On the evening of the 6th Beijing time, US stocks opened low on Tuesday. Markets are still assessing the impact of yesterday's strong economic data on Fed monetary policy. Investors worry that strong economic data will allow the Fed to maintain a high interest rate policy for a longer period of time, thereby cooling the economy and curbing inflation.
The three major indexes of US stocks opened low. As of press time, the S & P 500 index fell 0.44%, the Nasdaq fell 0.77%, and the Dow fell 0.14%.
The Dow opened down 12.76 points, or 0.04%, at 33934.34; the Nasdaq fell 6.91, or 0.06%, to 11233.03; and the S & P 500 fell 2.08, or 0.05%, to 3996.76.
On Tuesday morning, the two-year and 10-year Treasury yield curve was inverted to 82.9 basis points, the highest in two weeks.
Us stocks closed sharply lower on Monday, with technology stocks leading the way, with the Nasdaq closing down 1.93%, the biggest one-day drop since November 9. The S & P 500 closed down 1.79% and the Nasdaq closed down 482 points.
The November ISM services index released on the same day exceeded expectations and showed that wages continued to rise, causing the market to worry that future inflation in the United States will continue to rise and that the Federal Reserve may raise interest rates for longer than originally expected in order to contain inflationary pressures.
The ISM services index, along with non-farm payrolls data released last week, shows that some parts of the US economy are still resilient and that the Fed still has a long way to go to try to contain price rises by "cooling the economy and curbing demand".
The Fed is widely expected to raise interest rates by 50 basis points at its December FOMC meeting, but there is still debate about how long the Fed's rate hike will last, especially after the release of the latest ISM services data.
After the sharp fall in US stocks on Monday, some analysts warned that the recent rebound in US stocks was over and that a new round of declines might have begun. By Friday's close, the S & P 500 was up more than 16% from its intraday low on Oct. 13.
Jonathan Krinsky, chief strategist at BTIG, the US investment bank, pointed out that after the S & P fell 1.79 per cent on Monday, it coincided with the 200-day moving average, which is often seen as a bellwether of the long-term trend of the market, and US stocks are about to plummet.
Katie Stockton, a technical strategist at Fairlead Strategies, believes that Monday's correction in US stocks is "a sign of market fragility" and that it is reasonable to consider the duration and magnitude of the rebound.
Dan Niles, founder and senior portfolio manager of hedge fund The Satori Fund, said US stocks could "get worse" again in early 2023 because of rising interest rates and weak demand.
On Monday, Morgan StanleyThree big investment banks, including Bank of America and Deutsche Bank, have warned that U. S. stocks will continue to fall. Bank of America said that if the u.s. economy fell into recession, the s & p 500 could fall about 20% from its current level.
Focus stocks
Star technology stocks generally fell.Tesla, Inc. fell more than 2%, Amazon.Com Inc fell nearly 1%, Apple Inc, Microsoft Corp and other stocks fell slightly.
Hot Chinese stocks go up and down differently.Ideal, XPeng Inc. rose about 3%, Bilibili Inc. and Baidu, Inc. rose more than 1%, BABA, Pinduoduo and NIO Inc. all fell.
$Meta Platforms (META.US)$It fell nearly 5%, with market news saying that Meta's targeted advertising model is facing restrictions in Europe.
$Gitlab (GTLB.US)$Revenue of more than 9% of focus Q3 beat expectations by $113 million, raising revenue guidance for fiscal year 2023 to $4.205-$420.5 million.
$Taiwan Semiconductor Manufacturing (TSM.US)$It fell by more than 2%. It is reported that Taiwan Semiconductor Manufacturing Co Ltd's Arizona fab is facing construction and operation challenges.
$Moderna (MRNA.US)$After falling by more than 2%, Pfizer Inc and BioNTech filed a counterclaim against Moderna Inc on the patent for COVID-19 vaccine.
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