Reporter of the Economic Business: Wen Qiao Reporter of the Economic Business Business: Gao Han
On November 18, local time, it was repeatedly hit by speeches by Federal Reserve officials and turned to hope US stocks rebounded hard.
On Friday, the three major U.S. stock indexes collectively opened higher than , but after Fed officials recently said that it might raise interest rates again 75 basis points, the increase in narrowed. As of the close of US stocks that day, the Dow Jones Industrial Average closed up 199.37 points, or 0.59%, to 33,745.69 points. S&P closed up 0.48% to 3965.34 points, temporarily leaving the closing low since November 9, which was set on Thursday. The Nasdaq closed up 0.01% at 11,146.06 points, close to the closing low since November 10, which was set on Thursday.
Image source: Futuniu Niu screenshot
On the same day, Boston Fed Chairman Collins said that the recent data has not changed her view on rate hikes, and the Federal Reserve may still raise interest rates by another 75 basis points. "Our goal of hikes is to slow economic growth at the expense of slowing economic growth in exchange for a balance between demand and supply in the labor market."
Affected by this, Treasury yields further rose. The 2-year U.S. bond yield, which is sensitive to the prospect of interest rate, hits a week-long high in the session, and the benchmark 10-year U.S. bond yield refreshes the worst inversion in 40 years, releasing a recession signal. As of press time, the 2-year U.S. Treasury yield was 4.5308%, and the 10-year U.S. Treasury yield was 3.829%.
Image source: Yingwei Financial Information
Two weeks ago, Collins said that the Federal Reserve's monetary policy is entering a "new stage" and requires a smaller rate hike to find a balance between controlling inflation and avoiding the economic crisis . Until last weekend, Collins warned that the risk of excessive tightening of monetary policy had increased, making the market think that she belonged to the "dove-dove-like" faction.
Last week, slowing inflation pushed US stocks to a sharp rise, and S&P 500 index achieved its best performance since the summer last week. But in recent days, Fed officials including Daly, Brad, Kashkali and Collins have "changed their faces", releasing hawkish arguments and putting pressure on the market.
This week, major U.S. stock indexes all fell cumulatively, far inferior to the sharp rise last week. Specifically, the Nasdaq index, which rose more than 8% last week, fell 1.57% this week; the S&P, which rose 5.9% last week, fell 0.69% this week; the Dow Jones index, which rose more than 4% last week, fell 0.01% this week.
In addition, it is worth noting that on Friday, international oil prices continued to fall sharply during the session. WTI crude oil fell below US$80 for the first time since September, a drop of more than 5%. As of the close of US stocks on the day, WTI December crude oil futures closed down $1.56, down 1.91%, at $80.08 per barrel. Brent 1 crude oil futures closed down $2.16, down 2.40%, at $87.62 per barrel.
Affected by the decline in crude oil, the energy sector of the S&P 500 closed down 0.9% (once fell more than 2% in the early trading), dragging down the market . On the same day, only two of the S&P 500 major sectors closed down, and except for the energy sector, Communications Services closed down nearly 0.4%.
However, Jeff Currie, head of Goldman Sachs global commodity , said this week that in the future, in addition to the European imposing a offshore crude oil ban on Russia, which may lead to a decline in supply and an upward trend in oil prices, factors such as the slowdown in US shale oil production and the U.S. stop releasing strategic oil reserves will all exacerbate pressure on oil prices.
Disclaimer: The content and data of this article are for reference only and do not constitute investment advice. Verify before use. Operations based on this are at your own risk.
Daily Economic News
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-