* risk preference recovered, and the three major stock indexes rose by nearly 2%;
* U.S. bond yield surged and fell, and 10-year U.S. bond treasury fell by nearly 30 basis points at a high level;
*International oil prices rose by more than 4%, and Hurricane "Ian" had an impact on Gulf of Mexico production.
U.S. stocks rebounded sharply on Wednesday. The Bank of England announced the purchase of British Treasury bonds to stabilize the market, triggering a widespread rebound in the sovereign bond market. U.S. bond yields fell at a high level, alleviating people's concerns about higher interest rates impacting the economy. As of the close, the Dow Jones Industrial Average rose 548.75 points, and rose 1.88% to 29,683.74 points, ending six consecutive negative points; the Nasdaq rose 2.05% to 11,051.64 points; the S&P 500 index rose 1.97% to 3,719.04 points. The Panic Index VIX fell 7.4% to 30.18.
BoC enters the turning point
Amid the tough remarks of Feder officials, the benchmark US 10-year Treasury bond yield hit 4.01%, the highest level in more than 12 years, and drove the USD index to continue to rise. The Bank of England then entered the market as a turning point, and the bank announced that it would launch a temporary plan to purchase long-term government bonds, starting today until October 14, to purchase long-term UK Treasury bonds on "any necessary scale" to stabilize the plunging pound exchange rate , and to postpone the sale of Treasury bonds.
Affected by this, the global market risk appetite quickly reversed, European stocks gradually recovered their intraday losses, the US dollar index fell by nearly 1%, non-US currencies rebounded collectively, the euro/dollar stood above the 0.97 mark, and the pound/dollar approached 1.08%. "In the past few weeks, the two-year Treasury yields have continued to rise, and the short-term decline adjustment has given stocks a respite," said Art Hogan, chief market strategist at B.Riley Wealth. "Medium- and long-term U.S. Treasury yields are currently approaching the target level the Fed expects, which is 4%-4.5%. So, once this happens, we should see that U.S. Treasury will start to stabilize, which will push up future stock prices."
Indeed, many Wall Street people are still worried that investors have not yet absorbed the impact of slowing profits and the Fed's interest rate hike. "Our core view is that the pressure on tightening U.S. financial conditions are unlikely to end until the economy enters a significant recession or inflation continues to grow." Anastasia Amoroso, chief investment strategist at iCapital, believes that stock market pricing has not yet reflected the outcome of a global recession. This does require an extremely low valuation of stock , but it has not been done yet.
Apple fell against the trend
Star Tech stocks rise more than the rise, Amazon rises 3.1%, Google rises 2.7%, Microsoft rises 2.0%, Apple falls 1.3%, and plunges nearly 4% during the session. It is reported that the company withdraws its plan to increase production of iPhone 14 this year because of slowdown in demand. Apple now expects that the sales of iPhone in the second half of this year will remain at around 90 million units, roughly the same as the sales in 2021. "Apple has so many products, any weakness in Apple's demand will have a huge impact on many areas, even chip, processing and retail outlook," said Patrick Armstrong, chief investment officer of Plurimi Wealth. "Wedbush Securities 2 analyst Daniel Ives insists on Apple's optimism, believing investors may see Wednesday's decline as an opportunity to buy at a low price.
Chinese stocks listed in performed well, Nasdaq Golden Dragon China Index closed up 1.4%, New Oriental rose 4.5%, Alibaba rose 4.0%, Pinduoduo rose 3.3%, Baidu rose 1.8%, and JD rose 0.5%. In terms of
stocks, Biogen rose nearly 40%, after the company announced the positive results of its phase 3 clinical trial of its experimental Alzheimer's disease drug lecanemab. The share price of , which also develops Alzheimer's disease drug, rose 7.5%.
Home Debao rose by more than 5%, and demand for building materials is expected to be boosted as Hurricane Ian lands in Florida .
U.S. oil futures climbed on Wednesday, with oil prices falling to more than $80 a barrel, close to its highest point in a week. WTI crude oil contract rose 4.65% to $82.15 per barrel, and Brent crude oil contract rose 3.54% to $89.32 per barrel.
The price of gold futures for December delivery on the New York Mercantile Exchange rose $33.80, or 2.1%, to close at $1,670 per ounce, the highest closing price since September 22 .
Federal officials continue to be tough
The market continues to pay attention to the statements of Fed officials. Atlanta Fed Chairman Raphael Bostic said Wednesday that the lack of significant progress in inflation means the Fed needs to "moderately limit" interest rates and should reach levels between 4.25% and 4.50% by the end of this year. " inflation is still high...and has not yet fallen back to our 2% target at a sufficient rate." He added that the Fed is expected to raise 375 basis points at its policy meeting in November and 50 basis points at its December meeting.
In terms of economic data, the US commodity trade deficit in August was at US$87.4 billion, falling for five consecutive months and hit a new low since April last year, reflecting the decrease in import demand and the negative impact of the strong US dollar on sales of US-made products. The decline in the trade deficit and the increase in inventory will increase GDP (GDP). The market expects GDP to grow in the third quarter after two consecutive declines.
The National Association of Realtors said Wednesday that existing home sales fell 2% month-on-month to 88.4 as rising mortgage rates suppressed demand. This is the lowest level since April 2020. "The rise or fall of mortgage interest rates is the driving force for buying a home, and the high interest rates over the past decade have seriously affected the signing of contracts," said Lawrence Yun, chief economist at NAR. "If mortgage interest rates are moderate and the economy continues to increase employment, then buying a home should also stabilize."
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-