On the evening of the 2nd Beijing time, US stock on Friday opened lower . The number of non-farm employment and wage growth in the United States in November exceeded expectations, indicating that inflationary pressure is high in the future. Fed still needs to continue to curb inflation, and may cumulatively raise interest rates by another 2,100 basis points in the future.
Dow Jones fell 129.56 points, or 0.38%, to 34,265.45 points; Nasdaq fell 173.91 points, or 1.51%, to 11,308.54 points; S&P 500 fell 47.89 points, or 1.17%, to 4,028.68 points.
On Friday, the U.S. Department of Labor released the November non-farm employment report that attracted much attention from the market.
data shows that the number of non-farm employment in the United States increased by 263,000 in November, and the data in October was revised to 284,000. Due to the decline in labor force participation, the unemployment rate remained unchanged at 3.7%, in line with market expectations.
11 average hourly wage rose at 5.1%, higher than expected 4.6% and the previous value of 4.7%. The average hourly wage data for October was also revised upward.
The median forecast for economists surveyed was the median forecast of non-farm employment increased by 200,000 in November, and the unemployment rate remained at 3.7%.
Non-farm employment report shows that U.S. employers added more new employees in November than expected, and wage growth was higher than the previous month, indicating that labor demand is still too strong for the Fed, which is working to curb inflation.
agency analysis pointed out that the previous new non-agricultural employment data was raised, and the labor participation rate of fell to 62.1%, once again indicating that labor supply is tight. That's exactly what the Fed is worried about - tight labor supply and the subsequent wage pressure. Therefore, the market response of US bond rising yields and falling stock prices seems completely appropriate.
Analyst pointed out that the number of jobs in the United States increased more than expected in November, and wage growth accelerated compared with last month, suggesting that the employment market is still very strong and the Federal Reserve still needs to take measures to continue to curb inflation.
According to the "Federal Observation" tool of the Chicago Mercantile Exchange, the market predicts that the Fed's interest rate hike by 50 basis points in December and raises the benchmark interest rate range to the 4.25%-4.50% range of 77%. The probability of raising interest rates by 75 basis points is 23%. The probability of a cumulative interest rate hike of 75 basis points by February next year is 54.5%, the probability of a cumulative interest rate hike of 100 basis points is 38.8%, and the probability of a cumulative interest rate hike of 125 basis points is 6.7%.
These predictions are roughly equivalent to those before the data was released.
The Fed may be confident that it will start slowing down the pace of rate hikes this month due to growing concerns about the recession.
The Federal Reserve will hold a two-day monetary policy meeting on December 13-14. The market expects central bank to raise the federal funds benchmark interest rate by 50 basis points at this meeting. The 50 basis points rate hike means that the pace of the Fed's interest rate hike has slowed down compared to the previous 75-point rate hikes.
In a speech delivered on Wednesday, Fed Chairman Jerome Powell seemed to confirm market speculation that the Fed policy may slow. Powell pointed out that the Fed may slow down the pace of rate hikes as early as December. After Powell's speech, the Dow Jones closed higher than 700 points that day.
Powell also admitted in his speech on Wednesday that the ongoing labor supply shortage throughout 2021 is unlikely to be completely resolved in the short term.
The Federal Reserve has raised interest rates by 375 basis points this year, reaching the range of 3.75%-4.00%, which is the fastest increase in interest rate since the 1980s.
Federal Director Bowman said on Thursday, "I expect the Fed to continue hikes in the next meeting, and we still have a lot of work to do. But we should slow down the pace of rate hikes, which will allow us to more fully evaluate the impact of our actions."
Oanda market analyst Craig Erlam said: "Given the data we have seen since the last Fed's monetary policy meeting, I think it will take some really shocking things to get the Fed to change its policy route now."
Other markets
Other markets
According to media reports on Friday, Apple is stepping up its research and development of a mixed reality (MR) headset, another new product category of the company since the Apple Watch (Apple Watch) product, which is expected to be released next year.According to people familiar with the matter, the company plans to launch the headset as early as next year, along with a dedicated operating system and a third-party software application store. It is understood that the company recently changed the name of this specialized operating system from "realityOS" to "xrOS".
Tesla delivered its first batch of all-electric Semi trucks to Pepsi (PepsiCo) on Thursday, marking the company's official expansion into areas outside the passenger car market after a long delay. On December 2, Tesla held a Semi electric truck delivery ceremony at the Nevada Gigafactory to commemorate this historic moment. Musk said at the event that the battery-powered truck will effectively reduce highway carbon emissions and outperform existing diesel models in terms of power and safety. "If you are a truck driver and you want the coolest truck to go on the road, it's it," Musk said.
French oil giant Total became the first major operator in the North Sea to cut investment due to the British government's huge energy profit tax. It is understood that Total is withdrawing about £100 million worth of North Sea investment and is expected to cancel plans to drill additional wells in the Elgin Gas Field, accounting for 25% of its previous investment. Total is the second largest energy operator in the North Sea region of the UK, and its North Sea oilfield drilling project is huge, but Total now says it will revisit its plans due to taxation.
Credit Suisse Chairman Axel Lehman said on Friday that the company is seeking to speed up the cost-cutting plan announced a few weeks ago as client capital outflows and slower business activity put pressure on its revenue outlook. Lehman said in an interview with the media that we are cutting costs, and the market is not good for us now, but in fact the entire industry is currently under pressure. The good news is that the capital outflow has basically stopped.
American clinical stage biopharmaceutical company Anavex Life Sciences released a clinical trial report on Alzheimer's disease therapy on Thursday. According to the announcement, Anavex's oral drug Anavex2-73 achieved the primary endpoint and a critical secondary endpoint in a 2b/3 clinical trial for Alzheimer's disease . The therapy is safe overall and (the subject exhibits) well tolerated.
Blackstone REITs (Real Estate Investment Trusts, Real Estate Investment Trust ) restricted investors from withdrawing investment after encountering a large number of redemption requests.
AMC Cinema stock price hit the 200 daily moving average , and the market bought a large number of call options.
Mywell Technology's third-quarter net revenue and fourth-quarter revenue outlook were lower than expected.
Cosmos Holdings has been increased by by shareholder .
Charge Point's third-quarter revenue and 2023 revenue guidance were lower than expected.
Rigel Pharmaceuticals' stock price rose sharply. The FDA approved Rezlidhia for the treatment of acute myeloid leukemia.
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