Reporter of the Economic Business: Zheng Yuhang Reporter of the Economic Business Business: Gao Han
On November 17th local time (Thursday), the three major indexes of US stocks closed down, and bond yields soared. Federal officials hinted that rate hikes that continue to fight inflation are far from over, warning that the economy will face more pain in the future.
Dow Jones Industrial Average fell 7.51 points to 33546.32 points, a drop of 0.02%, and once fell 314 points during the session; S&P 500 fell 0.31% to 3946.56 points; Nasdaq Composite Index fell 0.35% to 11144.96 points.
Image source: Yingwei Finance
Large technology stocks most fell, Netflix (NFLX, stock price 295.28, market value of 131.406 billion US dollars) fell 3.51%; Amazon (AMZN, stock price of 94.85 US dollars, market value of 967.626 billion US dollars; Amazon (AMZN, stock price of 94.85 US dollars, market value of 967.626 billion US dollars Yuan), Tesla (TSLA, stock price of US$183.17, market value of US$573.958 billion) fell more than 2%; Meta (META, stock price of US$111.45, market value of US$295.515 billion) fell nearly 1.6%, falling for two consecutive days to its lows since November 9; NVDA (NVDA, stock price of US$156,77, market value of US$390.357 billion) fell more than 1%.
Most of the U.S. stock industry ETFs closed down, with the Internet Stock Index ETF falling 1.92%, the U.S. ETF falling 1.75%, the regional bank ETF falling 1.48%, the banking ETF falling 1.38%, and the optional consumer ETF falling 1.21%. The energy industry ETF still performed relatively strongly, closing up 0.22%, the technology industry ETF rose 0.16%, and the global technology stock ETF rose slightly by 0.08%.
CNBC commented that the decline in U.S. stock markets was due to investors weighing the comments of St. Louis Fed Chairman Brad, known as the "eagle king", and said in a speech on Thursday that "policy interest rate is not in the area considered sufficient to limit inflation. Interest rates need to rise to at least about 5%, while stricter assumptions suggest interest rates above 7%. "
" Rate hikes seem to have limited impact on inflation, so the Fed still needs further rate hikes to achieve its goal of calming inflation. But market pricing indicates that deflation is expected to occur in 2023," Brad warned that financial markets will face further pressure in the future.
After Brad's speech, the 10-year U.S. bond yield hit a new high, rebounding by more than 10 basis points from the low of more than a month set earlier in the day. The 2-year U.S. Treasury yield, which is relatively sensitive to policy interest rates, jumped to around 4.483, a week-long high, with an intraday increase of more than 10 basis points, and the 10-year U.S. Treasury yield continued to be at its biggest inversion in 40 years, raising investors' concerns that interest rate hikes will put U.S. economy into recession.
Image source: YCharts
Just the day before Brad's speech, San Francisco Fed Chairman Daley also said that there is no possibility that the Federal Reserve will suspend interest rate hikes at present. Minneapolis Fed Chairman Kashkali also echoed their hawkish argument Thursday afternoon.
And Kansas City Fed Chairman George also told the Wall Street Journal on Wednesday that he does not know how to reduce inflation without an economic slowdown, and it is necessary to use economic contraction to achieve the goal of reducing inflation.
《Daily Economic News》 reporters noticed that Chris Senick of Wolfe Research said in a research report on Thursday that the recent Fed's remarks have supported their research results that the end rate of the Federal Reserve's current round of interest rate hikes may be as high as 6%.
In addition, Mark Haefele, chief investment officer of UBS Global Wealth Management, also wrote in a report that the impact of further currency tightening and the continued interest rate hike this year shows that the risk of a U.S. recession remains high.
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
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