Major US indexes fell last week After the worst performance in 20 years in September, the fourth quarter started higher on Monday (3rd), but electric car leader Tesla delivered fewer vehicles last quarter than market expectations , and its shares fell more than the stock. declines also capped gains in the Nasdaq, which is dominated by growth and technology stocks.
Before the deadline, the Dow Jones Industrial Average rose more than 350 points or almost 1.25%, the Nasdaq Composite rose almost 90 points or almost 0.9%, the S&P 500 rose almost 1.1%, and the Philadelphia Semiconductor Index rose almost 2%.
Global markets remain jittery about the economic impact of monetary tightening after central banks such as the US Federal Reserve reaffirmed their determination to contain runaway inflation. Traders have reduced bets on the Fed to raise interest rates, believing the federal funds rate will peak in March next year, and are also awaiting September non-farm payrolls data released on Friday (7 ) to find information about the economy and the progress of the Fed, clues to the information path.
British government policy has taken a major turn, canceling the tax cut scheme for high income earners. Chancellor Kwasi Kwarteng tweeted that he “didn’t go ahead” to remove the top 45% income tax rate, saying it had become a “distraction”. After the news came out, the pound rose 1% against the dollar in the short term, and limited the advance to 0.67% before the deadline, at $1.1235.
Another spotlight on the market is Credit Suisse, which was the most speculated institution after Wall Street reported that a major bank was on the verge of bankruptcy. Since the start of this year, affected by a series of bad news, the stock has fallen 60% this year.
Credit Suisse shares hit record lows last week and the credit default swap (CDS) index climbed about 15 percent to its highest level since 2009, raising concerns about the bank’s financial health.
In terms of energy, international oil prices were affected by the news that the Organization of the Petroleum Exporting Countries and its partners (OPEC+) could announce a daily production cut of more than 1 million barrels this week. November was trading above $83 a barrel, while Brent crude futures, which expire in November, were nearing $90 a barrel, further fueling inflation concerns.
From 21:00 on Monday (3rd) Taipei time:
Tesla ( TSLA-US ) fell 7.13% to $246.34 a share in early trade
Tesla, a major electric car maker in the United States, delivered 343,830 vehicles globally last quarter, breaking a record but still falling short of analysts’ expectations. Tesla warned that there are still challenges in supplying vehicles, showing that supply chain chaos is still a major problem. Tesla shares fell more than 4% on the news in premarket trading.
Credit Suisse (CS-US) fell 4.34% to $3.75 a share in early trade
Credit Suisse’s credit default swap (CDS) spread rose on Friday, after chief executives reassured major clients, traders and investors over the weekend that the bank’s liquidity and funding position was secure in response to market concerns about Credit Suisse’s financial strength.
CDS is a derivative contract for investors to avoid credit risk. The spread of the CDS has increased dramatically, highlighting that investors are worried about Credit Suisse’s financial position.
Robinhood (HOOD-US) fell 2.78% to $9.82 a share in early trade
Robinhood Markets announced five more office closures as part of a restructuring plan in August. However, with Robinhood closing several offices, its restructuring charges will rise to a range of $90 million to $150 million, up from an earlier estimate of $45 million to $60 million.
Today’s key economic data:
- The final value of Markit US manufacturing PMI in September was 52, expected 51.8, and the previous value was 51.5
- September US ISM manufacturing index reported 50.9, expected 52.2, and previous value of 52.8
Wall Street Analysis:
Colin Asher, senior economist at Mizuho Bank in London, said the Fed is trying to tighten monetary conditions aggressively, and a weak stock market is one way to do that, with inflation still high and central banks afraid to let go.