Federal Reserve (Fed) Chairman Powell on Wednesday (2nd) expressed his support for a 1 yard gain in March, in line with market expectations, U.S. bond yields jumped, cyclical stocks such as energy and financials led the gains, and the four major indexes rebounded across the board. The Dow Jones closed in the red nearly 600 points.
In terms of data, the U.S. ADP employment data, known as “small non-agricultural farmers,” in February reached 475,000, higher than the expected 375,000, showing that the impact of the epidemic is gradually fading, companies have resumed more normal operations, and the labor market is still recovering. continued.
Political and economic news, the Ukrainian-Russian war continues to rage, the Biden administration on Wednesday imposed a series of new sanctions against Russia and its ally Belarus, including a comprehensive blockade of Russian defense entities and the implementation of export controls on the oil refining industry, expanding export control policies to Belarus, Prevent technology and software from being transferred to Russia through the country.
Powell testified before the House Financial Services Committee on Wednesday that the Federal Reserve would be cautious due to geopolitical uncertainty, and he supported a 25 basis point rate hike later in March. However, he added that a 50 basis point rate hike is still possible in the future if inflation is higher than expected.
The Ukrainian-Russian war threatens to drag down the global economy and disrupt supply chains again, turning markets’ expectations for a March rate hike by the Federal Reserve to 1 from 2 earlier. The U.S. economy has expanded at a moderate to moderate pace since mid-January, with some regions reporting a surge in new crown diagnoses and a temporary weakening in demand from the hospitality industry, the Federal Reserve’s “Beige Book” economic survey of jurisdictions released on Wednesday showed.
Before the deadline, according to data from Johns Hopkins University in the United States, the number of confirmed cases worldwide has exceeded 439 million, and the number of deaths has exceeded 5.97 million. More than 10.8 billion vaccine doses have been administered in 184 countries worldwide.
The performance of the four major U.S. stock indexes on Wednesday (2nd):
- The Dow Jones Industrial Average rose 596.4 points, or 1.79 percent, to end at 33,891.35.
- The Nasdaq added 219.56 points, or 1.62 percent, to 13,752.02.
- The S&P 500 gained 80.28 points, or 1.86%, to 4,386.54.
- The Philadelphia Semiconductor Index rose 111.31 points, or 3.37 percent, to 3,416.16.
Focus stocks
The five kings of science and technology have risen together. Apple (AAPL-US) was up 2.06%; Meta (formerly Facebook) (FB-US) was up 2.27%; Alphabet (GOOGL-US) was up 0.38%; Amazon (AMZN-US) was up 0.60%; Microsoft (MSFT-US) was up 0.60% ) rose 1.78%.
Dow Jones components only Visa closed in the black. Pioneering Heavy Industries (CAT-US) rose 5.35%; Dow Chemical (DOW-US) rose 3.62%; Traveller (TRV-US) rose 3.49%; Chevron (CVX-US) rose 2.95%; Visa (V- US) fell 0.23%.
Fei half warmed up. Micron (MU-US) rose 8.16%; AMD (AMD-US) rose 3.91%; Nvidia (NVDA-US) rose 3.18%; Applied Materials (AMAT-US) rose 2.75%; Qualcomm (QCOM-US) rose 3.83 %; Intel (INTC-US) rose 4.38%.
Taiwan stock ADR rose collectively. TSMC ADR (TSM-US) rose 1.44%; ASE ADR (ASX-US) rose 2.64%; UMC ADR (UMC-US) rose 2.67%; Chunghwa Telecom ADR (CHT-US) rose 0.02%.
Corporate News
Apple (AAPL-US) rose 2.06% to $166.56 a share. Apple issued an invitation to an online event on Wednesday, and will hold a 2022 spring new product launch event on March 8th PST (2:00 a.m. Taiwan time on March 9th) with the theme “Peek Performance”, implying some product upgrades. The outside world is expected to launch new products such as the third-generation iPhone SE and the new iMac.
Ford (F-US) soared 8.38% to $18.10 per share. The company announced a historic restructuring plan to separate the Electric Vehicle and Internal Combustion Engine (ICE) businesses into separate operating divisions to accelerate the development of the electric vehicle business. The newly formed Ford Model e division will expand Ford’s electric vehicle offering and develop software, connected vehicle technology and services for the entire company.
Salesforce (CRM-US) rose 0.72% to $210.39 a share. Salesforce announced its fourth-quarter earnings after the bell on Tuesday, and its full-year forecast was good. Fourth-quarter revenue rose 26% to $7.33 billion, with adjusted earnings per share of $0.84.
Economic data
- US February ADP payrolls reported 475,000, expected 375,000, the previous value – 301,000
Wall Street Analysis
Angelo Kourkafas, investment strategist at Edward Jones, said it was a relief that U.S. economic data continued to be solid, which is a tug of war between uncertainty and fundamentals, and the situation is still very fluid and market volatility is likely to continue.
Stephanie Link, chief investment strategist and portfolio manager at Hightower, said Powell on Wednesday broke his forecast for aggressive rate hikes by making the Fed less hawkish and removing a near-term unknown, reassuring investors.
Jeanette Garretty, managing director at Robertson Stephens Wealth Management, said it was worth pointing out that Powell’s renewed emphasis on data and flexibility on Wednesday meant the Fed was still closely watching economic growth data for now.
(The figures are updated before the deadline, please refer to the actual quotation)
