Major U.S. stock indexes opened higher on Wednesday (27th) as weaker U.S. bond yields boosted large-cap stocks. Investors are awaiting progress on the U.S. fiscal bill and inflation data this week to determine the policy outlook of the Federal Reserve (Fed).
before deadline,Dow Jones Industrial Averagerose nearly 17 points or 0.05%,Nasdaq Composite Indexrose nearly 80 points or nearly 0.6%,S&P 500 Indexrose nearly 0.3%,Philadelphia SemiconductorThe index rose nearly 0.8%.
The sell-off in stocks and bonds eased as markets returned to calm after interest rate jitters pushed U.S. stocks to their lowest levels since early June. Wall Street’s fear gauge, the Chicago Board Options Exchange Volatility Index (VIX), retreated after hitting its highest level since May.
U.S. Treasury yields fell 3 basis points, retreating from 16-year highs on speculation that the Federal Reserve will maintain restrictive policies into next year or longer.dollar indexIt is close to a new high this year.
Deutsche Bank interest rate strategist Hauke Siemssen said that the market has no reason to sell further, and part of the reason for the stability may be due to psychological factors. Investors have hit the bond yield threshold and need a more concrete reason to cross it.
Minneapolis Fed President Neel Kashkari posted a message on the bank’s official website yesterday that he believes the Fed has a 60% chance of lowering inflation to its 2% target without causing serious damage to the economy. harm, and there is a 40% chance that inflation may become entrenched and require further interest rate increases to control it.
Referring to a soft landing scenario, Kashkari said another 1% (25 basis point) rate hike may be necessary later this year before the Federal Open Market Committee (FOMC) keeps policy rates at that level long enough. time to bring inflation back to target within a reasonable period of time.
In terms of economic data, driven by a rebound in business equipment orders, the initial monthly growth rate of U.S. durable goods in August was reported at 0.2%, far exceeding the expected decline of 0.5%. The previous value was revised down to -5.6%. Data revealed that despite rising borrowing costs in the United States, investment remains resilient.
In addition, the initial monthly rate of durable goods orders excluding volatile transportation categories increased by 0.4% in August, which was higher than the expected 0.2%. The previous value was revised down from a growth of 0.4% to 0.1%. In addition, excluding aircraft and defense capital goods orders, the monthly rate increased by 0.9%, higher than the expected 0.1%. The previous value was revised down from 0.1% to a decline of 0.4%.
As of 21:00 Taipei time on Wednesday (27th): Focus stocks:
Meta Platforms(META-US) rose 0.43% in early trading to $300.25 per share
Meta’s annual Connect conference will kick off with a keynote speech on September 27th and 28th, local time in the United States. It is expected that Facebook’s parent company will make Meta Quest 3 the core of the event. In addition to major hardware appearances, this year’s event seems to be equally focused on software innovation, including Meta’s expanding development in artificial intelligence and the original universe.
Microsoft (MSFT-US) rose 0.36% in early trading to $313.27 per share
According to The Information, citing people familiar with the matter, Microsoft is developing lower-cost artificial intelligence (AI) designed to imitate the quality of OpenAI models. Microsoft product teams are testing smaller, cheaper models that the company has built using open source AI models. The company is considering whether to offer these cheaper models to its Azure cloud customers.
Faraday Future (FFIE-US) fell 27.32% in early trading to $1.79 per share
Electric vehicle startup Faraday Future’s U.S. stocks plunged more than 20% before the market opened on Wednesday (27th) after the cash-strapped company announced plans to raise up to $90 million through a stock issuance. Faraday Future said it intends to use the funds raised for operations, including increasing production, repaying debt and potential merger opportunities.
Today’s key economic data: The initial monthly rate of U.S. durable goods orders in August was 0.2%, expected – 0.5%, and the previous value was – 5.6%. The initial monthly rate of U.S. 8 core durable goods orders was 0.4%, expected 0.1%, and the previous value was 0.1 % Wall Street Analysis:
Bob Michele, chief investment officer of fixed income at JPMorgan Asset Management, said: “We are at a turning point in the economy and the bond market. The past 15 years have been abnormal, we have reached a structural low, and now we will return to a more normal state. .”
Mike Wilson, chief investment officer at Morgan Stanley, recently said that consumer stocks will face significant downside risks in the next quarter as Americans are hit by high oil prices, student loan payments and expensive housing expenses.
2023-09-27 13:48:51
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