With the emergency intervention of the Bank of England in buying bonds to save the market, the global bond market has improved one after the other, and US bond yields have plummeted. US stocks opened higher on Wednesday (28th). As Hurricane Ian shut down about 11% of oil production and 8.56% of natural gas production in the US Gulf of Mexico, pushing oil prices up more than 3%, energy led the broader market higher, Apple went against to the trend lower, and the four major indices closed together in red.
The Dow Jones closed up nearly 550 points, rebounding sharply from 2022 lows, and the S&P rose nearly 2%, ending a six-day losing streak.
Sterling strengthened and the 10-year US Treasury yield fell to around 3.7% from a one-day high of 4% on Wednesday after the Bank of England said it would temporarily buy long-term British bonds to stabilize its plunging currency.
Former US Treasury Secretary Lawrence Summers said on Wednesday that given the current market situation, the Bank of England’s purchase of British bonds is doing the right thing to try to restore orderly market conditions, but it cannot really solve the British policy problem.
Federal Reserve officials have a firm hawkish stance. Compared to Fed Chairman Powell’s suggestion that a recession is a necessary measure to curb inflation, US Treasury Deputy Secretary Wally Adeyemo is hopeful that the Biden administration is optimistic about the future of the US economy. , it is possible for the US to maintain growth while reducing inflation, and the economy can achieve a soft landing.
US President Joe Biden on Wednesday approved an additional $1.1 billion in military aid to Ukraine in the Ukraine-Russia war. In addition, Moscow could annex four Russian-held regions in southern and eastern Ukraine as soon as this week, announcing that its voters had overwhelmingly agreed to join Russia.
European energy crises are widespread, and the EU continues to investigate the cause of the Nord Stream 1 and Nord Stream 2 natural gas pipeline leaks. Many governments in Europe and the United States suspect that Russia is the mastermind behind the deliberate sabotage of Russia has vehemently denied the charge of participating in the sabotage.
The global epidemic of new coronary pneumonia (COVID-19) continues to spread. Before the deadline, data from Johns Hopkins University in the United States indicated that the number of confirmed cases worldwide had exceeded 616 million, and that the number of deaths has exceeded 6.54 million. More than 12.7 billion vaccine doses have been administered in 184 countries worldwide.
The performance of the four major US stock indexes on Wednesday (28th):
- The Dow Jones Industrial Average rose 548.75 points, or 1.88%, to close at 29,683.74 points.
- The Nasdaq added 222.13 points, or 2.05%, to 11,051.64.
- The S&P 500 gained 71.75 points, or 1.97%, to 3,719.04.
- The Philadelphia Semiconductor Index rose 29.2 points, or 1.22 percent, to 2,427.3.
The five kings of science and technology are only black Apple. Apple (AAPL-US) was down 1.27%; Meta (META-US) was up 5.36%; Alphabet (GOOGL-US) was up 2.62%; Amazon (AMZN-US) was up 3.15%; Microsoft (MSFT-US) was up 1.97%.
Dow Jones components were led by Home Depot. Home Depot (HD-US) rose 5.02%; Boeing (BA-US) rose 4.65%; Disney (DIS-US) rose 3.7%; Chevron (CVX-US) rose 3.38%; it rose 3.28%.
Fees and half electorates generally rose. Intel (INTC-US) was up 0.89%; Micron (MU-US) was up 0.83%; NVIDIA (NVDA-US) was up 2.60%; AMD (AMD-US) up 1.77%; Applied Materials (AMAT-US) ) up 2.20%; Qualcomm (QCOM-US) fell 1.17%; Texas Instruments (TXN-US) rose 1.30%.
Taiwan stock ADR ended higher. TSMC ADR (TSM-US) was down 1.23%; ASE ADR (ASX-US) was down 1.90%; UMC ADR (UMC-US) was flat; Chunghwa Telecom ADR (CHT-US) was up 0.63%.
Apple (AAPL-US) fell 1.27% to $149.84 a share on Wednesday after the company abandoned plans to increase iPhone production. Tianfeng International Securities analyst Ming-Chi Kuo tweeted on Wednesday: “The rumor that Apple has given up on increasing iPhone production is a bit strange. Previous investigations have shown that Apple has plans to change iPhone 14 production lines /14 Plus to iPhone 14 Pro /14 Pro Max / cut prices for the iPhone 13 design., but I have not heard of any general plans to increase iPhone production.”
Boeing (BA-US) rose 4.65% to $133.44 a share. Boeing and Taiwan’s China Airlines have completed an order for the 787 Dreamliner. According to reports, the 16 Boeing 787-9 passenger jets cost a total of 4.6 billion US dollars, and China Airlines has an option to buy 8 more.
Global e-commerce leader Amazon ( AMZN-US ) closed up 3.15% to $118.01 a share. Amazon unveiled a slew of new products on Wednesday, including a next-generation Kindle with writing capabilities, a new robot called Astro, and a bedside sleep tracker.
ASE ADR (ASX-US) closed up 1.90% at $5.15 per share, or 82.09 yuan per share, representing a discount-to-premium ratio of 4.97%. ASE said on Wednesday it has teamed up with Qualcomm and other companies and organizations to build the world’s first 5G mmWave NR-DC SA smart factory to address labor shortages and meet diverse and changing order requirements.
- The US goods trade balance in August was reported at -$87.3 billion, compared to -$90.19 billion previously
- The initial monthly growth rate of US wholesale inventories in August was 1.3%, 0.4% was expected, and the previous value was 0.6%
- The United States reported August for home sales a monthly rate of -2%, expected -1.4%, the previous value of -1%
- US existing home sales in August reported an annual rate of – 22.5%, expected – 24.5%, the previous value – 22.5%
- The change in US EIA crude oil inventories last week is expected to be 443,000 barrels, up from a previous figure of 1.142 million barrels
- US EIA gasoline inventories last week expected 709,000 barrels, a previous value of 1.569 million barrels
Wall Street Analysis
The recent surge in bond yields threatens the housing market and the wider economy, said Kenneth Broux, currency strategist at Societe Generale. But the Bank of England still has to raise interest rates, which is also contagious. The International Monetary Fund (IMF) and the US Treasury Department said a day earlier that they were worried about the spread of the global crisis from Britain’s debt to other markets.
“All eyes are on inflation and interest rates, and a hawkish or more hawkish Fed has certainly brought stocks into a worrisome period,” said Josh Emanuel, Wilshire’s chief investment officer. “From now on, if investors look at Until bond yields are lower, that bodes well for stocks.”
Figures are updated before the deadline, please refer to the actual quote.