The US employment market is strong, triggering expectations of Fed rate hike , US stock staged a "Black Friday" last night, and the three major indexes collectively fell sharply, achieving the largest daily decline in more than three weeks, US bond and US dollar yields increased. The third-quarter performance forecast released by AMD was lower than market expectations, resulting in a "chip panic" resurgence, chip stocks were in a state of collapse, and chip giant AMD closed down 14%, the largest daily decline since March 2020.
futures market crude oil price on achieved five consecutive increases. This week, WTI crude oil rose by 16.5%, setting the largest weekly increase in 7 months!
The United States once again staged a "double kill of stocks and bonds"
East time on October 7 (Friday), the three major U.S. stock indexes opened low and closed low, and Last trading hit a new daily low. As of the close, Dow Jones Index fell 2.11%, S&P 500 Index fell 2.80%, and Nasdaq Index fell 3.80%.
Dow component stocks , Intel fell 5.37%, Walgreens United Bozi fell 5.36%, leading the Dow.
S&P 500 major sectors collapsed for the first time this week, with the IT sector falling more than 4.1% leading the decline, the consumer discretionary sector falling more than 3.5%, and other sectors falling at least more than 1%. After the non-agricultural report was released, the 2-year U.S. Treasury yield rose by nearly 9 basis points during the day, approaching a fifteen-year high. The dollar index quickly turned rising and hit a new high in more than a week.
9 employment data is also the last employment report before the policy meeting of the Federal Reserve on November 2, and the strength of the employment market has made investors worried that the Federal Reserve will further raise interest rates.
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.
chip stocks collapsed
US chip stocks fell collectively on Friday, and Philadelphia Semiconductor Index closed down more than 6%. AMD closed down nearly 14% the day after its third-quarter performance report was expected to release.
After the market yesterday, AMD announced its initial financial results for the third quarter. AMD's third-quarter revenue is expected to be approximately US$5.6 billion (about 39.8 billion yuan), and increased by 29% year-on-year. But this result is far lower than previous expectations, and AMD previously stated that revenue is expected to grow by about 55% year-on-year in Q3.
AMD's reasons for the decline in performance are: " macroeconomic shrinkage has led to lower sales in the traditional PC consumer market, and accompanied by a large supply chain inventory, so overall the market is not very enthusiastic about installation, resulting in a significant reduction in processor shipments."
Ruisui Bank lowered AMD's target price from US$125 to US$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.
Bank stocks fell across the board
Many banks may face a loss of $500 million
Bank stocks fell across the board, Morgan Stanley fell 2.93%, Bank of America fell 2.26%, Citi fell 2.02%, JP Morgan Chase fell 2.00%, Goldman Sachs fell 1.18%, Wells Fargo fell 1.07%.
Futuniu reported that bank groups led by Morgan Stanley may face a loss of $500 million due to Musk's acquisition of Twitter . They agreed in April to provide debt financing support to Musk for the merger case. At that time, Morgan Stanleys, Bank of America, Barclays, Mitsubishi Tokyo UFE Bank and others promised to provide $13 billion in debt financing for major customers and the world's richest man Musk's acquisition of Twitter.
According to multiple media reports, several largest banks in the United States will begin to release their third-quarter financial reports next Friday. As market turmoil curbs investment banking activities, banks allocate more emergency funds to make up for the losses caused by borrowers' default repayments. The market expects bank net profit to decline this quarter.
crude oil price rose five times
cumulative increase this week exceeded 16%
international crude oil futures continued to rise after the opening of the US stock market, and crude oil closed for five consecutive trading days for the first time since June 3.
WTI November crude oil futures closed up 4.74% to US$92.64/barrel, a new closing high since August 29; Brent 2 December crude oil futures closed up 2.7% to US$97.92/barrel, a new high since August 30. This week, US oil rose 16.5%, and Bergail rose 15%, making it the first double-digit single-week rise in double-digit surge since it rose more than 20% in a week on March 4.
According to the most active contract, WTI crude oil has risen by 16.5% this week.
New York City, USA, announced that it had entered a
state of emergency to deal with the immigration crisis
According to CCTV News, on the 7th local time, New York City Mayor Eric Adams, announced that the city had entered a state of emergency to help deal with the immigration crisis in New York City.
Adams said on October 7: "Immigrants arriving in New York City have exceeded the number of people we can accommodate immediately." Adams said that once asylum seekers who came to New York by bus from Texas are placed properly, the city's asylum system will be able to accommodate the highest number of people on record.
Adams called on federal and state governments to provide assistance, and he estimated that the immigration crisis in New York would cost about $1 billion this fiscal year.
According to statistics from New York City Hall , more than 15,000 immigrants have arrived in New York City since May this year. According to recent reports from the US media, as New York City's shelter centers used to receive immigrants are already full, New York City Mayor Adams is considering using cruise ships to accommodate immigrants. It is understood that Adams plans to dock the cruise ship that resettled to immigrants at , Manhattan, , south of , but local officials in Staten Island do not support the plan. Republican officials in New York City criticized the plan as "ridiculous" and "incompetent".
This spring, Texas Governor Abbott and Arizona Governor Ducey successively launched "carrying people" operations, using buses to transport Latin American immigrants to cities where Democrats ruled by Democrats, such as Washington, and New York, to show opposition to the federal government's immigration policy. As the November midterm election approaches, the struggle between the two parties in the United States becomes increasingly fierce, and immigration policy once again becomes a focus of firepower for the Republicans to attack the Democratic Party.
According to CNN (CNN) on October 6 local time, the police in Hidalgo County, Texas, USA said on the same day that 84 undocumented immigrants were found on a semi-trailer in Weslaco, about 8 miles (about 12.9 kilometers) north of the U.S.-Mexico border.
It is reported that the police received a report from a resident that there may be an smuggling of in the local area. Police found the illegal immigrants while investigating the incident. The incident is under further investigation.
◆Source: China Fund News, Futures Daily, CCTV News
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