On the penultimate trading day of 2023, the major indexes opened higher on Thursday (28th), whileS&P 500 IndexAs the market hopes that the U.S. Federal Reserve (Fed) will cut interest rates early next year, interest rates are hovering near historical highs.
before deadline,Dow Jones Industrial Averagerose nearly 40 points or nearly 0.1%,Nasdaq Composite Indexrose more than 30 points or nearly 0.2%,S&P 500 Indexrose nearly 0.2%,Philadelphia SemiconductorThe index fell nearly 0.1%.
U.S. stocks barely held on to some of their gains on Wednesday, with all three major stock indexes fluctuating between slight gains and losses during the session, but ultimately ended higher. All indices are rising on a monthly, quarterly and annual basis.
The focus now will be onS&P 500 Indexsuperior. A close above January’s record 4,796.56 would confirm that the index has entered a bull market after hitting a bear market closing trough in October 2022.
Early interest rate cut optimism over a possible soft landing for the U.S. economy next year and a boom in artificial intelligence (AI) have fueled a rebound in U.S. stocks in 2023, but concerns about a deeper economic slowdown remain as the full impact of rising borrowing costs emerges.
Susannah Streeter, head of currencies and markets at Hargreaves Lansdown, said: “People are predicting a Goldilocks next year, with inflation cooling but the US economy remaining warm enough, although there is still a risk that the bear market will return.”
The latest data released by the U.S. Department of Labor showed that the number of people claiming initial unemployment benefits last week was 218,000, higher than the 210,000 economists expected, and far exceeding the revised previous value of 206,000; the number of people continuing to receive unemployment benefits last week was reported 1.875 million people, in line with economists’ expectations, lower than the revised previous value of 1.861 million. Next, the market will focus on the non-farm payrolls data due out next Friday.
As of 22:00 Taipei time on Thursday (28th): Focus stocks:
VinFast(VFS-US) shares rose 0.36% to $8.51 per share in early trading
Foreign media reported on Thursday that Vietnamese electric vehicle manufacturer VinFast has established a partnership with North Carolina dealer Leith Automotive Group for the first time in the company’s latest effort to increase sales in the U.S. market.
apple (AAPL-US) shares rose 0.56% in early trading to $194.23 per share
Apple’s main Chinese partner Luxshare Precision (002475-CN) will gain control of an iPhone assembly plant run by a Taiwanese rival, as Apple ramps up ties with Chinese suppliers to improve relations with Beijing. The report also pointed out that the acquisition is expected to give Luxshare a better opportunity to cooperate with Hon Hai (2317-TW) Foxconn competition.
Tesla (TSLA-US) shares rose 0.82% to $263.58 per share in early trading
Although the gross margin of Tesla’s car manufacturing business will be under pressure, Morgan Stanley reiterated its “overweight” rating and $380 price target on Tesla stock in a report led by star analyst Adam Jonas. , 45% higher than Wednesday’s price. Although the report believes that the profit margins of its traditional automobile manufacturing business will continue to be under pressure in the coming year.
Today’s key economic data:
- The number of people claiming unemployment benefits in the United States last week was 218,000, which was expected to be 210,000, and the previous value was 206,000
- The number of Americans continuing to receive unemployment benefits last week reported 1.875 million, 1.875 million expected, and the previous value of 1.861 million
Wall Street analysis:
UBS believes that the U.S. economy will enter recession next year, which will lead to a sharp interest rate cut by the Fed. As early as November, UBS predicted that the Fed would respond to falling inflation and economic recession by cutting interest rates by 275 basis points. This rate cut is eye-popping, almost four times the 75 basis points currently expected by the market.
Wharton finance professor Jeremy Siegel, known as the “Wharton Wizard”, said that by December next year, the inflation rate will slow to about 2.5%, and the risk of economic recession will be less than 50%, and hinted that the Fed There may be 5 or 6 interest rate cuts next year, bringing interest rates below 4%. The stock market may rise another 10% to 15%, and house prices may rise 5% to 10%.
2023-12-28 14:41:11
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