Hot nonfarm payroll data immediately sparked market panic and quelled market hopes that the Federal Reserve would slow the pace of interest rate hikes. The major US equity index fell after the opening bell in On Friday (7th), AMD and Samsung’s preliminary third-quarter financial reports warned and the White House extends China’s chip technology export restrictions, semiconductor stocks have become the hardest hit.
The four major indices closed in the blood,Dow JonesThe S&P fell 2.8% after plunging more than 630 points.that fingerprecipitated by more than 3%,half shareBleeding greater than 6%. Although US stocks plunged on Friday,Dow JonesStill up 2% for the week, while the S&P gained 1.5% for the week,that fingerIt barely increased by 0.7% for the week.
The latest non-farm payrolls report became one of the biggest negative news for US equities on Friday. The number of new jobs in September was 263,000, exceeding market expectations of 250,000. The previous value was 315,000 and the unemployment rate increased from 3.7% in August, furthermore, the average annual wage growth rate fell slightly to 5% from the previous value of 5.2% and the market was expecting that was 5.1%, while the average monthly wage increase rate remained unchanged at 0.3% and the work participation rate also remained at around 62%.
Stronger-than-expected data has led to widespread belief that the Federal Reserve will raise rates again in November, with traders in the CME’s FedWatch tool expecting a three-yard rate hike next month from around 60% to 60%. , 80%.
In terms of politics and economics, the Biden administration announced on Friday new restrictions on China’s export of chip technology, expanding restrictions on China’s ability to acquire US technology to develop a new generation of weapons or artificial intelligence (AI). In addition, 31 Chinese companies also, including Yangtze River Storage, be placed on the “Unverified List”.
The Biden administration also unveiled a new national strategy for the Arctic on Friday, seeking to curb Chinese and Russian influence in the region and build a “peaceful, stable, prosperous and cooperative” Arctic area.
US President Joe Biden signed an executive order on Friday implementing a new framework to protect the privacy of personal data shared between the US and Europe.
EU heads of state on Friday discussed ways to limit natural gas prices in hopes of alleviating an energy crisis, with the blockade expected to finalize the plans at a summit in Belgium on October 20-21.
The global epidemic of novel coronary pneumonia (COVID-19) continues to spread. Before the deadline, data from Johns Hopkins University in the United States showed that the number of confirmed cases worldwide exceeded 620 million and the number of deaths exceeded 6.55 million. More than 12.7 billion doses of the vaccine have been administered in 184 countries around the world.
The World Health Organization (WHO) and countries are closely monitoring the new variant strains of Omicron. WHO officials recently said that Omicron BA.2.75, BF.7 and BA.4.6 and other variants are accelerating the global outbreak.
The performance of the four major US equity indices on Friday (7):
- US stocksDow JonesIt fell 630.15 points, or 2.11%, to finish at 29,296.79 points.
- NasdaqThe index tumbled 420.91 points, or 3.8 percent, to finish at 10,652.41.
- S&P 500 IndexIt fell 104.86 points, or 2.8 percent, to finish at 3,639.66.
- Semiconductor of PhiladelphiaThe metrorrhagia index at 152.1 points, equal to 6.06%, closed at 2,356.7 points.
Focus your actions
The five kings of science and technology were wiped out. apple (AAPL-USA) fell by 3.67%; Half (META-US)) fell by 4.04%; Alphabet (GOOGL-US) fell by 2.70%; Amazon (AMZN-USA) fell by 4.77%; Microsoft (MSFT-USA) fell 5.09%.
Dow JonesThe constituent titles were essentially weak. Intel (INTC-USA) fell by 5.37%; Walgreens United Boots (WBA-USA) fell by 5.36%; Nike (UNITED STATES) fell by 3.34%; Salesforce (CRM-USA) fell by 3.33%; Merck (MRK-US) increased by 0.18%.
half shareThe constituent stocks were refrigerated. AMD (AMD-USA) fell by 13.87%; NVIDIA (NVDA-USA) fell by 8.03%; the materials applied (AMAT-USA) fell by 6.26%; Qualcomm (QCOM-USA) fell by 3.49%; Texas Instruments (TXN-USA) fell by 4.36%; Micron (MU-USA) fell by 2.93%.
Collective collapse of Taiwan’s ADR. TSMC ADR (TSM-USA) down by 6.19%; ASE ADR (ASX-USA) down 4.41%; UMC ADR (UMC-USA) fell by 5.24%; Chunghwa Telecom ADR (CHT US) fell by 0.75%.
Company news
US semiconductor giant AMD announced Thursday after the market that its third quarter revenues were much lower than expected, warning that the current situation in the personal computer (PC) market is more severe than expected. AMD (AMD-USA) plunged 13.87% to $ 58.44 per share on Friday, the worst daily performance since March 2020, and stocks in semiconductors like Intel tumbled.
Credit Suisse ADR (CS-USA) bucked the trend and rose 13.19% to $ 4.85 per share.Credit Suisse Group (Credit Suisse), which recently reported a financial crisis, announced that Credit Suisse International (Credit Suisse International) will pay approximately 3 billionSwiss franc (fromTaiwan dollar 95.6 billion) in cash to repurchase some senior debt securities of the operating company.
The U.S. court suspends the case between Musk and Twitter until October 28, giving Musk three weeks to complete the original $ 44 billion acquisition deal, Twitter (TWTR-USA) fell another 0.43 percent to $ 49.18 per share on Friday. Tesla (TSLA-USA) fell 6.32% to $ 223.07 per share.
Pepsi (PEP-USA) closed 0.73% lower at $ 161.61 per share with the broader market. PepsiCo confirmed Friday that it will begin receiving deliveries of Tesla’s electric trailer on December 1, becoming the first company to receive an order for the long-delayed electric vehicle.
Economic data
- US non-farm payrolls reported 263,000 in September, 250,000 expected and 315,000 previously
- The US unemployment rate in September was 3.5%, expected to be 3.7%, the previous value of 3.7%
- The average weekly working time in the United States in September was 34.5 hours, 34.5 hours expected, and the previous value was 34.5 hours
- The average hourly wage growth rate in the US in September was brought back to 5%, expected to be 5.1%, the previous value of 5.2%
- US September average hourly wage growth rate was 0.3%, expected to be 0.3%, previous value of 0.3%
- The participation rate of the US workforce in September was 62.3%, expected at 62.4% and the previous value of 62.4%
- The final monthly growth rate of US wholesale inventories in August was 1.3%, expected at 1.3% and the previous value of 0.6%
Wall Street Analysis
Win Thin, head of global currency strategy at Brown Brothers Harriman, judged on the basis of nonfarm payroll data: “The Fed will raise interest rates by 3 yards in November.
“The Nonfarm Payroll Report laments the market going a long way for US equities to the downside,” said David Donabedian, chief investment officer of CIBC Private Wealth.
“Friday’s nonfarm payroll report was aggressive,” said Principal Global Investors strategist Seema Shah. “With the Fed’s dot plot showing interest rates rising from 4% to nearly 5% next year, there is only one way for risk assets to go. It will only go deeper.”
The data is updated before the deadline, please refer to the actual quotation.
