The major US indices plummeted last week. After the worst performance in 20 years in September, the fourth quarter started higher on Monday (3rd), but electric car leader Tesla delivered fewer vehicles in the last quarter than market expectations and its shares fell. By more than 7%, the stock’s decline also limited growth and tech stocks.NasdaqThe index goes up.
Before the deadline,Industrial average of the Dow Jonesincreased by more than 350 points or nearly 1.25%,Nasdaq Composite Indexincreased by nearly 90 points or nearly 0.9%,S&P 500 Indexincreased by almost 1.1%,Semiconductor of PhiladelphiaThe index was up nearly 2%.
Global markets remain nervous about the economic impact of monetary tightening after central banks like the US Federal Reserve reasserted their resolve to contain runaway inflation. Traders have cut back bets on the Fed to raise interest rates, believing the federal funds rate will peak in March next year, and are also waiting for the September non-farm payroll data released on Friday (7) to find information on the economy and the rise of the Fed. clues to the information path.
British government policy took a major turn by canceling the tax cut plan for high-income workers. Chancellor Kwasi Kwarteng tweeted that he “did not proceed” with the removal of the 45% higher income tax rate, saying it had become a “distraction” after the news.GBPAgainst the dollar, it rose 1% short-term and the gain fell 0.67% before printing to $ 1.1235.
Another spotlight was Credit Suisse, the most speculated institution after Wall Street reported a major bank was on the verge of bankruptcy. Since the beginning of this year, hit by a series of bad news, the stock has fallen 60% this year.
Shares of Credit Suisse hit historic lows last week and the credit default swap index (CDS) rose about 15% to its highest level since 2009, raising concerns for the bank’s financial health.
In energy terms, international oil prices were impacted by news that the Organization of the Petroleum Exporting Countries and its partners (OPEC +) could announce a daily production cut of more than 1 million barrels this week. Texas inbound November was trading above $ 83 a barrel. , while the nov.Brent crudeFutures have moved closer to $ 90 a barrel, also fueling further inflation concerns.
Starting Monday 9:00 pm (3rd) Taipei time:
Featured titles:
Tesla (TSLA-USA) fell 7.13% to $ 246.34 per share at the start of the trade
Tesla, a leading US electric car maker, shipped 343,830 vehicles worldwide last quarter, breaking a record but remaining below analysts’ expectations. Tesla warned that there are still challenges in vehicle delivery, showing that supply chain chaos is still a big deal. Tesla shares fell more than 4% on pre-market trading news.
Credit Suisse (CS-USA) fell 4.34% to $ 3.75 per share at the start of the trade
Credit Suisse credit default swap (CDS) spreads shot up on Friday, after top executives reassured major clients, traders and investors over the weekend about the safety of the bank’s liquidity and funding position, in response to concerns market on the financial strength of Credit Suisse.
CDS is a commodity derivative contract for investors to avoid credit risk. The prevalence of CDS has skyrocketed, highlighting investors are concerned about Credit Suisse’s financial situation.
Robin Hood (HOOD-US) fell 2.78% to $ 9.82 per share at the start of the trade
Robinhood Markets announced the closure of five more offices as part of a restructuring plan in August. But as Robinhood closes several offices, its renovation costs will rise to a range of $ 90 million to $ 150 million, from a previous estimate of $ 45 million to $ 60 million.
The main economic data today:
- The final value of the US Markit manufacturing PMI in September was 52, it was expected to be 51.8 and the previous value was 51.5
- US September ISM Manufacturing Index reported 50.9, expected 52.2, and previous value of 52.8
Wall Street Analysis:
Colin Asher, a senior economist at London’s Mizuho Bank, said the Fed is aggressively attempting to tighten financial conditions and a weak stock market was one way to do it, with inflation still high and central banks fearing to let go.
–
