FX168 Financial News (North America) #美股收评 #周四 (November 14), the US stock market declined. Powell said the Federal Reserve was in no hurry to cut interest rates, then the stock market fell, and the Dow fell more than 200 points.
The Dow Jones Industrial Average fell 207.33 points, or 0.48%, to close at 43750.86 points; the S&P 500 index fell 0.61% to close at 5949.17 points; and the Nasdaq Composite fell 0.64% to 19107.65 points.
(Source: FX168)
(Source: FX168)
Powell hinted at not being in a hurry to cut interest rates
Federal Reserve Chairman Jerome Powell suggests that the strong economic situation may be worth maintaining some patience with future interest rate cuts.
Federal Reserve Chairman Jerome Powell said in Dallas that the Federal Reserve did not need to “rush” to cut interest rates. The stock market then fell, and the Dow fell more than 200 points.
“The economic strength we are currently seeing allows us to make careful decisions,” Powell said.
PPI data
The October Producer Price Index (PPI), released on Thursday, rose 0.2%, in line with the predictions of economists surveyed by the Dow Jones. PPI, excluding food and energy, rose faster than expected.
The October Consumer Price Index (CPI) released on Wednesday was in line with expectations, but it still shows that the Federal Reserve's war on inflation has not been won. Core CPI rose 0.3% for the third month in a row, with a 12-month increase of 3.3%.
Employment Report
Meanwhile, another report shows that the US job market remains stable. The number of US unemployment claims dropped last week, the latest sign that layoffs have yet to begin.
The “Trump deal” is weak
In some corners of the market, the “Trump deal” showed fatigue. Some of the stocks that have risen the most due to Trump's election have also lost momentum.
Reuters reports that the Trump administration will consider canceling the $7,500 electric vehicle tax credit for consumers, and Tesla fell 5.77%.
Meanwhile, the Russell 2000 Small Cap Index fell 1.4%.
Furthermore, the Republican Party still maintained a weak majority in the House of Representatives, allowing President-elect Donald Trump and his party to win a “three-game winning streak,” and the market closely followed policy trends.
The bond market
Short-term yields rose after Powell said “the economy is not sending any signal that we need to hastily lower interest rates.”
The two-year US Treasury yield is closely linked to expectations of the Federal Reserve's action, rising to 4.35% from 4.28% late Wednesday.
The 10-year US Treasury yield also fluctuated up and down, finally closing at 4.45% at the end of Wednesday.
Individual stocks in focus
Moderna fell 5.62%, Novavax fell 7.02%, and there are reports that Trump will appoint anti-vaccine activist Robert F. Kennedy Jr. (Robert F. Kennedy Jr.) Leading the Department of Health and Human Services, vaccine stocks fell at the close.
Cisco fell 2.13%, although the company reported profit for the latest quarter that was higher than analysts' expectations. Analysts said investors may have been expecting the company to raise its financial expectations even further.
Ultramicrocomputer plummeted 11.41% to become one of the biggest losers in the S&P 500 index. The company previously told US regulators that it would take more time to submit its latest quarterly financial statements up to September.
Walt Disney Corp. shares rose 6.23%, and the entertainment giant reported profits for the latest quarter higher than analysts' expectations. CEO Robert Egg credited the streaming business's increased profits and strong movie box office performance, including “Mind Force 2” and “Deadpool and Wolverine.”
Tapestry shares rose 12.8%, and the luxury fashion company announced the end of its merger with Capri, the owner of another luxury brand. Last year, the two companies reached a $8.5 billion deal to merge Coach and Michael Kors handbag makers, but the merger faced many challenges, including a lawsuit by the US Federal Trade Commission to block the deal on antitrust grounds. Capri shares rose 4.43%.
The US stock of ASML, a major supplier to the global chip industry, rose 2.9%, sending some encouraging signals for technology stocks. The Dutch company said it expects global semiconductor sales to exceed $1 trillion by 2030, driven by demand related to artificial intelligence technology, and maintain its long-term financial forecast.
