The Dow hit a new low in recent two months, and the Nasdaq, which rose more than 3 per cent in intraday trading, closed slightly higher. S & P hit a three-month low in a row, only IT and the financial sector closed higher, Microsoft Corp and Tesla, Inc. closed up more than 2 per cent, Tesla, Inc. fell 6 per cent after the day's earnings, and Nai Frisbee rose more than 6 per cent. Pan-European stocks posted their biggest gain in seven weeks, while oil and gas stocks rose 4%. The yield on 10-year US bonds rose above 1.8% for the first time in the last four days. The two-year yield reached the biggest daily rise in nearly two years; the dollar index hit an one-month high. Crude oil hit a seven-year high and exceeded US $90 in oil distribution. Gold fell more than 1% from a two-month high. Lunxilun nickel ends two consecutive overcast and breaks away from the trough of one week.
The recent slump in U. S. stocks has failed to shake the Fed's determination to tighten money. After this week's Fed meeting, the Fed sent a clear signal that it could raise interest rates as soon as March, with Fed Chairman Powell hinting that the Fed has plenty of room to raise interest rates without harming economic growth, reinforcing its attitude of raising interest rates at a series of increases to curb high inflation. Major US stock indexes fell until the close, with the Dow and S & P failing to reverse the decline, with bond prices accelerating, yields rising and the dollar jumping in intraday trading.
Before the Fed announced the monetary policy decision, technology stocks led most US stocks to rebound, while blue-chip technology stocks rebounded across the board. Six major technology stocks, including Apple Inc and Microsoft Corp, and Tesla, Inc. collectively rose at least 2% in intraday trading. Microsoft Corp, who maintained a high growth rate of nearly 50% in the fourth quarter of last year and higher-than-expected revenue guidance in the first quarter, rose nearly 7% in early trading, supporting the Nasdaq and Nasdaq 100 intraday gains of more than 3%.
The Fed's post-meeting statement released at midday said that with inflation well above 2 per cent and a strong labour market, it was expected to be appropriate to raise interest rates soon, and the contraction was expected to begin after the end of Taper in early March and the start of the rate hike process. After the announcement, U. S. stocks rose slightly, and then gave up some of their gains. Powell, chairman of the Federal Reserve, said at a press conference after the meeting that the possibility that the Fed would raise interest rates at every meeting did not rule out the need for a large-scale reduction of the table, which began to be discussed after at least one increase in interest rates.
During the Powell press conference, the three major US stock indexes fell one after another. The Dow, which had risen more than 500 points in early trading, fell more than 400 points in the day, and the Standard General Index fell more than 1% in intraday trading. Except for Microsoft Corp's IT sector and the financial sector that benefited from the rise in US bond yields, all other sectors fell. Some technology stocks are volatile in after-hours, with higher-than-expected earnings and revenue in the fourth quarter but are expected to have supply chain problems throughout the year. Tesla, Inc. 's share price plunged at one point and then rose again.
After the Powell launch, the benchmark 10-year Treasury yield rose above 1.80% for the first time in the last four trading days, and continued to rise after the launch, rising about 10 basis points from the intraday low at one point. The yield on interest-sensitive 2-year Treasuries rose more than 10 basis points, the biggest rise in nearly two years since the outbreak of the epidemic in the United States, and the dollar index rose to 96.50, the highest since late December.
Among commodities, market risk appetite has warmed up, and the oil market is worried that the supply tension caused by the conflict between Russia and Ukraine has worsened. International crude oil continues to rise, with Brent crude breaking the $90 mark for the first time since October 2014. hit by the rising yields on the dollar and US bonds, gold fell from a two-month high and fell by more than 1% a day for the first time in nearly three weeks. Palladium futures rose more than 7% to a four-month high due to the geopolitical situation in Russia, a big palladium producer.
In the European market, European stocks, which closed before the Fed's decision to speak to Powell, escaped, and European stocks rose sharply, led by oil and gas-led sectors. Investors are worried that the Fed will tighten money more quickly, European bond prices continue to fall and yields rise further, but the overall sell-off in the bond market is limited as tensions in Ukraine weigh on risk appetite.
The Dow's new low in the past two months, S & P hit a three-month low in a row, only IT and the financial sector closed higher. After Tesla, Inc. 's financial report, the oil and gas sector fell sharply to support the sharp rise in European stocks.
The three major U. S. stock indexes collectively opened higher, keeping rising before the Powell conference. The s & p 500 and the Dow Jones industrial average rose to new highs in early trading, with the s & p up just over 2%, and the Dow up nearly 520 points, or more than 1.5%. The Nasdaq composite index was up more than 2% in early trading and more than 3% at its midday high. During the Powell press conference, the Dow, S & P and Nasdaq successively fell. At one point, the Dow fell more than 420 points and fell more than 1.2% during the day. At one point, the S & P and Nasdaq fell nearly 1.2% and 1.1%, respectively. After the news conference, the decline narrowed in late trading, and the Nasdaq barely rose.
In the end, the three major indexes closed only slightly up 0.02% at 13542.12, still approaching the low set by Tuesday's close since May 21 last year. The Dow and S & P fell for two days in a row. The Dow closed down 129.64 points, or 0.38%, at 34168.09, refreshing Friday's lowest close since December 1, and closed down on the eighth of the last nine trading days. S & p closed down 0.15% at 4349.93, its lowest level since Oct. 5, closed on Tuesday at its lowest level since December 12, and closed down on the sixth of the last seven trading days.
The small-cap stock index Russell 2000, which is dominated by value stocks, rose more than 2.2% in early trading and fell at midday, closing down 1.38%, losing the market and falling for two days in a row. The Nasdaq 100 index, which is dominated by technology stocks, rose more than 3.5% in intraday trading. Although it fell in midday, it rose in late trading and closed up 0.17%, outperforming the market.
Among the S & P 500 sectors, the IT of Microsoft Corp's sector, which rose just over 0.7 per cent on Wednesday, and the financial close up nearly 0.3 per cent, led the decline by nearly 1.7 per cent in real estate, about 1 per cent in materials, more than 0.8 per cent in industry and 0.7 per cent in utilities, and nearly 0.2 per cent in energy, the smallest decline.
Leading technology stocks closed up and down. Of the six major technology stocks in the former FAANMG and now GANMMA, Microsoft Corp performed best when it rose more than 2.8 per cent, while Alphabet, the parent company of Alphabet Inc-CL C, rose 1.8 per cent, while Meta and Netflix Inc, formerly known as Facebook Inc, fell more than 1.8 per cent, Amazon.Com Inc fell 0.8 per cent and Apple Inc fell less than 0.1 per cent. Tesla, Inc. closed up nearly 2.1%, but after the announcement of the results, the stock price was shocked and dived first, falling by about 6% at one time, and then rose. Ackerman, the after-hours fund boss, said his company recently bought more than 3.1 million shares of Netflix Inc, which rose more than 6 per cent at one point after the Frisbee.
Among the other stocks that reported results, Texas Instruments Inc (TXN), whose quarterly revenue was higher than expected and whose revenue guidance range was also higher than expected, closed up 2.5%; although quarterly income and profit were higher than expected, Automatic Data Processing (ADP) closed down nearly 9%; Kimberly-Clark Corporation (KMB), whose profit and revenue guidance was lower than expected, closed down 3.3%; Boeing Co, whose fourth-quarter loss was much higher than expected and revenue was lower than expected, fell. Rollins (ROL), whose quarterly earnings were slightly lower than expected, fell about 5 per cent; Intel, which closed up more than 1.3 per cent, reported higher-than-expected fourth-quarter earnings and revenue, followed by a lower-than-expected first-quarter earnings guidance, which fell nearly 5 per cent at one point; and Lam Research Corp, who closed 1.4 per cent higher, reported quarterly revenue guidance that was worse than expected and fell about 10 per cent after hours.
Among the volatile stocks, Moderna Inc, which was downgraded by Deutsche Bank from selling to its holdings, closed up about 1.6 per cent; MAT, which won back the authorization of the Princess Walt Disney Company series of toys, rose more than 4 per cent; and Clorox (CLX), which was downgraded by Credit Suisse to reduce its holdings, closed down 5.6 per cent.
Most popular US-listed stocks fell, with ETF KWEB and CQQQ closing down more than 3 per cent and about 1 per cent, respectively. IQIYI fell by more than 13%, Gaotu Techedu Inc. by more than 12%, Jinshan Cloud by 11%, Pinduoduo by more than 9%, TAL Education by nearly 9%, HUYA Inc. by more than 8%, Dingdong (Cayman) Limited by more than 7%, BABA, KE Holdings Inc, New Oriental Education & Technology, Bilibili Inc. by more than 6%, NIO Inc Automobile, Qutoutiao, Weibo Corp by more than 4%, Kaixinqic and RLX Technology Inc. by more than 2%, Tencent ADR, Baidu, Inc., JD.com, XPeng, Li Auto, DouYu International by over 1% Quhuo Limited and LUCKN COFFEE DRC rose by more than 2%, Zhangmen Education by more than 4%, and Ebang International Holdings Inc by more than 35%.
European stocks, pan-European stock index accelerated rebound, the European Stoxx 600 index closed the biggest gain since December 7 last year, and major European stock indexes are up two days in a row. Among the sectors, the oil and gas sector that led the gains closed up about 4%, the biggest increase since November 2020, while the basic resources of the tourism sector and mining stocks rose more than 3.3% and 2.6% respectively, leading the increase.
The yield on 10-year US bonds broke 1.8% for the first time in the last four days, and the 2-year yield reached the biggest daily increase in nearly two years. Italian and German government bonds reached the largest spread in more than a year.
European government bond prices continued to fall and yields rebounded further. By late European trading, the yield on UK 10-year benchmark government bonds rose 3.3 basis points to 1.198%, while that of German bunds rose 0.5 basis points to-0.074% over the same period. Over the same period, Italian bond yields rose 3.9 basis points to 1.328%, and the spread between intraday and German bonds widened to more than 145 basis points, the highest level since September 2020, reflecting the struggle of Italian parties to find an agreed president and increased political uncertainty. Investors are worried about whether Italy can elect its next president.
The yield on benchmark US 10-year Treasuries fell below 1.77 per cent before European trading, but the intraday decline was small. European stocks generally remained above 1.77 per cent after the opening of trading, while US stocks rallied above 1.79 per cent in pre-market and morning trading. close to 1.80% for the second day in a row.
After the Fed announced the decision, 10-year Treasury yields began to accelerate upward. During the Powell press conference, the rise expanded rapidly, not only standing at 1.80%, but also above 1.85% at one point, with an intraday rise of nearly 9 basis points. Refresh the intraday high since Thursday, January 20, breaking 1.80% for the first time since last Thursday, to close at about 1.87%, and up about 10 basis points on the day.
The yield on two-year US Treasuries also rose sharply in intraday trading, with US stocks closing at just over 1.16 per cent, the highest level since late February 2020, and an intraday rise of more than 14 basis points, the biggest one-day rise since March 2020.
The dollar index jumped to an one-month high and the offshore RMB fell after hitting a four-year high.
The ICE dollar index (DXY), which tracks the exchange rate of a basket of six major currencies, was close to 95.90 to refresh its daily low in early trading in Asia, falling less than 0.04% during the day, and then quickly rose. European stocks rose to 96.00 before trading, and the gains expanded after the Federal Reserve announced the resolution. During Powell's press conference, US stocks jumped significantly during the press conference. Us stocks rose above 96.50 at the end of the day, the highest since December 22 last year, and rose more than 0.6 per cent on the day.
By Wednesday's close, the dollar index was above 96.40, up more than 0.5% on the day, while the Bloomberg spot index rose 0.5%, its highest level since Jan. 10.
The offshore RMB (CNH), which rose for five consecutive days and turned lower in intraday trading, was trading at 6.3311 yuan against the dollar at 05:59 Beijing time on the 27th, down 44 points from late Tuesday in New York. European stocks rose to 6.3238 in intraday trading, refreshing the highest level since May 2018 after breaking through the 6.33 mark on Monday, but US stocks fell after accelerating their decline in intraday trading.
Crude oil hit a seven-year high and exceeded US $90 in the cloth oil pan.
International crude oil futures rebounded further after reversing three consecutive declines on Tuesday. Us WTI March crude oil futures closed up 2.04 per cent at US $87.35 per barrel, while Brent crude oil futures closed up 1.99 per cent at US $89.96 per barrel, and US Oil and US Oil both closed at their highest close since October 2014. Us Oil rose above $90 in US stocks, breaking that level for the first time since September 2014.
European natural gas, which has been rising for days, fell back. On Wednesday, ICE UK natural gas futures closed down 2.74% at 219.17 pence per kcal, ending three days of gains. TTF benchmark Dutch natural gas futures fell 3.73% to 90.450 euros per megawatt in late trading, falling for the first time in the last five trading days.
Us gasoline and natural gas futures rose for the second day in a row. NYMEX February gasoline futures closed up 2.6% at US $2.523 per gallon for two consecutive days, while NYMEX February natural gas futures closed up 5.5% at US $4.277 per million British thermal units for four consecutive days.
Lunxilun Nickel ends two consecutive overcast breaks from an one-week trough Gold falls from a two-month high to an one-week trough Palladium rose more than 7% to a four-month high
London base metal futures rose mostly on Wednesday. Both Lunxi and Lenny, which fell to an one-week low on Tuesday, rebounded, ending two days of losses. Lun Copper and Lun Aluminum rose for two days in a row, and Lun Aluminum approached the three-month high set last week. Lun Zinc reversed three consecutive days of decline, coming out of a week's trough. Lun lead fell for three days in a row, a two-week low.
New York gold futures, which closed at their highest close since November 18, fell back on Tuesday. COMEX February gold futures closed down 1.2%, the biggest closing decline since Jan. 6, at $1829.70 an ounce. It closed below $1830 for the first time since Tuesday, Jan. 18, and the decline widened as the dollar continued to rise. New York silver futures, which just ended two consecutive declines on Tuesday, also fell, closing down 0.4%. Platinum and palladium futures rose two days and seven days in a row, closing up 2% and 7.4% respectively, and palladium reached its highest level since September last year.
