Major U.S. stock indexes opened higher on Thursday (21st) after economic data released earlier solidified investors’ bets on expectations of a rate cut by the Fed. In addition, US memory chip manufacturer Micron boosted its stock price after announcing an optimistic financial forecast a few days ago, opening up more than 7% on Thursday.
before deadline,Dow Jones Industrial Averagerose more than 300 points or nearly 0.8%,Nasdaq Composite Indexrose more than 160 or more than 1%,S&P 500 Indexrose nearly 0.9%,Philadelphia SemiconductorThe index rose more than 2%.
The latest data released by the U.S. Department of Commerce showed that the annual growth rate of gross domestic product (GDP) in the third quarter was revised down to 4.9%, lower than the market consensus of 5.2%. The previously announced revised value was 5.2%.
In addition, the final value of the third-quarter personal expenditures and consumption (PCE) price index, which was announced at the same time as GDP, was also revised down to 3.1%, lower than expected and the previous value of 3.6%, while the final value of the core PCE quarterly growth rate was revised down to 3.1%. 2%, also lower than the previous value and the expected 2.3%, consistent with the Fed’s 2% inflation target.
At the same time, the number of Americans filing initial claims for unemployment benefits grew less than expected last week and remained near historical lows, indicating that the job market remains resilient. According to data from the Labor Department, the number of people claiming unemployment benefits increased by 2,000 to 205,000 in the week ended December 16.
Some market observers blamed the so-called zero-day expiration (ODTE) for Wednesday’s plunge in U.S. stocks, noting that heavy put option volume could cause holders to sell the underlying stocks. But many believe the backdrop of slowing inflation and bets on rate cuts mean such speed bumps will be short-lived.
Citigroup strategists recommend buying on a pullback, adding that investors should expect volatility ahead, but the Fed’s eventual policy changes will be a North Star for guidance.
Philadelphia Fed President Patrick Harker on Wednesday further strengthened his belief in lowering interest rates. He said lowering interest rates was important, but he also warned that the central bank should not move too quickly or “immediately.”
As of 22:00 Taipei time on Thursday (21st): Focus stocks:
apple (AAPL-US) shares rose 1.06% to $196.89 per share in early trading
According to people familiar with the matter, Apple is accelerating the production of the Vision Pro mixed reality (MR) headset in preparation for its market launch in February next year. Apple sent an email to software developers on Wednesday, encouraging them to use the latest tools to test their apps to “get ready” for Vision Pro and send their software to Apple in return. This is another sign that the product is nearing launch.
Micron (MU-US) shares rose 9.00% to $85.77 per share in early trading
American memory chip maker Micron’s stock price surged more than 5% before the market opened on Thursday after the company released its latest financial forecast and stated that the supply and demand balance of memory and flash storage will recover strongly next year. Analysts said Micron’s stock price rebounded faster than expected.
Boeing (BA-US) shares rose 2.49% to $267.15 per share in early trading
According to foreign media reports on Thursday, Boeing will restart deliveries of the 787 Dreamliner to China within a few days, marking the first resumption of deliveries since April 2021. Some analysts believe that this is a sign that tense U.S.-China trade relations may be easing, and may also pave the way for China to end Boeing’s more than four-year freeze on the delivery of the 737 Max.
Today’s key economic data:
- The number of people claiming unemployment benefits in the United States last week was 205,000, compared with the expected 214,000, and the previous value of 203,000
- The number of Americans continuing to receive unemployment benefits last week reported 1.865 million, 1.888 million expected, and the previous value of 1.866 million
- The final annual rate of U.S. GDP growth in the third quarter was 4.9%, which was expected to be 5.2% and the previous value was 5.2%.
- The U.S. third-quarter PCE quarterly growth rate finalized at 3.1%, expected to be 3.6%, and the previous value was 3.6%
- Philadelphia Fed manufacturing index for December was -10.5, expected -3.0, previous value -5.9
Wall Street analysis:
Stocks are surging on expectations the Fed will turn to interest rate cuts next year, but investment bank Barclays is cautious. Analysts at the bank said that due to the threat of high inflation, this cycle is significantly different from any experienced in the past few decades.
JPMorgan Chase’s chief market strategist said in a report that investors should favor cash over stocks in 2024 because the Fed seems unlikely to cut interest rates quickly.The analyst forecasts 2024S&P 500 IndexA target of 4,200 points means the index could fall 12% from current levels.
2023-12-21 14:41:36
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