In the early morning of the 13th Beijing time, US stocks rose slightly in the afternoon on Wednesday. Fed minutes show that Fed officials believe it is necessary to take action to maintain restrictive policies. The U.S. producer price index in September rose by , indicating that inflation pressure is still high, and the Fed's battle to curb inflation will continue.
Dow Jones Industrial Average rose 136.23 points, or 0.47%, to 29375.42 points; Nasdaq rose 35.16 points, or 0.34%, to 10461.36 points; S&P 500 rose 8.96 points, or 0.25%, to 3597.80 points.
The Federal Reserve released the minutes of the last monetary policy meeting on Wednesday. Fed officials believe it is necessary to take action to maintain restrictive policies, minutes show. Federal Reserve officials favored the recent adoption of restrictive interest rates; several participants believed that it would be appropriate to slow down the pace of rate hikes at some point while evaluating the cumulative effect of policy adjustments; several participants said that risks would become more bidirectional as policies enter restrictive ranges.
minutes pointed out that many participants stressed that the cost of taking too little action to curb inflation outweighed the cost of taking too much action; many said that once the policy reached a sufficiently restrictive level, it would be appropriate to maintain that level for a period of time; and many participants raised their assessment of the federal funds rate path needed to achieve the committee's goals.
minutes believe that the U.S. unemployment rate may rise, which largely reflects the impact of tightening monetary policy.
Federal Chairman Powell has admitted that while aggressive rate hikes may be painful, the central bank will continue to do its best to curb inflation. Quincy Krosby, chief global strategist at
LPL Financial, said: "Powell repeatedly stressed that without price stability, we will not have a strong economy and job market. Investors are worried that restrictive monetary policy, that is, a tightening financial environment, may lead to liquidity exhaustion and cause greater harm to global economy ." Data released by the U.S. Bureau of Labor Statistics on Wednesday showed that although the Federal Reserve is trying hard to curb inflation, the U.S. producer price index rose more than expected in September.
Producer Price Index (PPI) is an indicator to measure the price of goods and services obtained by enterprises. In September, the US PPI rose 0.4% month-on-month, and the market is expected to increase by 0.2%. Compared with the same period last year, PPI in September increased by 8.5% year-on-year, a slight decrease from the year-on-year increase of 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.
Inflation has been the biggest problem in the U.S. economy in the past year, and the cost of living has approached its highest level in more than 40 years. As a response method, the Federal Reserve has raised interest rates five times so far this year, with a total rate hike of 3 percentage points. The market generally expects the Fed to raise interest rates for the fourth consecutive 0.75% rate at its meeting in three weeks.
But Wednesday's PPI data showed that the Fed still has a lot of work to do. In fact, Cleveland Fed Chairman Lorita Mester said on Tuesday that “the Fed has made no progress in inflation.”
Investors will usher in the highly-watched Consumer Price Index (CPI) data on Thursday. PPI measures the wholesale price of products and services obtained by producers, while CPI measures the price of consumer spending.
US stocks closed mixed on Tuesday, with the S&P 500 and Nasdaq closing down 0.65% and 1.1% respectively, both of which recorded their fifth consecutive trading day decline. The Dow Jones closed higher by 36 points, recording its first gain in five trading days.
On Tuesday, the Bank of England said its intervention in the market is about to end, and the pension fund has only three days to adjust the position . The Bank of England's speech, panic spread to major global financial markets.
Bank of England Governor Bailey warned British pension fund managers on Tuesday that the central bank would end emergency intervention in the UK bond market by Friday, and they must settle unsustainable positions by the weekend before the central bank stopped market support, triggering sharp drops in pound and U.S. stocks late Tuesday.
Mizuho Securities warns investors not to expect the Fed to take action to save the market. U.S. stocks are still hard.
Ruisui Securities' U.S. economist team of U.S. economists warned in Tuesday's client report that while the S&P 500 has fallen about 25% from its peak this year, there will be more pain for stock market bulls that adopt a "buy on dips" strategy.
Chief American economist Steven Ricchiuto and economist Alex Pelle believe that the idea of buying on dips now "ignors the essential difference between the post-epidemic era and the macro environment from 1990 to March 2020."
Focus stock
According to media reports, Twitter is reevaluating the controversial policy regarding permanent ban on users, which may make its content review more in line with Tesla CEO Musk's vision for the social media platform, whether or not the latter will become the owner of the platform. More than
people familiar with the matter revealed that Twitter has been evaluating whether there are other content review tools that can replace the most severe punishment of permanent ban on users. Twitter employees are reportedly studying areas where they believe users may be banned due to lighter violations, such as sharing misleading information. The report pointed out that any policy change is unlikely to pave the way for Trump's return to Twitter because the platform does not consider revoking the ban issued for violating its policy against incitement of violence.
PepsiCo Adjusted earnings and revenue per share in the third quarter were higher than expected, and the performance guidance for the 2022 fiscal year was increased. The company's third-quarter net revenue was $21.97 billion, with an estimated $20.81 billion, and its core earnings per share was $1.97, with an estimated $1.84 in the third-quarter.
Ruisui said that Rivian's recall of cars had little impact.
JP Morgan lowered Barclays target price to 180p .
news said that Moderna will jointly develop the cancer vaccine MRNA-4157/V940 with Merck .
Illumina and AstraZeneca carry out strategic research cooperation.
Philips expects comparable revenue to decline by 5% in the third and fourth quarters.
Nokia leads the construction of EU 6G project phase 2 will be launched next year.
Other markets, New York Mercantile Exchange's December gold futures closed down 0.5% at $1,677.50 per ounce.
