In the early morning of the 24th, Beijing time, US stocks closed sharply on Friday. The S&P 500 basically gave up all the gains this summer, close to its lowest level this year. Investors are worried that the Fed's further tightening of monetary policy to combat inflation will put the U.S. economy in recession. The US dollar continued to appreciate significantly against other currencies. Goldman Sachs significantly lowered its S&P index's year-end target.
Dow Jones fell 486.27 points, or 1.62%, to 29,590.41 points; Nasdaq fell 198.88 points, or 1.80%, to 10,867.93 points; the S&P 500 fell 64.75 points, or 1.72%, to 3,693.24 points.
This week, the Dow Jones Industrial Average fell 4.06%, the S&P 500 fell 4.64%, and the Nasdaq fell 5.07%. The S&P 500 basically gave up the rebound gains obtained this summer, and the bear market has been further confirmed.
Goldman Sachs said on Friday that the Federal Reserve's federal funds rate will be higher than previous expectations, which will put pressure on U.S. stock market valuation. The bank lowered its S&P 500 year-end target from 4,300 points to 3,600 points.
Goldman Sachs strategist led by David Kostin said that given that most stock investors have accepted the inevitable view of a hard landing in the U.S. economy, the higher interest rate scenario now adopted by the company's valuation model supports a 15x price-to-earnings ratio (as compared to 18x previous forecast).
Goldman Sachs expects the S&P 500 3, 6 and 12 months targets to be 3400 points, 3150 points and 3750 points respectively.
Goldman Sachs strategists recommend that the increase in uncertainty supports defensive positions, and investors should hold stocks with high-quality attributes such as strong balance sheets, high return on capital and stable sales growth.
Bank of America said that the bull and bear indicators of US stocks have returned to the maximum bearish level, indicating that it is the most pessimistic period of investor sentiment since the global financial crisis.
Crude oil futures fell sharply on Friday, with US WTI crude oil falling below the $80 mark, hitting a new low since January this year.
USD continues to rise against other major currencies. The euro fell below 0.98 against the dollar, the lowest level since 2002. The pound fell to its lowest level in 37 years.
UBS Global Wealth Management strategists said it is too early to buy the euro at the bottom. They lowered their forecasts for the pound and said the Japanese government's intervention is unlikely to stop the dollar-yen upward trend.
The government led by British Prime Minister Trass has formulated the most radical tax cut since 1972, reducing taxes on workers’ wages and businesses to increase the long-term potential of the economy.
The UK Institute of Finance (IFS) believes that the UK government's plan to boost growth is an economic gamble that will put UK debt on an "unsustainable" path, which will increase public debt by £100 billion a year. The combination of increased spending and tax cuts advocated by Tras will lead to a swell of national debt.
IFS warned that the UK's tax cuts were the largest since 1972. The tax cuts in 1972 ended in a disastrous result.
market is still digesting the Fed's decision to raise interest rates by 75 basis points for the third consecutive day on Thursday. On the same day, the Federal Reserve also released an interest rate path map that suggests that it will continue to aggressive interest rate hikes in the future. In addition, many overseas central banks also announced interest rate hikes on Thursday.
Steve Englander, head of global G10 currency research at Standard Chartered Bank, had previously predicted that the U.S. labor market will now show signs of a slowdown. Standard Chartered Bank currently predicts that the Fed will raise interest rates for the fourth consecutive time in November and further raise interest rates by 50 basis points in December.
He said: "As economic activity has not responded too much to the tightening measures, the Fed is not ready to estimate how high interest rates it needs to achieve the inflation results it wants. Once unemployment starts to rise, such estimates will become more feasible. But until then, it will be difficult to make a reliable estimate of how high interest rates it needs."
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FedEx's first-quarter results were lower than expected, with parcel volume falling for three consecutive quarters, planning to raise freight prices by 6.9%, and detailed specific measures for its cost-cutting measures.
Key American baseball events are coming, and Apple (AAPL.US) Apple TV+ ushers in a big test. Apple TV+ has exclusive playback rights to the Boston Red Sox vs. New York Yankees this Friday.This game is a major test for Apple's commitment to becoming a sports live broadcast service provider, and it is also a major test for whether well-known games can increase Apple's number of users or serve other business goals.
Sai FTSE co-CEO said it will continue to make acquisitions. Saifud said the company has acquired 60 companies and will continue to make acquisitions, while focusing more on integrating the companies that have been acquired. Meanwhile, Safty is still integrating employees from companies such as Tableau, which has recently acquired. As the economic outlook worsens, Safty’s goal is to increase profit margins.
rumor Credit Suisse is seeking investors' intention to increase capital and plans to completely reform its investment banking business. Credit Suisse is seeking capital increase intentions from investors, the bank's fourth contact with investors in nearly seven years, according to two people familiar with the matter. Sources said Credit Suisse has not made any decisions and has not disclosed how much money the bank will seek to raise.
Boeing paid $200 million to settle the SEC's allegations related to the 737 MAX crash. The Securities and Exchange Commission (SEC) has previously accused Boeing of comments made by the United States after its Boeing 737 MAX crash allegedly misleading investors.
SEC said Thursday that Boeing will pay $200 million to settle allegations of misleading investors after two fatal crashes on Boeing 737 MAX aircraft. Two 737 MAX crashes in 2018 and 2019 killed all 346 people on board, causing the 737 MAX to be grounded worldwide. Two years ago, the 737 MAX returned to flight for the first time.
Due to the decline in crude oil futures prices, oil stocks generally fell.
Snow Lake becomes a key battery material supplier for LG Energy Solutions.
rumored that multiple potential buyers are considering acquiring Cano Health.
Other markets, the German DAX30 index fell 1.98% on Friday, the UK FTSE 100 index fell 2.01%, the French CAC40 index fell 2.28%, and the European Stoke 50 index fell 2.3%.
Gold futures for December delivery on the New York Mercantile Exchange fell $25.50, or 1.5%, to close at $1,655.60 per ounce. Calculated by the most active contract, gold futures prices fell by 1.7% this week.
WT Intermediate (WTI) futures for November delivery fell $4.75, or 5.7%, to close at $78.74 per barrel.
