*U.S. stock fell across the board, Nasdaq continued to hit a new low in two years;
*U.S. PPI slightly exceeded expectations in September;
*PPI;
*Pepsi Cola raised its annual revenue growth expectations.
US stocks closed slightly lower on Wednesday, with PPI slightly exceeding expectations in September. The minutes of the Federal Reserve meeting showed that inflation pressure is still high, and the market is waiting for the latest inflation data. As of the close, the Dow Jones Industrial Average fell 28.34 points, or 0.10%, to 29,210.85 points, the Nasdaq fell 0.09%, to 10,417.10 points, and the S&P 500 fell 0.33%, to 3,577.03 points.
Federal officials are expected to continue Rate hikes
Data released by the U.S. Bureau of Labor Statistics showed that the U.S. producer price index PPI rose 0.4% month-on-month in September, higher than market expectations of 0.2%. Compared with the same period last year, PPI increased by 8.5% in September, a slight decrease from 8.7% in August. Excluding the prices of food, energy and trade services, the core PPI in September rose 0.4% month-on-month and 5.6% year-on-year.
On Thursday local time, the United States will release the September consumer price index CPI, and the data will affect the Federal Reserve's assessment of November policy choices. Currently, the institution expects that last month, CPI will increase by 8.3% year-on-year, and core CPI, which removes energy and food, will increase 6.5%. "The rise in productive goods and services should not be surprising, and there is no doubt that the Fed still has work to do. If the latest CPI reading is high, then seeing some investors start seriously considering how long it may be to ease inflation." Fed minutes show that officials at the meeting are expected to continue hike rates and stay at restrictive levels until inflation shows signs of cooling. Many participants stressed that the cost of taking too little action to curb inflation is relatively higher. Quincy Krosby, chief global strategist at
LPL Financial, believes that Fed officials in recent speeches show that they support the Fed's commitment to cut inflation and stick to the end. "There is a market view now that the Fed's radical short-term stance will continue. The key question is where the transition from 75 basis points to 50 basis points and 25 basis points. I think that's the focus of the market." Steven Ricchiuto, chief American economist at Ruisui Securities, warned in the report that although the S&P 500 has fallen about 25% from this year's peak, there will be more pain for stock market bulls who adopt the "buy on dips" strategy, because this idea ignores the essential difference between the post-epidemic era and the macro environment between 1990 and March 2020.
Pepsi raised its annual revenue growth forecast
In the market, Pepsi rose 4.2%, the company's third-level revenue was US$21.97 billion, a year-on-year increase of 8.8%, higher than analysts' expectations of US$20.84 billion, and net profit was US$2.7 billion, compared with US$2.22 billion in the same period last year. The company expects organic revenue growth to increase from 10% to 12% in 2022.
Intel rose 1.1%, and it was reported that Intel plans to announce cost cuts this month, which may include large-scale layoffs, and the proportion of certain departments may reach 20%, such as the marketing and sales departments.
US Aluminum rose 5.3%. The Biden administration is considering restricting Russian aluminum imports, people familiar with the matter said.
Star technology stocks are rising and falling, Amazon rises 0.6%, Google rises 0.3%, Microsoft rises 0.2%, Apple falls 0.5%, and Facebook parent company Meta falls 0.8%.
Nasdaq Golden Dragon China Index rose 0.2%, Alibaba rose 0.5%, Pinduoduo rose 0.4%, JD rose 0.3%, and NetEase and Baidu fell more than 1%.
International oil prices fell, after OPEC html's March report lowered its annual demand growth expectations. WTI crude oil contract fell 2.33% to $87.27 per barrel, while Brent crude oil contract fell 1.95% to $92.45 per barrel. OPEC expects that the global crude oil demand growth rate in 2022 is expected to be 2.64 million barrels per day, before 3.1 million barrels per day; the global crude oil demand growth rate in 2023 is expected to be 2.34 million barrels per day, before 2.7 million barrels per day.
international gold price fell slightly, and the price of COMEX gold futures for December delivery on the New York Mercantile Exchange fell $8.50, or 0.5%, closing at $1,677.50 per ounce.
