this year,goldPrices keep going up.
Starting at 22:00 on Monday (9) Taipei time:
Focus on actions:
Lululemon(LULU-US) fell 10.61% in early trading to $294.33 per share
Shares of Canadian sportswear brand Lululemon fell more than 10% in premarket trading after the company lowered its first-quarter gross margin forecast. The company raised its fourth-quarter net revenue forecast, forecasting annualized growth of 25% or more.
Bed, bath and beyond(BBBY-US) rose 17.59% to $1.54 a share in early trading
Shares of struggling homewares retailer Bed, Bath & Beyond are up more than 17% in premarket trading. The company warned last week that it may not be able to continue trading due to a lack of liquidity, sending shares tumbling.
Huida (NVDA-USA) rose 3.41% to $153.66 a share in early trading
Shares of Nvidia rose nearly 2% ahead of the market after analysts at Wells Fargo called the stock a top pick for positive changes to the data center product cycle this year.
Today’s key economic data:
nobody
Wall Street Analysis:
Citigroup CEO Jane Fraser expects the Fed to hike interest rates to just below 5.5% by May and then likely hold them through the end of next year, with a likely recession in the second half of this year. this year. While inflation in the US has peaked, service sector inflation continues to rise, she said.
Ronald Coase, an economist at the London School of Economics, said the Fed could raise interest rates more than the market currently expects, and the market will suffer. “All risks are to the upside, the 5.5% interest rate risk is relatively low,” he said.
