The US Federal Reserve (Fed) “Eagle King” Bullard (James Bullard) reaffirmed the central bank’s determination to fight inflation and warned that there was more pain ahead.
before the deadline,Dow Jones Industrial Averagefell more than 250 points or nearly 0.8%,Nasdaq Composite Indexfell more than 130 points or nearly 1.2%,S&P 500 indexfell nearly 1.2%,Semiconductor PhiladelphiaThe index fell by more than 0.5%.
Ahead of US stocks opening, St. Louis Fed Chairman Bullard, who holds the right to vote on the Federal Open Market Committee (FOMC) this year, said central bank policy has not yet reached a level restrictive enough, so it is not enough to reduce inflation, probably between 5% and 7%. The observations are a far cry from the current market pricing in a maximum interest rate level of around 5%.
After the aforementioned remarks from Brad came out,S&P 500 indexfutures,Nasdaq Futures on 100 indexes fell more than 1% in response, in the US 10-year Treasury bill yieldShort term pull ups,dollar indexContinuation of previous earnings.
Investors are turning their attention to the outlook for the US economy as the Fed prepares to tighten monetary policy further and the US Treasury yield curve has inverted to levels not seen in 40 years. Historically, an inverted US bond yield curve has meant that the US economy is on the verge of recession.
With US inflation just starting to ease after hitting a multi-decade high and retail sales growing at the fastest pace since August through October, several Fed officials are sending messages that more work is needed to ease pressure on prices.
In terms of the labor market, the U.S. Labor Department released its latest jobless claims data on Thursday. The adjusted number of initial jobless claims reported last week was 222,000, a decline of 4,000 from the previous value. revised by 226,000 and below market expectations by 225,000. , although the number has declined slightly, it has remained near historic lows, showing that the job market remains robust even as the rest of the US economy cools, and a strong job market could give the Fed reason to continue raising interest rates.
At the same time, there are other signs that the growth engine of the US economy is losing steam as US consumers suffer from inflation. Large US Retailer Target (Target) (TGT-USA) recently reported disappointing earnings, mainly due to the slowdown in consumer spending.
In the energy sector, oil and copper, sensitive to economic growth, extended losses amid signs of a worsening demand outlook. Separately, news emerged that European Central Bank (ECB) officials were considering raising eased interest rates by 2 yards (50 basis points) next month, a move that underscored the ECB’s worries about the economy and pushed the bank lower.EURexchange rate.
In other news, new Chancellor of the Exchequer Jeremy Hunt has proposed $55 billionGBP($65 billion) package of tax increases and spending cuts, following reportsGBPThe short-term depreciation against the US dollar was around 1% and the yield on UK government bonds increased by more than 8 basis points.
Starting at 22:00 on Thursday (17) Taipei time:
Focus on actions:
Macy’s (M-US) rose 10.89% to $21.86 a share in early trading
Macy’s beat Wall Street analysts’ expectations last quarter and raised its earnings forecast for the year. According to the financial report, Macy’s last quarter revenue was $5.23 billion, slightly higher than analyst forecasts of $5.2 billion; adjusted earnings per share were reported at $0.52, much higher than the $0.19 expected. Additionally, the company maintained its revenue guidance for the year, as it faces a more challenging sales scenario during the holiday season.
by Kohl’s (KSS-USA) rose 1.91% to $30.37 a share in early trading
Kohl’s withdrew its financial forecast Thursday, mainly due to uncertainties such as the macroeconomic situation and the exit of its CEO Michelle Gass. After the news broke, the stock fell nearly 4% ahead of the market.
Huida (NVDA-USA) rose 0.8 percent to $160.38 a share in early trading
Even though Nvidia’s third-quarter revenue fell 17% year over year to $5.93 billion, it was still better than analysts’ forecast of $5.77 billion. In addition, many Wall Street analysts were expecting for the company to recover next spring. rose more than 1% before market. Due to weakening market demand, Huida’s fourth-quarter earnings outlook was tepid, forecasting revenue of $6 billion (±2%), versus analysts’ estimate of $6.09 billion.
Today’s key economic data:
- The initial value of the total annualized number of building permits in the United States in October was 1.526 million, expected at 1.512 million and the previous value at 1.564 million
- October US Monthly Building Permits Starting Rate Was -2.4%, Expected -3%, & Previous Was 1.4%
- October Annualized Monthly New Housing Rate in US was -4.2%, -1.3% expected and -1.3% prior
- Annualized total of new housing starts in the U.S. in October reported at 1.425 million units, forecast at 1.41 million units, and prior value was 1.488 million units
- Number of people filing for unemployment benefits in the US reported 222,000 last week, 225,000 expected and 226,000 earlier
- The number of Americans continuing to receive unemployment benefits last week was reported at 1.507 million, expected at 1.5 million, and the previous value was 1.494 million
Wall Street Analysis:
Peter Kinsella, director of foreign exchange strategy at wealth management firm UBP in London, said remarks by St. Louis Fed Chairman Bullard that the end point in the federal funds rate could be between 5% and 7% drove up US bond yields and hit the stock market. In addition, Brad’s remarks on the feasibility of Ruan Zhuolu will also cause concern in the market, because if that happens, don’t worry about next year’s loose policy.
Sebastian Galy, senior macrostrategist at Nordea Investment Funds, said the question facing the US economy is how it responds to demand at a time when companies may be too aggressive in raising prices, both to preserve margins profit and to expect further inflation.