Major U.S. stock indexes opened lower on Tuesday (9th), with rising U.S. bond yields putting pressure on large-cap stocks as traders lowered expectations for a central bank interest rate cut ahead of a major inflation report later this week.
before deadline,Dow Jones Industrial Averagefell more than 300 points or nearly 0.8%,Nasdaq Composite Indexfell more than 100 points or nearly 0.8%,S&P 500 Indexfell nearly 0.7%,Philadelphia SemiconductorThe index fell nearly 1%.
U.S. stocks and bonds fell as a rebound driven by technology stocks faded and investors returned to worry about risks such as inflation and bond volatility. Major futures indexes were lower before U.S. stocks opened, with technology stocks giving back some of yesterday’s gains.
The U.S. inflation report to be released on Thursday (11th) and the earnings season starting on Friday (12th) will keep investors on the sidelines. Meanwhile, many are making room in their portfolios to absorb Tuesday’s tsunami of debt supply.A record of at least 43 billionEUR ($47 billion) of new publicly syndicated debt will be priced on Tuesday, with the final total likely to be higher. These debts originate from financial, corporate and public sector borrowers.
“The new year is already testing the 2023 Christmas rally,” said Mizuho International strategist Evelyne Gomez-Liechti, citing pressures including an unexpectedly strong U.S. labor force, an overdone rally and new government and corporate debt. Oversupply.
US benchmark 10-Year Treasury Bond Yieldremained above 4%, even as strong labor market data last week prompted traders to reduce their bets on rapid easing of monetary policy by the Federal Reserve. 10-year yieldIt surged 17 basis points, but former bond king Bill Gross still called this level “overvalued.”
On the energy front, international oil prices rebounded from their biggest decline in about a month on signs of weakness in the physical market, including sharp price cuts by OPEC+ leader Saudi Arabia.
In other news,BitcoinTrading prices fell after surging above $47,000 as investors bet the U.S. is preparing to approve the first trancheBitcoinSpot ETFs.
As of 22:00 Taipei time on Tuesday (9th): Focus stocks:
Microsoft (MSFT-US) shares fell 0.59% in early trading to $372.46 per share
According to foreign media reports on Tuesday (9th), Microsoft’s $13 billion investment in OpenAI may face a comprehensive merger investigation by the European Union after the latter’s high-level personnel turmoil exposed the deep ties between the two companies.
Mobileye(MBLY-US) shares fell 0.13% in early trading to $31.39 per share
US chip maker Intel (INTC-US)’s autonomous driving technology company Mobileye will provide advanced driver assistance system (ADAS) technology for Indian automaker Mahindra & Mahindra’s next-generation cars as the company focuses on the growth of the Indian auto market.
Amazon (AMZN-US) shares fell 0.01% in early trading to $149.08 per share
Workers at Amazon’s new distribution center in Birmingham have voted to join the company’s ongoing strike action over pay and working conditions, Britain’s GMB union said on Tuesday. GMB said warehouse workers will go on strike on January 25, but the news has not yet been officially recognized by the US e-commerce giant. It is also unclear how many workers will participate in the strike.
Today’s key economic data:
none
Wall Street analysis:
Bob Michele, global head of fixed income at JPMorgan Asset Management, recently said that the Fed is likely to cut interest rates by up to 250 basis points by 2024. What the Fed did to ensure the U.S. economy maintained a soft landing: they gradually began lowering the federal funds rate. Otherwise, interest rates will become too powerful a headwind.
2024-01-09 14:46:59
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