The US Federal Reserve (Fed) has decided to raise interest rates and has exacerbated fears of an economic downturn, together with the arrival of the quarterly settlement day of the “Four Witches” derivative products, increasing the stock market volatility, the four major US stock indexes Friday ( 16) Complete blackout, down for the third day in a row, oil prices fell, gold prices rose,dollar indexsmall rise.
US stocks have two consecutive blacks for the week,Dow JonesA total of 1.66% fell this week, the S&P fell 2.09%,Nasdaqdown 2.72%.NasdaqIt fell below its 50-day moving average on Thursday and the S&P 500 also fell below this major technical support which symbolizes stock market momentum on Friday.
Two Fed officials vowed on Friday to raise interest rates to fight inflation, echoing Chairman Jerome Powell’s aggressive comments after the policy meeting. Federal Reserve Bank of New York chairman John Williams predicted next year’s final rate could exceed the 5.1% forecast in the December rate dot chart, while Federal Reserve Bank of San Francisco chairman Mary Daly said high inflation could be higher than expected. longer, none of the politicians predicted a rate cut next year.
The Fed raised interest rates by 2 yards (50 basis points) on Wednesday and major central banks such as Europe and the UK also raised interest rates. Although interest rate hikes in major countries have are reduced from previous times, all showed their determination to continue tightening and admitted that the economy could decline next year.
According to money market bets, the market currently expects the Fed to raise interest rates at least twice next year by 1 yard each. The interest rate will peak at about 4.8% before the middle of next year and will drop to 4.4% by the end of next year.
US President Joe Biden signed into law a short-term funding bill on Friday to give Congress time to agree on spending for fiscal 2023 and avoid a government shutdown.
On the geopolitical front, the Biden administration is still considering whether it is necessary to continue with the Trump-era tariffs on China, at this moment the United States has decided to postpone the tariff exemption for some Chinese goods to September 30 next year, including pumps, compressors, air purifiers and water filters, valves and various motors and other 352 products, but the tariff exemption for the remaining 197 products will not be valid.
US House Speaker Nancy Pelosi backed a proposal approved by the Senate this week to ban government devices from downloading or using software from China’s TikTok, meaning the case would have to go to the House for a vote before adjourning the law. next week for the signing of Biden.
The new global epidemic of coronary pneumonia (COVID-19) continues to spread. Ahead of the deadline, data from Johns Hopkins University in the United States showed the number of confirmed cases worldwide rose to 652 million and the number of deaths surpassed 6.663 million. More than 13.1 billion doses of vaccines have been administered in 184 countries around the world.
The performance of the four major US stock indexes on Friday (16):
Focus on the actions
Among the five kings of science and technology, only Meta finished higher. Apple (AAPL-USA) down by 1.46%; Half (META-USA) up 2.82%; Alphabet (GOOGL-USA) down 0.66%; Amazon (AMZN-USA) down 0.67%; Microsoft (MSFT-USA) down 1.73%.
Dow Jones Only 5 of the 30 constituent stocks increased. Heavy Industries Kintor (CAT-US) +0.89%; boeing (BA-USA) up 0.53%. American Express (AXP-USA) down 2.61%; Nike (OF THE UNITED STATES) fell 2.36%; McDonald’s (MCD-USA) down 2.06%.
tax halfComponent inventories have generally declined. FG (GFS-USA) down 2.96%; Marvell (MRVL-US) fell 2.57%; Huida (NVDA-USA) fell by 2.25%; ASML (ASML) fell 2.05%.
Taiwan stock ADR closed in the black. TSMC ADR(TSM-USA) fell 1.69%; ASE ADR (ASX-USA) fell 1.08%; UMC ADR (UMC-USA) down 0.57%; Chunghwa Telecom ADR (US CHT) down 0.69%.
Company news
Goldman Sachs (GS-USA) fell 0.98% to close at $346.35 per share. Goldman Sachs is said to be laying off 4,000 people. The company’s management was asked to draw up a list of underperforming staff. It will cut up to 8% of its staff early next year, but some people say the last of the list hasn’t been drafted yet.
Meta bucked the trend and rose 2.82% to close at $119.43 per share. JPMorgan Chase raised its investment recommendations rating from “neutral” to “overweight,” it believes the company’s revenue and profit pressures will ease next year and a series of cost-control measures will attract attention. Also, privacy changes to Apple’s iOS operating system help ease sales pressure.
Adobe(ADBE-US) rose 2.99% to close at $338.54 a share. The Photoshop developer announced Thursday after the close that its fourth-quarter earnings and first-quarter EPS forecasts were ahead of market expectations .
universal (GM-USA) fell 3.88% to close at $36.15 per share. The U.S. National Highway Traffic Safety Administration (NHTSA) said Friday it had opened an investigation into General Motors’ robotic taxi unit Cruise to determine whether the brakes on Cruise’s self-driving car braked hard. or they didn’t work, leading to a collision that injured two people.
Economic data
- The US preliminary global PMI was reported at 44.6 in December, below market expectations of 47.0 and 46.4 in November.
- The initial value of the US manufacturing PMI in December was 46.2, lower than market expectations of 47.7 and 47.7 in November.
- The initial PMI for the US services sector in December was 44.4, below market expectations of 46.8, and was 46.2 in November.
Wall Street analysis
United States,EURThe region and the Bank of England subsequently raised interest rates this week and made it clear to the market that the cycle of rate hikes is not over yet, diluting the chances of the traditional “Christmas market” appearing this year. Markets also digested a flurry of US economic reports this week that showed the economy was slowing while the US job market remained strong.
Kim Forrest, founder of Bokeh Capital, said that since the US announced its weak consumer price index (CPI) on Monday, everyone expected the Fed and even other central banks to become less aggressive in suppressing inflation .
“It looks like the market is finally starting to understand that bad news is bad news,” said Dave Wagner, equity analyst and manager of Aptus Capital Advisors. United States towards a successful soft landing, but I think I’m overly optimistic.”
Paul Schatz, chairman of Heritage Capital, believes this wave of selling pressure is similar to the one that plunged the S&P into a bear market in June. Although the S&P rebounded in the summer, it refreshed again to this year’s low in October.
The numbers are all updated before the deadline, please refer to the actual quotation
