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On the last trading day of this week, the three major indexes of US stocks fell collectively. The Dow Jones Industrial Average fell 1.62%, the S&P index fell 1.72%, and the Nasdaq fell 1.80%, both of which recorded "four consecutive declines" on the daily line, and the Dow Jones Industrial Average hit a new low since November 2020.
Due to the hike rate in many countries around the world, the aggravation of economic recession expectations, international oil prices fell sharply, and the energy sector led the decline, Shell, ConocoPhillips , BP fell by more than 8%. Large technology stocks fell generally, Tesla fell 4.6%, and Amazon fell more than 3%. Popular Chinese stocks listed in the list also weakened, with Pinduoduo falling by more than 5%.
This week is the "super central bank weeks", and many countries around the world have significantly increased policy interest rates. Among them, the Swiss National Bank ended the 8-year negative interest rate after a sharp increase in interest rates; the Federal Reserve raised interest rates by 375 basis points, and has raised interest rates by 300 basis points this year, setting the most aggressive interest rate hike since 1990. The US dollar index and US Treasury bond yields have repeatedly hit stage highs.
The major U.S. stock index fell four times in a row
Dow Jones hit a new low in the past two years
Local time On September 23, local time, the three major U.S. stock indexes opened low and closed low, falling about 3% during the session, and the decline in at the end of the session narrowed. The Dow Jones Industrial Average fell 486.27 points, or 1.62%, to close at 29590.41 points; the S&P 500 index fell 1.72%, to close at 3693.23 points; the Nasdaq fell 1.80%, to close at 10867.93 points, and once fell more than 3% during the session.
Dow Jones fell by more than 800 points during the session, down nearly 20% from the high at the beginning of the year, and at the same time, it broke through the low in June, recording a new low since November 2020, and is "one step away" from the "bear market" range. Nasdaq html fell by more than 30% within 3 years, and the S&P 500 fell by more than 22%, and had entered a "bear market" earlier. Huali Street does not have an official definition of a bear market, but the market has the idea that a short-term loss of at least 20% is a bear market.
The major U.S. stock indexes have recorded a decline in five weeks in the past six weeks. The Dow fell 4% this week, with the S&P 500 and Nasdaq falling 4.65% and 5.07% respectively. In the past two weeks, the Nasdaq fell more than 10%, the S&P 500 fell 9.2%, and the Dow Jones fell nearly 8%. Goldman Sachs has previously lowered its S&P 500 index's year-end target from 4,300 points to 3,600 points.
On the market, large technology stocks fell across the board on Friday. Tesla fell 4.59%, Amazon fell more than 3%, TSMC fell 2.33%, Apple , Microsoft , Google , Facebook parent company Meta fell more than 1%.
International oil prices fell sharply, and once recorded a new low since the beginning of the year during the session, with the energy sector leading the decline. Apache Oil fell 11.43%, and Marathon Oil fell 10.94%, ranking first two places in the S&P 500 component . In addition, BP, ConocoPhillips and Shell fell by more than 8%, Chevron , Total, Norwegian Oil fell by more than 6%, and ExxonMobil and Occupy Oil fell by more than 5%.
As of the close of the day, the price of light crude oil futures delivered on the New York Mercantile Exchange fell $4.75 to close at $78.74 per barrel, a drop of 5.69%; the price of London Brent crude oil futures delivered in November fell $4.31 to close at $86.15 per barrel, a drop of 4.76%.
Popular Chinese stocks rose and fell, Nasdaq China Golden Dragon Index fell 2.03%. Ideal Auto rose 3.18%, and Ctrip rose 1.52%. Pinduoduo fell 5.37%, NIO fell nearly 4%, Shell , Alibaba , JD fell more than 2%, ZTO Express and NetEase fell nearly 1.8%, and Baidu fell 0.06%.
Super Central Bank Week ended
USD index hit a 20-year high
This Wednesday, Fed raised a sharp rate rate of 75 basis points, and hinted that there will still be a significant rate hike in the last two meetings this year. This is the third consecutive 75 basis points increase in interest rates by 75 basis points, and this year it has raised interest rates by 5 times totaling 300 basis points, and it is also the Fed's most radical monetary tightening action since 1990.
After the Federal Reserve raises interest rates, central banks around the world, including the United Kingdom, , Switzerland, , etc., followed up to raise interest rates, pushing this round of monetary asset tightening cycle to a climax. During this "super central bank week", central banks of Brazilian , Egypt and other countries kept the benchmark interest rate unchanged.The Bank of Japan has not raised interest rates, but Japanese Prime Minister Kishida Fumio said that the Japanese government will closely monitor market fluctuations with a "high sense of vigilance". Once the yen experiences "excessive flow" due to speculative activities, the government will intervene again if necessary.
Photo/Money countries' performance of this round of interest rate hike cycle. Chart/Zhou Pingxi
Russell Evans, chief investment officer of Avitas Wealth Management, said that the risk of recession has increased and no one wants to be the last person to "squeeze out of the door". Investors believe the Fed's performance this week is more "hawkish". There will be inevitable bad situations in the market and investors are accelerating their escape.
On the same day, the US dollar index, which measures the US dollar against six major currencies, rose 1.65%, closing at 113.1890 at the end of the foreign exchange market, hitting a 20-year high. The yield on the US Treasury bond rose sharply, with the 10-year Treasury bond once rising by more than 13 basis points to 3.829%, a new high since the first half of 2010; the yield on the 2-year Treasury bond rose by 7 basis points to above 4.2%, a new high since 2007, and has risen by more than 60 basis points in the past two weeks.
Quincy Krosby, chief global strategist at Lipple (LPL) Financial Group, believes that due to the rapid and clear impact of the Fed's aggressive interest rate hike, market sentiment has changed rapidly and clearly. Such a sharp rise in bond yields has not been seen for many years, changing the inherent view that the Federal Reserve will not break a certain balance while maintaining price stability, and the market is trying to clarify the global macroeconomic chaos. David Russell, vice president of market intelligence at the group
trading site (TradeStation), said that with the stable job market, the Federal Reserve tried to control inflation and tried to give up the expedient measures. "Previously, there were voices in the market saying that inflation may decline significantly, and the Federal Reserve quickly told them to shut up and do a good job in their position," Russell said.
map/Zhou Pingxi
review·The most
1. On September 21, the Federal Reserve raised interest rates for the third time in a row, and the five interest rate hikes this year totaled 300 basis points. This is the most radical monetary tightening action of the Federal Reserve since 1990.
2. On September 22, the Bank of England announced a 50 basis point rate hike, raising the interest rate to 2.25%. In August, the Bank of England also raised interest rates by 50 basis points, the bank's largest rate hike since 1995. Last year, the Bank of England was also one of the first central banks to raise interest rates in developed economies.
3. On September 22, the Swiss National Bank raised interest rates by 75 basis points, raising borrowing costs to above zero, ending the negative interest rate policy that lasted for up to 8 years. On June 16, the Swiss National Bank announced that it would raise its policy interest rate by 50 basis points to -0.25% in response to rising inflation levels, which is the first rate hike since September 2007.
4. On September 20, Swedish Central Bank announced that it would raise the benchmark interest rate by 100 basis points to 1.75%, which is the bank's largest interest rate hike since 1993.
5. On July 21, the European Central Bank announced a 50 basis point rate hike, which is the first time the bank has raised interest rates since 2011. With the European Central Bank and the Swiss Central Bank hikes further, all central banks in Europe have deviated from negative interest rates, marking the end of an era.
6. On July 13, the Bank of South Korea announced its first rate hike of 50 basis points, raising the benchmark interest rate from 1.75% to 2.25%. Since using interest rates as a major policy tool in 1999, the Bank of Korea has not raised interest rates by 50 basis points.
7. Since March 2021, the Brazilian Central Bank has raised interest rates for the 12th consecutive time. On September 21, the Brazilian Central Bank of Brazil announced that it would keep the benchmark interest rate at 13.75% unchanged, ending the longest rate hike cycle in the country's history.
Editor: Zhu Yumeng
Proofreading: Wang Jincheng
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