Declining US Treasury yields boosted growth in large caps and tech stocks, with high tech stocksNasdaq Composite Indexincreased by nearly 2.5%, traders began speculating that global central banks could slow the pace of aggressive monetary tightening to avoid a hard landing of the economy, the major US equity index opened higher on Tuesday (4 °).
Before the deadline,Industrial average of the Dow Jonesincreased by more than 550 points or nearly 1.92%,Nasdaq Composite Indexup to nearly 270 points or nearly 2.5%,S&P 500 Indexincreased by almost 2.2%,Semiconductor of PhiladelphiaThe index rose more than 3%.
A strong start to the fourth quarter on global markets boosted US index futures and US Treasuries, as investors started betting that the Federal Reserve’s tightening of monetary policy would be over in a few months.US dollar indexSecond day of defeat, the United States10-Year Treasury YieldIt also continued to fall.
The market believes that the Fed’s three violent 3-yard (75 basis point) interest rate hikes have begun to impact the economy. Yesterday’s ISM manufacturing data was far below expectations, supporting the Fed’s dovish trends. The funds rate will rise by March next year, reaching below 4.5%.
At the same time, there is also growing investor speculation that the global wave of harmful monetary tightening is nearing its end, especially as the RBA raised interest rates by just 1 yard (25 basis points) on Tuesday. lower than the previous forecast of 2 yards (50 basis points).
Money market signals show that the Fed will only raise interest rates by up to 125 basis points before March, a drop from market expectations for up to 165 basis points of interest rate hikes after the third hike. in rates last month.
WE. 10-Year Treasury YieldYields on 2-year government bonds and 2-year government bonds both fell, marking respectively 3.599% and 4.0637% before maturity, still showing an inverted trend; the dollar fell once to a new low since September 22, before maturity.US dollar indexdropped to 110.
GBPAgainst the greenback, it was trading higher to $ 1.1354, as the cancellation of the plans eased the government fiscal health nervousness, althoughGBPThe prospects are still cloudy.
In terms of energy, the Organization of Petroleum Exporting Countries and its partner countries (OPEC +) announced on Wednesday (5th) that they will announce a production cut plan, which will reduce daily production by 1 million barrels. Tuesday, up nearly 3% before deadline.
Starting at 9:00 pm on Tuesday (4th) Taipei time:
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Tesla (TSLA-USA) rose 3.93% to $ 251.92 per share at the start of the trade
Tesla’s third quarter sales report announced yesterday was not as good as expected and its share price plunged more than 8% to a two-month low, but Cathie Wood’s Ark Fund bought about 132,200 shares Tesla the same day, the fund’s first purchase of shares in the company since mid-June and the second time this year. Tesla shares are up nearly 3% in pre-market trading.
Riviano (RIVN-USA) rose 6.84% to $ 34.07 per share at the start of the trade
US electric vehicle startup Rivian announced yesterday that it produced more than 7,000 vehicles in the third quarter, an increase of approximately 67% from the previous quarter, and reiterated that its full-year production target of 25,000 remained unchanged. % on the good news before the market opens on Tuesday.
Huida (NVDA-USA) rose 3.38% to $ 129.35 per share at the start of the trade
Foreign media reported that the United States intends to announce new export restrictions to China to prevent Chinese companies from obtaining technology that can be used for high-performance computing (AI) smart devices.
After the news broke, Huida, Broadcom (AVGO-USA), Super Micro (AMD-USA), Intel (INTC-USA) and other chip makers bounced back when market analysts pointed to a US move that could limit competition from overseas but could also impact sales.
The main economic data today:
- The monthly growth rate of US durable goods orders in August was revised to -0.2%, the previous value was -0.2%
- US factory order monthly growth rate in August was 0%, expected 0.2%, former value – 1%
- The number of JOLT job vacancies in the US in August was 10.053 million, an estimate of 10.775 million and the previous value of 11.17 million
Wall Street Analysis:
Stephen Innes, managing partner of SPI Asset Management, said Australia’s stock offers the possibility of an early exit for extreme hawks and should provide some support for equities if other central banks follow suit.
Sevens Report’s Tom Essaye said US stock futures and European equities were solidly higher in the pre-market on Tuesday, while bond yields continued to drop along with the dollar and bond and stock prices rebounded on renewals. expectations that “the Fed has become less aggressive.”
