Major U.S. stock indexes opened lower on Tuesday (28th) as investors bet that the U.S. Federal Reserve (Fed) will raise interest rates further, leading to a rise in U.S. Treasury yields.
before the deadline,Dow Jones Industrial Averagerose more than 130 points or nearly 0.4%,Nasdaq Composite Indexfell nearly 0.1%,S&P 500 Indexfell nearly 0.2%,Philadelphia SemiconductorThe index rose nearly 0.01%.
Before the U.S. stock market opened, the S&P 500,Nasdaq Futures on the 100 index rose about 0.3%, reversing earlier losses following strong gains on Wall Street on Monday. U.S. Treasury yields rose,10-Year Treasury Bond YieldIt climbed 3 basis points, but remains below the key threshold of 4%.
Both U.S. and European stocks posted their biggest weekly losses this year last week on concerns that central banks will step up efforts to fight inflation, which aggressive tactics appear unable to stop. China Futures strategists said positioning data showed investors were set to become more pessimistic as they became heavily short U.S. and European stock futures.
Traders now expect U.S. interest rates to peak at 5.4% this year, up from around 5% just a month ago. US Federal Reserve (Fed) Governor Jefferson (Philip Jefferson) insisted on the central bank’s 2% inflation target and did not support raising it. He believes that the recent inflation data is very high. Don’t imagine that it is easy to return to the 2% target. At the same time, he will continue to look for signs of inflation cooling. If inflation slows down or develops in the wrong direction, more measures will be taken in the future.
As of 22:00 on Tuesday (28th) Taipei time:
Focus stocks:
Tesla (TSLA-US) rose 0.85 percent to $209.40 a share in early trade
After Tesla’s Berlin Gigafactory’s Model Y weekly production reached 4,000, the company’s other Texas Gigafactory, which currently only produces Model Y, is expected to reach the former’s production level soon. It is worth noting that Tesla’s stock price has continued to rise recently, rebounding by 19.86% within the month; U.S. stocks rose nearly 2% before the market opened on Tuesday. Tesla CEO Elon Musk will announce the third phase of the so-called “Master Plan” at the investor day on Wednesday (3/1).
apple (AAPL-US) was down 0.43% in early trade to $147.28 per share
TF International analyst Ming-Chi Kuo said that Apple has restarted the iPhone SE4. It has not yet been determined whether the iPhone 16 series will use Apple’s own 5G bandwidth chips. If SE4 starts using this chip, Qualcomm (QCOM-US)’s Apple business will decline significantly in the next 2-3 years.
Target Department Store (TGT-US) rose 1.19 percent to $168.79 a share in early trade
US retail giant Target announced its fourth-quarter financial report before the opening bell, with revenue of US$31.4 billion, far higher than the US$30.716 billion expected by Wall Street analysts; net profit of US$876 million was better than the expected US$800 million. Last quarter, same-store sales grew by 0.7%, mainly due to the increase in customer traffic; the gross profit margin was reported at 22.7%. After the announcement of the financial report, the stock price of Target Department Store rose slightly by about 0.3%.
Today’s key economic data:
- The initial monthly rate of U.S. wholesale inventories in January reported -0.4%, expected 0.1%, and the previous value of 0.1%
- U.S. February Chicago PMI reported 43.6, expected 45.0, previous value 44.3
- U.S. February consumer confidence index reported 102.9, expected 108.5, previous value 106
- Richmond Fed manufacturing index reported -16, expected -6, previous value -11
Wall Street Analysis:
Wei Li, global chief investment strategist at BlackRock, said the stock market is unaware of the macro challenges ahead. That’s not to say there can’t be a short-term rally, as it did in January, driven by technical factors and driven by the FOMC.
JPMorgan strategist Mislav Matejka said economic activity may now be peaking or could soon reverse, while stagnant inflation expectations suggest that value stocks will not perform as well relative to growth stocks from here on out. good. While stocks that are cheaper in two to three years are more attractive than growth stocks, expect value stocks to weaken this year.
