On the evening of the 28th, Beijing time, US stocks opened on Wednesday hrefles and fluctuations. Analysts are worried that investors have not yet absorbed the impact of slowing earnings and the impact of the Fed's aggressive rate hike. After the Bank of England announced the launch of a temporary plan to buy long-term bonds, the US pound-US exchange rate and surged and fell, and the yield on the US 10-year Treasury bond once exceeded 4%.
Dow Jones Industrial Average rose 106.30 points, or 0.36%, to 29,241.29 points; Nasdaq fell 13.20 points, or 0.12%, to 10,816.30 points; S&P 500 rose 8.29 points, or 0.23%, to 3,655.58 points.
Apple shares fell after media quoted people familiar with the matter as saying that the tech company is abandoning plans to increase production of new iPhones due to lower demand than expected.
Bank on Wednesday said it would launch a temporary plan to buy long-term government bonds, starting today until October 14, to buy long-term UK Treasury bonds on "any necessary scale" to stabilize the plunging pound exchange rate and postpone the sale of Treasury bonds.
Bank of England stated: "From September 28, Central Bank will temporarily purchase long-term UK government bonds. The purpose of these purchases will be to restore an orderly market environment."
Bank also stated that it will maintain its goal of reducing its holdings of 838 billion pounds (892 billion US dollars) next year, but due to market conditions, the reduction action originally scheduled to start next week will be postponed.
After the Bank of England conducted bond purchase operations, the pound rebounded briefly against the US dollar. The pound-US exchange rate once rose to 1.0840 in the short term, and then fell back and hit a daily low, falling to 1.0621 at the lowest level, with an amplitude of more than 200 points, and is still falling by about 0.6%.
Vanda Research analysts said that the pound failed to hold on to the gains after the Bank of England said it would temporarily buy long-term UK bonds, showing that the central bank still faces huge challenges. The Bank of England is currently playing against the market and has not reached a stable equilibrium. This means they may need to do more, which may include an emergency rate hike.
After the Bank of England issued an announcement, the 10-year U.S. Treasury yield gave up its initial gain and is currently maintaining around 3.93%. Previously, the benchmark interest rate of once exceeded 4%, the first time since 2008.
US stocks closed mixed on Tuesday, with the Dow Jones Industrial Average and the S&P 500 both hitting new closing lows since 2022 and recording a sixth consecutive trading day decline. The S&P 500 fell to 3623.29 points intraday, hitting a new bear market low. The Nasdaq closed slightly higher.
More than tech indicators show that the U.S. stock market may be oversold, but many people on Wall Street are worried that investors have not yet absorbed the impact of slowing profits and the Fed rate hike. S&P 500 fell below its previous low, and this key indicator shows that some stocks still have room for further decline. "I think the stock market pricing has not yet reflected the result of a global recession. We do need to value stocks at a very low valuation, but we haven't done that yet," said Anastasia Amoroso, chief investment strategist at
iCapital. "The volume of the U.S. put option contract on Friday hit a record trading volume with 33.93 million turnovers." Some investors speculate that this situation indicates that the market may be close to a reversal. But Barclays derivatives strategist Stefano Pascale refuted the view on Tuesday, saying U.S. stocks have not bottomed out yet.
He pointed out: "Contrary to common belief, stock investors are not in a hurry to make protective buying. Unlike previous market lows in June, they are more patient to avoid hasty selling and hedging positions, which shows that they expect the worst is not yet here."
According to an analysis by Barclays, the sell-off of put options in ETF options reached a four-year record, suggesting that the market has not yet entered its most pessimistic time.
JPMorgan fund manager Arjun Vij said that given the highest yields since 2010, the longer-term sovereign bond in most developed markets is starting to look attractive.
He believes that the market expects inflation to ease in the coming years, making these securities attractive.
The founder and CEO of Dual-Tier Capital, known as the "New Debt King", and Steven Wieting, chief investment strategist of Citi Global Wealth, both bet on government bonds. They believe that the global economy will eventually collapse under the heavy pressure of a sharp interest rate hike.
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rumor Apple canceled the iPhone 14 series production increase plan. According to media citing people familiar with the matter on Wednesday, as expectations of rising demand for the iPhone 14 series failed to come true, Apple has notified suppliers to cancel the original 6 million production increase plan in the second half of the year, and maintain production capacity at the same level last year.
Biogen's stock price has risen sharply, and its new Alzheimer drug has been proven to improve cognitive decline. After the close of Tuesday, Eisai and , Bojian, announced that the new drug Lecanemab, developed by the two companies, has effectively slowed down cognitive decline in the third phase of clinical trials. For early patients, the cognitive decline rate within 18 months of administration was 27% slowed down compared with the control group, achieving the main experimental goals. Lyft, an online ride-hailing platform, announced that it will freeze recruitment by the end of this year, after the company only stated that it would "significantly reduce" recruitment for the purpose of reducing costs.
American biopharmaceutical company Ocugen announced on Wednesday that the company reached an agreement with the University of Washington to develop, manufacture and commercialize nasal spray vaccines.
Asma Chief Technology Officer Martin van den Brink said in an interview with the media that the company is preparing for the delivery of the first High-NA EUV lithography machine, which will be completed at some point next year. In addition, he also believes that the current lithography technology may come to an end.
Credit Suisse, Barclays HSBC Holdings and other bank stocks fell generally. The Securities and Exchange Commission issued a sky-high fine of $1.8 billion to 16 Wall Street investment banks.
Sanofi is expected to boost third-quarter performance.
