The US job market is strong, igniting expectations of the Federal Reserve hike rate hiccup. US stock hiccup. US stock hiccup. Last night, the three major indexes fell sharply. The third-quarter performance forecast released by AMD was lower than market expectations, resulting in a "chip panic" resurgence and chip stocks fell sharply.
US stocks fell sharply
US stocks opened low on Friday, and all three major indexes fell sharply. As of the close, Dow Jones Index fell 2.11%, S&P 500 Index fell 2.80%, and Nasdaq Index fell 3.80%. The
sector fell across the board, the information technology/technology sector closed down 4.14% to lead the decline, and the optional consumer sector fell more than 3.5%; the energy sector remained firm, with a decline of only 0.7%.
technology stocks all fell, Apple fell 3.67%, Microsoft fell 5.09%, Google fell 2.61%, Amazon fell 4.77%, Tesla fell 6.32%, and Meta fell 4.04%.
Chinese stocks listed in the United States fell, while TSMC, Alibaba , NIO , JD , Pinduoduo, Ideal Auto, Baidu , Xiaopeng Motors and other popular stocks all fell.
news, the number of non-farm employment in the United States increased by 263,000 in September, higher than the estimated value of 255,000. The U.S. unemployment rate in September was 3.5%, with an estimate of 3.7%, and the previous value was 3.7%. The average hourly wage of American workers increased by 0.3% month-on-month, the same as expected; it increased by 5.0% year-on-year, slightly lower than the expected 5.1%.
9 employment data is also the last employment report before the policy meeting of Federal 111 policy, and the strength of the job market has made investors worried that the Fed will further raise interest rates.
Previously, Beth Ann Bovino, chief economist of the global rating of Standard and Poor's , said that if the average hourly wage growth in the United States reaches 5.1%, it means that the pressure on wage increases is still high, and higher wage data will only strengthen the Fed's radical stance.
Federal Funds Rate shows that the probability of the Federal Reserve hike by 75 basis points in November is 92%, higher than the 85.5% before the September non-farm employment report was released.
In addition to the US stock market, the European market sentiment is also more pessimistic, but the overall decline is small. As of the close, the UK FTSE 100 index fell 0.09%, French CAC40 index fell 1.17%, and German DAX30 index closed down 1.59%.
"Shared Panic" has risen again
US chip stocks fell collectively on Friday, and Philadelphia Semiconductor Index closed down more than 6%. AMD fell 13.87%. As of press time, the company's total market value was approximately RMB 670 billion. Nvidia fell 8.03%, and Intel fell 5.37%.
AMD announced preliminary financial results for the third quarter, with revenue expected to be approximately US$5.6 billion in this quarter, although a year-on-year increase of 29%, but a 15% month-on-month decline, and far less than the company and the market's previous expectations of US$6.7 billion. AMD said the decline in revenue was because "the PC market was weaker than expected, and major inventory correction actions for the entire PC supply chain."
major banks intensively lowered AMD's target price. KeyBanc lowered AMD's target price from $130 to $100; Mizuho lowered AMD's target price from $125 to $102; Raymond James lowered AMD's target price from $130 to $100; Piper Sandler lowered AMD's target price from $140 to $90. The latest price of AMD is only US$58.44 per share.
Although Bank of America Securities analyst Vivek Arya lowered AMD's target price, he still maintained the buy rating of the stock . It noted that AMD did not update its outlook for the fourth quarter, but model sales will continue to decline quarter by quarter due to weak customer segments, and he expects the trend to remain sluggish.
Goldman Sachs lowered AMD's target price from $88 to $84, and said it lowered its forward-looking estimates for AMD and Intel. While AMD's customer segment revenue has significantly shrunk (-53% quarter-on-quarter in Q3 2022) may facilitate further discussion on normalization of PC demand, a constructive view on the stock remains.
Ruisui Bank lowered AMD target price from $125 to $102. They believe AMD has pre-reported its September results with revenue and gross margins of $5.6 billion and 50%, respectively, far below previous guidance. As the PC/server market weakens, AMD is even weaker than people are worried about.
Editor: Peng Bo
Proofreading: Wang Jincheng
