In the early morning of the 30th, Beijing time, US stocks continued to decline on Thursday afternoon, with Apple falling more than 4%. The Bank of England's emergency rescue operation has gradually disappeared, and risk aversion has returned. Investors remain focused on the Fed's radical policy stance and are concerned that it could cause the U.S. economy to decline rapidly. The U.S. GDP shrank by 0.6% in the second quarter, indicating an economic recession.
Dow Jones Industrial Average fell 354.59 points, or 1.19%, to 29329.15 points; Nasdaq fell 279.89 points, or 2.53%, to 10771.75 points; S&P 500 fell 64.46 points, or 1.73%, to 3654.58 points.
US stock markets rose generally on Wednesday, with the Dow Jones Industrial Average and the S&P 500 both ending the previous six consecutive trading days of decline. On the same day, Bank of England said it would purchase bonds to help stabilize the financial market and stop the pound from plummeting, boosting market confidence. In recent days, the pound has fallen to a record low against the dollar.
But the measures taken by the Bank of England have gradually dissipated.
Former Bank of England Governor Carney accused the British government of "weaking" its own economic institutions and said the decline in pound and bonds should be attributed to the UK government's fiscal plans.
Citigroup Asia Pacific Marketing Director Julia Raiskin said. "There are no trading of many assets except the US dollar, and the market is very pessimistic. Investors mostly choose to wait and see." Huw Roberts, head of analysis at Quant Insight, an analysis research company at
, said: "The main drivers at present are inflation, and the tightening monetary policy adopted by major central banks to fight inflation."
Piper Sandler Co. "UK Treasury yields may temporarily ease some upward pressure based on reflections from the U.S. and other global Treasury yields, but in the long run, they will continue to be driven by a sharp hike in the central bank's rate hike in . "There are some people who believe that the calm sentiment in the market on Wednesday marks the end of a period of rising volatility or risk aversion in the near future, but we doubt it. For a more sustained rebound in the stock market, investors need to see compelling evidence that inflation is under control, making the central bank less hawkish."
Wednesday's UBS analyst Mark Haefele said, "There are people who think that the calm sentiment in the market mark the end of a period of rising volatility or risk aversion in the near future, but we doubt that. For a more sustained rebound in the stock market, investors need to see compelling evidence that inflation is under control, making the central bank less hawkish."
U.S. stocks rose on Wednesday, putting major stock indexes on the horizon this week. But in September, the Nasdaq had fallen by about 6.5%, while the Dow and S&P 500 fell by 5.8% and 5.9% respectively.
The Dow may record its first consecutive weekly decline since the third quarter of 2015. The S&P 500 may record its third consecutive quarter decline since the first quarter of 2009.
The market is still concerned about the Federal Reserve's monetary policy. Fed officials continued to highlight the tough prospects of the Fed, with Atlanta Fed Chairman Bostic saying he supports another 1.25 percentage points hike by the end of this year.
In his speech to reporters in London on Wednesday, Evans, a Fed policymaker, did not suggest that any recent drama would deviate from the Fed from its rate hike plan.
Evans said, "We really need to control inflation ," he supported raising the Fed's interest rate from the current 3%-3.25% range to the 4.5%-4.75% range by the end of this year or next March.
economic data, the U.S. Department of Labor reported that the number of initial unemployment claims for the week ending September 24 was 193,000, expected to be 215,000, and the previous value was 213,000.
Another data from the Department of Labor showed that the final value of the annualized quarterly rate of the US real GDP in the second quarter shrank by 0.6%, expected -0.60%, and the previous value -0.60%. Revised data shows that the US real GDP contraction rate in the second quarter of 2022 was slightly slower than the initial value, but it contracted for the second consecutive quarter and the economy fell into a technical recession.
Focus stocks
Tesla 2022 AI Day will be held on October 1, Beijing time. At that time, the robot Tesla Bot is expected to make its debut. Musk said on social media today that there will be many technical details and cool hardware demonstrations at "Tesla AI Day".
According to media reports, supply chain manufacturers have not received any notification from Apple for order adjustments to the iPhone 14 series. The total number of orders has remained unchanged, but the iPhone 14 Pro series has more points.After the launch of Apple's iPhone 14 series, media recently reported that due to lower demand than expected, Apple's will give up its plan to increase production of the iPhone 14 series this year.
Bank of America analyst Wamsi Mohan lowered Apple's rating from buy to neutral in a report Thursday. Mohan stressed that although Apple's stock price has been better than the market this year, this situation poses greater risks in the coming year, and it is expected that as consumer demand weakens, the company's financial data may experience substantial negative results.
TSMC's stock price fell. UBS said that TSMC's 7nm process is facing pressure from a demand recession. The capacity utilization rate in the first half of next year is only about 70%, and the overall capacity utilization rate in the first half of next year may fall between 85% and 89%, which is more than 90% lower than the previous expectations.
India reportedly plans to increase economic incentives for manufacturers of tablets and laptops in its own country, aiming to attract technology companies such as Apple and Dell to enhance India's position as a production base globally. According to a government document seen by the media, the Federal Ministry of Technology of India has submitted the revised plan to electronics industry executives for consultation, which includes providing up to 4,500 crore rupees (about 549 million US dollars) to each company.
Buffett 's Berkshire Hathaway company filed with SEC2 on Wednesday, showing that the company purchased 5.98519 million shares of Occidental Petroleum shares, increasing its shareholding ratio to 20.9%. Berkshire said in the filing that the acquisitions were conducted between September 26 and September 28, and totaled about $352 million.
Bilibili announced on the Hong Kong Stock Exchange on Thursday that the company's voluntary conversion of its second-listing status on the Stock Exchange to its main listing will take effect on October 3, 2022, when the company will become a company that is mainly listed on the Stock Exchange and Nasdaq , and the stock mark "S" will be deleted from its stock abbreviation on the effective date.
media quoted people familiar with the matter on Thursday as saying that in the context of the investment business facing market headwinds, SoftBank Group is expected to lay off 30% of its employees, and the company also told these affected employees starting Thursday.
In addition, Wells Fargo analyst Jeff Cantwell overwrites Coinbase for the first time on Thursday and gave a "reduced holding" rating. Analysts say the company's first-mover advantage is being eroded as competitors begin to mimic their ecosystem.
Other markets, European stocks closed down on Thursday, with German DAX30 index falling 1.7%, UK FTSE 100 index falling 1.77%, French CAC40 index falling 1.53%, and European Stoke 50 index falling 1.67%.
