Major U.S. stock indexes were mixed on Tuesday (7th) as market optimism over a possible interest rate cut by the Federal Reserve (Fed) next year waned and investors were on pins and needles ahead of central bank officials making more comments on the outlook for interest rate policy.
before deadline,Dow Jones Industrial Averagefell nearly 50 points or nearly 0.1%,Nasdaq Composite Indexrose more than 20 points or nearly 0.2%,S&P 500 Indexdown nearly 0.2%,Philadelphia SemiconductorThe index fell nearly 0.1%.
Minneapolis Fed President Neel Kashkari, who holds a vote on the Federal Open Market Committee (FOMC) this year, said in an interview yesterday that although there are positive signs that price pressures are easing, he has declared victory. It’s too early for inflation. Kashkari hinted that the Fed’s current interest rate hike cycle is not over yet and is inclined to further raise interest rates in the future.
Stuart Cole, chief macroeconomist at brokerage Equiti Capital, said: “Kashkari’s comments injected a sense of reality into the market, which had previously thought that policy easing was imminent.”
Affected by Kashkari’s remarks, investor confidence was dampened. Major U.S. stock futures indexes fell before the market opened on Tuesday, while U.S. bond yields fell to 4.6%,dollar indexMoving higher to 105.470.
On the other hand, a report from Wall Street investment bank Goldman Sachs showed that hedge funds “aggressively” bought U.S. stocks at the fastest pace in two years last week, as investors generally expected that the Fed was unlikely to continue to raise interest rates, and U.S. stocks rebounded quickly . Global funds bought U.S. stocks aggressively in the week ended Nov. 3, the biggest five-day buying spree since December 2021.
In other news, Huw Pill, chief economist of the Bank of England (BOE), hinted that interest rates may be cut by the middle of next year. This is somewhat contrary to the message conveyed by the Bank of England last week, but it is obviously good news for the bond market, and British government bond prices rose. , yield rates fell. Separately, German industrial production data suggests a recession is not far away.
In terms of individual stocks, chip foundry manufacturer GlobalFoundries (GlobalFoundries) announced its financial results for the third quarter of fiscal year 2023 before the U.S. stock market opened on Tuesday. The operating profit for the quarter was better than Wall Street analysts expected. In addition, it also expressed expectations for the fourth quarter. The profit-per-share forecast range for the current quarter was higher than analysts expected, highlighting the latest sign that the semiconductor industry’s supply glut is easing. As of early trading, GLOBALFOUNDRIES (GFS-US) shares rose 5.79%, temporarily trading at $54.65 per share.
As of 21:00 Taipei time on Tuesday (7th): Focus stocks:
Uber(UBER-US) fell 1.83% in early trading to $47.26 per share
Uber announced its financial results for the third quarter of fiscal year 2023 before the U.S. stock market opened on Tuesday. Although revenue in the quarter increased by more than 10% year-on-year, it was still lower than Wall Street analysts’ expectations, setting the lowest growth record since 2021. At the same time, earnings per share performance Not as good as expected either. Uber’s stock price plunged 7% pre-market due to the financial report news, but the decline quickly narrowed due to its outstanding profit performance for two consecutive quarters.
Baidu (BIDU-US)ADR fell 1.20% in early trading to $107.10 per share
Citing people familiar with the matter, Reuters reported that Baidu will order artificial intelligence (AI) chips from Huawei this year, a further sign that U.S. pressure is pushing China to accept Huawei products as an alternative to Huida. According to people familiar with the matter, Baidu began placing orders with Huawei as early as late August, earlier than widely expected when new US restrictions would be released. The United States restricted the export of chips and chip manufacturing equipment to China in October, including products from AI chip giant Huida.
Tesla (TSLA-US) fell 0.39% in early trading to $218.42 per share
Tesla will increase the price of Model Y in China, another adjustment for the company in China, the world’s largest and most competitive electric vehicle market. A Tesla representative in China said that after raising the price of the Model Y high-performance version on October 27, the prices of other Model Y models will also be adjusted, although the timing of the adjustment has not yet been determined.
Today’s key economic data:
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Wall Street analysis:
Citi stated,S&P 500 IndexLast week saw its best weekly performance in a year, largely as investors locked in profits from bearish bets, suggesting there was little room for further gains. Chris Montagu, a strategist at the bank, said that contract flow tracking the benchmark index last week was mainly short covering, in which traders bought stocks to cover positions, and that overall positioning remained “moderately bearish.”
U.S. Treasury bond prices have rebounded recently as the U.S. Treasury Department slowed its pace of bond issuance and the central bank paused raising interest rates for a second consecutive time. According to Edward Yardeni, a market veteran and president of investment consulting firm Yardeni Research, this does not mean that the U.S. debt crisis is over. He pointed out that because the growing debt scale of the United States is worrying, the “bond market vigilantes” will continue to attack. The so-called “bond market vigilantes” refer to bond market investors who sell bonds to force Congress to reduce the fiscal deficit.
2023-11-07 14:44:47
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