Investors fear that the Federal Reserve (Fed) will fight inflation and raise interest rates aggressively, which will lead to a recession. Major US stock indices opened lower on Friday (23),Industrial average of the Dow Jonesdropped below 30,000 points.
Before the deadline,Industrial average of the Dow Jonesdown by nearly 400 points or nearly 1.3%,Nasdaq Composite Indexdown by nearly 200 points or nearly 1%,S&P 500 Indexfell by almost 1.7%,Semiconductor of PhiladelphiaThe index fell more than 2%.
The UK government has launched a $ 45 billion plan to boost domestic demand and save an economy on the brink of recession.GBPincluding scrapping plans to raise corporation tax to 25%, abolition of the top 45% tax rate, stamp duty reduction, and more.
The tax cuts are said to be greater than those introduced in 1988 under “Iron Lady” Margaret Thatcher and are the largest in half a century.
British government bonds fell sharply,GBPFalling to a new 37-year low, markets priced at a more aggressive pace of tightening in the UK to offset the fiscal stimulus. at the same time,US dollar indexRefresh High, United States 10-Year Treasury Yieldreached its maximum for over 10 years.
As the US dollar continued to rise and markets expected the Fed to further tighten interest rates by 1.25 percentage points by the end of the year, a surprise rate cut by the Turkish central bank pushed the lira to an all-time low, its largest weekly decline in 23 years.
Goldman Sachs will do itS&P 500 IndexThe year-end target was reduced to 3,600 from 4,300, mainly due to the Federal Reserve’s higher rate hike path.EURThe September region’s Markit Manufacturing Purchasing Managers’ Index (PMI) returned 48.5, down from 48.7, and the previous value was 49.6. Strategists gave up their expectations for a late rally year in the European equity markets.
Goldman Sachs also said the outlook for US equities is “very uncertain”, with inflation, economic growth, interest rates, earnings and valuations changing and most investors believe a hard landing. is “inevitable”. The bank also noted that investor attention will shift from interest rate concerns to corporate earnings in the short term.
In terms of data, the initial value of the Markit manufacturing PMI in the US in September was 51.8, which was better than the market’s expectations of 51.1, and the previous value was 51.5. The initial PMI value was 49.3, which was better than the previous value of 44.6.
As of 9:00 pm on Friday (23) Taipei time:
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Fedex (FDX-USA) fell 2.19% to $ 151.16 per share at the start of the trade
FedEx (FedEx) announced Thursday that its revenue and profits in the last quarter were not as good as expected and also announced that the package shipping rate for most services will increase by 6.9% on average to January next year and will increase implement cost-saving measures this year, hoping to save money.The next $ 2.3 billion to $ 2.7 billion cost. The company’s Express, Ground and Home Delivery services will increase package rates by an average of 6.9%, and transportation services will see an average increase of 6.9% to 7.9%.
Boeing (BA-US) fell 2.39% to $ 135.39 per share at the start of the trade
Boeing will pay $ 200 million and then CEO Dennis Muilenburg $ 1 million as a settlement to alleged misleading investors after two 737 Max crashes, the United States Securities and Exchange Commission (SEC) said Thursday. Neither Boeing nor Muilenburg has admitted or denied its findings, the SEC said.
Qualcomm (QCOM-USA) fell 3.34% to $ 119.56 per share at the start of the trade
Qualcomm announced at its inaugural Automotive Investor Conference that thanks to the widespread adoption of Snapdragon digital chassis solutions in the automotive industry, the total order book for its automotive business has grown to $ 30 billion. This growth represents an expansion of more than $ 10 billion in Qualcomm’s total automotive order valuation since it posted its fiscal third quarter 2022 earnings.
The main economic data today:
- Starting September US Markit Manufacturing PMI was 51.8, predicted 51.1, previous value was 51.5
- The initial value of the September US Markit Services PMI was 49.2, expected to be 45, the previous value was 43.7
- The starting value of the US Markit Composite PMI for September was 49.3, the previous value was 44.6
Wall Street Analysis:
“There has been very little positive news right now and this sentiment could eventually trigger some level of selling … we are definitely close to near-term lows,” said Rick Meckler, partner at Cherry Lane Investments.
Chris Williamson, chief business economist at S&P Global, said: “As business conditions worsen and price pressures rise in relation to soaring energy costs,EURthe area may decrease. “Preliminary PMI data suggests the economy will contract 0.1% in the third quarter.”
Bank of America Securities strategist Michael Hartnett called the current bond crash “the third major bear market in bonds” and called the situation “extremely dire.” He said a collapse in bonds would threaten credit events and the settlement of global transactions, including those in US dollars, US technology stocks, private equity and more.
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