In the early morning of the 22nd Beijing time, US stocks turned up late on Wednesday. The Federal Reserve raised interest rates by 275 basis points and lowered its economic growth forecast. The inversion of the yields of 2-year and 10-year U.S. Treasury bonds has expanded to 50 basis points.
Dow Jones Industrial Average rose 103.61 points, or 0.34%, to 30,809.84 points; Nasdaq rose 100.73 points, or 0.88%, to 11,525.78 points; S&P 500 rose 23.21 points, or 0.60%, to 3,879.14 points.
Federal announced the rate hike of , the yield on the US 2-year Treasury bond exceeded 4%, which inverted with the 10-year Treasury bond yield reached 50 basis points.
At 2:00 p.m. Eastern Time on Wednesday, the Federal Reserve announced its resolution to the September monetary policy meeting, announcing the third consecutive rate hike of 75 basis points. The Federal Reserve FOMC statement said that the median forecast value shows that the federal funds rate will be 4.4% by the end of 2022.
Federal Chairman Powell will hold a press conference. Previously, the market expected the institution to announce a rate hike of at least 75 basis points to curb the surge in inflation.
The Fed reiterated that it is expected that the ongoing rate hike is appropriate and the committee is highly concerned about inflation risks.
Federal FOMC lowered economic expectations: the median expected growth rate of GDP will be 0.2%, 1.2%, and 1.7% respectively at the end of 2022, 2023 and 2024. (June expectations were 1.7%, 1.7%, and 1.9%, respectively), and the median expected GDP growth rate at the end of 2025 is 1.8%.
The chart in the Federal Reserve's economic expectations shows that most of the FOMC participants believe that real GDP growth faces high uncertainty and risk tends to decline. A Fed official expects U.S. GDP to shrink in 2023.
analysts believe that the Fed's dot chart is hawkish. The Fed signaled that the final interest rate was 4.6%, and the market quickly repriced the interest rate. Importantly, the Fed also hinted that it will raise interest rates by 125 basis points this year, with the market expected to raise interest rates by 75 basis points in November and 50 basis points in December.
The Federal Reserve's economic expectations show that there will be at least another 75 basis points rate hike in 2022.
Traders expect the possibility of the Fed raising another 75 basis points at its November meeting at 89%.
Federal Chairman Powell said at a subsequent press conference that he firmly promised to lower U.S. inflation to 2%. The Fed has many policy tools to restore price stability. Although the growth rate of (US economy) slows down, the labor market (supply and demand relationship) is quite tight. The job market continues to lack a balance between supply and demand. FOMC believes that the job market is regaining the supply and demand balance.
The currency market price has completely digested the expectation of a third consecutive rate hike of 75 basis points. U.S. inflation data released last week crushed speculation that cost pressure has peaked.
The recently released U.S. Consumer Price Index (CPI) reading for August was higher than expected, and hawkish remarks from Fed leaders about rate hikes have put pressure on U.S. stocks.
But as the Federal Reserve continues to take tough measures to fight inflation, U.S. stocks may face greater pressure in the future. Financial reports of companies such as
Lennar, KB Homes and Steelcase will also be released on Wednesday.
Economic data, the total number of existing home sales in the United States in August increased by 4.8 million, a new low since May 2020. It is expected to be 4.7 million households, with the previous value of 4.81 million households.
U.S. real-time home sales slowed for the seventh consecutive month in August as sharp rises in mortgage interest rates and rising housing prices reduced the cost of buying. According to the National Association of Realtors, sales in the four major U.S. regions vary month-on-month, with two of them growing, one remaining unchanged and the other falling. However, from a year-on-year perspective, sales in all regions showed a decline.
focus stocks
Intel , Ultramicro Warning: The current PC market situation worsened further than the expected lows of previous financial report. The two companies admitted that the current PC market situation worsened further than the expected lows of previous financial reports, and Super Micro said that the current PC market was "chaotic" and worsened about 15% more than the original financial report forecast. Intel and Super Micro's global personal computer CPU market share exceeds 90%, which is an absolute leading indicator for mastering the development of the industry.
Market research institution Strategy Analyticshtml released a report on the 221st forecast that Bluetooth TWS headphones will grow in 2022 and 2023. Apple continues to lead, but due to inflation , people are turning to cheaper devices, and Apple 's Bluetooth TWS headphones market share is shrinking.
The U.S. federal government is issuing millions of doses of Moderna booster vaccines, after the U.S. Food and Drug Administration (FDA) postponed the issuance of these vaccines due to the need for safety inspections at a packaging factory in Indiana.
Korean Hyundai Heavy Industry Group announced that the group has signed a contract with the US software service provider Palantir to introduce Palantir's enterprise big data platform "Foundry" into all subsidiaries in the shipbuilding field, including South Korea Shipbuilding and Ocean, Hyundai Heavy Industry, Hyundai Sanhu Heavy Industry, Hyundai Opo Shipbuilding and other companies. This move is intended to build a digital future shipbuilding strategy (FOS). Hyundai Heavy Industry Group is promoting the FOS project with the goal of transforming into an intelligent shipyard by 2030.
Vietnam electric car maker VinFast hopes to hold an initial public offering (IPO) in the United States at a "some time in 2023." David Mansfield, the company's chief financial officer, made the statement at a briefing held at the company's factory in Hai Pang, Vietnam. Mansfield added that market conditions in 2022 do not provide “good opportunities” for IPOs.
Honda's parts company H-ONE recently announced that it will establish a subsidiary in China to manufacture and sell pure electric vehicle (EV) parts. The company will deliver body frame parts and other parts to its main customer, Honda, to its new pure electric vehicle factory. It also plans to become a supplier to local pure electric vehicle companies in China.
In order to expand the European electric vehicle market, NIO will promote battery rental and replacement services. Currently, NIO is looking for the corresponding asset management company in Europe to promote this business. NIO said that through battery replacement service, users can get a full battery within minutes, saving time-consuming charging time.
Muxin Technology released its second quarter financial report for 2022. According to the financial report, the company's current net income was 2.234 billion yuan, down 12.10% year-on-year compared with 2.541 billion yuan last year; under the US recognized accounting standards , the company's current net profit was 442 million yuan, down 46.43% year-on-year; under non-US general accounting standards, net profit was 635 million yuan, down 2.62% year-on-year; the current gross profit margin was 43.8%, down 1.3 percentage points year-on-year.
October Petroleum, ExxonMobil and other oil stocks rose generally.
Vodafone has attracted attention. French Telecom tycoon has purchased 2.5% of its shares.
Tellurian, which fell about 24% yesterday, fell sharply again. The company announced that it will withdraw the issuance of its preferred secured bonds due to uncertainty in the high-yield bond market.
Deutsche Bank lowered its target price and rating for Western Digital.
Total plans to invest billions of dollars in the Qatar natural gas project.
Swiss officially purchased 36 F-35A fighter jets from Lockheed Martin.
Stich Fix's fourth-quarter profit turned into losses, and sales will continue to decline in the future.
Micron Technology 's fourth-quarter revenue expectation was pessimistic, and institutions said that the downward cycle of DRAM market began.
DWAC renegotiates a $1 billion financing agreement with acquisition supporters.
ContextLogic shareholders sold 1.2922 million shares of the company.
It is reported that cryptocurrency exchange FTX has emphasized today that it has established an exclusive partnership with GameStop and will introduce its customer base into the digital asset ecosystem. GameStop will become the preferred retail gaming partner for FTX US companies.
Other markets, gold futures for December delivery on the New York Mercantile Exchange closed up 0.3% to $1,675.70 per ounce.
