In the early morning of the 7th, Beijing time, US stocks till the end of the trading session, and the Dow Jones fell 400 points. U.S. Treasury yields have risen again, putting pressure on stock indexes. News of OPEC+'s sharp production cuts has exacerbated inflation concerns. The number of people applying for unemployment benefits in the United States for the first time last week was 219,000 higher than expected. The market is waiting for September non-farm employment data to be released on Friday.
Dow Jones fell 393.92 points, or 1.30%, to 29,879.95 points; Nasdaq fell 88.43 points, or 0.79%, to 11,060.21 points; S&P 500 fell 42.03 points, or 1.11%, to 3,741.25 points.
U.S. Treasury yields rose, and on Thursday morning, the U.S. 10-year Treasury yield rose 1 basis point to 3.773%. The yield on the 2-year Treasury bond, which is sensitive to interest rate outlook, rose 2 basis points to 4.14%.
Oil prices have continued to rise recently, which has aggravated inflation concerns. On Wednesday, the Organization of Petroleum Exporting Countries and its allies (OPEC+) decided to cut oil production by 2 million barrels per day from November, a cut of about 2% of global supply. After
OPEC+ announced a significant production cut, Goldman Sachs Group raised its target price for Brent crude oil to $110 per barrel in the fourth quarter.
Considering the inflationary pressure brought by rising oil prices, the market speculates that Fed will be forced to continue to maintain a tightening policy.
Feders have been trying hard to emphasize that market expectations for a rate cut next year are wrong. San Francisco Fed Chairman Daley and Atlanta Chairman Bostic warned the market on Wednesday that the threshold for the Federal Reserve to slow down the pace of aggressive rate hikes in is very high, and the central bank will likely continue the pace of 75 basis points per rate hike.
The market generally believes that Federal Reserve Chairman Powell will once again emphasize that cracking down on inflation is the core goal, and interest rate hikes may be raised before the end of the year. interest rate hike cycle will be extended to the first half of next year. The time and extent of interest rate hikes will exceed expectations, and interest rate cuts may not be cut until 2024.
Societe Generale strategist Kenneth Broux pointed out, "If you want to bet in front of the Fed, then you are playing a high-risk game. The Fed does not want the financial environment to relax now, and they do not want the stock market to rise sharply."
analysts said that market confidence is still very pessimistic now. If inflation can slowly cool down and economic data can remain neutral and strong, it is a positive signal.
US stocks started well this week, with three major stock indexes rising continuously on Monday and Tuesday. U.S. stocks closed slightly lower on Wednesday, with the Dow Jones Industrial Average closing down 0.14%, while the S&P 500 and the Nasdaq fell 0.2% and 0.25% respectively. Mark Hackett, head of investment research at
Nationwide, said: "Most people believe that the recent rise in U.S. stocks is just a bear market rebound. The persistence of the stock market rebound is also questioned. Whether it is corporate CEOs, small business owners, consumers or investors, everyone's confidence is generally fragile. But from the perspective of reverse investment, general pessimism is actually an optimistic signal. However, the swing of the stock market cycle is difficult to predict."
investors continue to pay attention to economic data to determine whether US inflation has cooled down and whether the Fed's interest rate hike policy is pushing the US economy into recession.
ADP employment data released on Wednesday showed that the number of private ADP employment in the United States increased by 208,000 in September, higher than the market estimate of 200,000. The ADP employment data is higher than market expectations, indicating that the private sector still has strong demand for labor and the Federal Reserve still has room for interest rate hikes.
September ISM non-manufacturing index, released on Wednesday, fell to 56.7.
On Thursday, the U.S. Department of Labor reported that the number of people applying for unemployment benefits in the United States for the first time last week was 219,000, the highest level since the end of August, ending a two-month downward trend. It is expected to be 203,000, and the previous value is 193,000.
The U.S. Department of Labor will release September non-farm employment data this Friday. Markets are worried that the data will not convince the Fed that the U.S. labor market has slowed.
focus stock
Ford Auto will raise the starting price of F-150 Lightning trucks again. Ford will raise the starting price of its all-electric trucks for the second time in recent months. The company said the new price tag for the 2023 F-150 Lightning Pro is $51,974. It is expected that this price increase will only affect the Pro models that are the most affordable configuration level.
Customers who have placed orders with Ford Motor will not be affected by this price increase. Ford raised the price of all models of F-150 Lightning trucks in early August, less than four months after the company began offering the pickup to dealers. At the time, the F-150 Lightning Pro was priced at $46,974.
According to people familiar with the matter, Musk's negotiations to reach an agreement with Twitter on a $44 billion acquisition are deadlocked, partly because Musk said that completing the deal depends on whether he can obtain $13 billion in debt financing. The original agreement did not include this unexpected condition.
news said that Musk wanted to lower the acquisition price by 30%, but was rejected by Twitter. Four people familiar with the matter said that before Tesla CEO Musk announced that he would continue to fulfill his $44 billion acquisition of Twitter, he tried to lower the acquisition price, but was rejected by Twitter.
These people said that in the weeks before the announcement of continuing to acquire Twitter, Musk's representatives had repeatedly approached Twitter, hoping to re-enter the acquisition at a lower price. Three of the people familiar with the matter said Musk initially asked for a discount of up to 30%, which means the acquisition price will drop to about $31 billion from its previous value of about $44 billion, but Twitter rejected the proposal.
In the past week, Musk narrowed the discount to about 10%, which is to acquire Twitter for $39.6 billion. But in the end, no progress was made between the two sides. As of Wednesday, Twitter's market capitalization was about $39.2 billion.
Airbus said Thursday that the aircraft service market will return to pre-pandemic levels by the end of 2023 and double its value in the next 20 years. But even as the pandemic restrictions are gradually lifted, supply restrictions, skilled labor shortages and economic uncertainty are affecting the recovery of short-term transportation.
Peloton announced another 500 employees. The CEO said that if the transformation fails, the company may not be able to survive independently.
market news said that Credit Suisse is considering splitting investment banking business to external investors.
Pinterest is optimistic about the user growth trend, and Goldman Sachs has raised its rating to "buy".
There is insider information that Vista Equity Partners is studying the privatization of a real estate company Compass.
Shell's refining profit margin fell sharply, natural gas trade profit fell, and the third-quarter performance was under pressure.
Morgan Sachs lowered its target price to $341, citing liquidity restrictions that have increased capital costs.
Jefferie lowers eBay target price from $52 to $42.
Other markets, November WTI crude oil futures closed up $0.69, and rose 0.78% to $88.45 per barrel.
COMEX December gold futures closed flat at $1720.80 per ounce.
