On Monday, local time, the three major US stock indexes collectively closed down, and the daily line recorded a "four-day losing streak". Dow fell 0.32%, Standard & Poor's 500 index fell 0.75%, and Nasdaq index fell 1.04%, hitting a two-year low. So today, Bian Xiao is here to sort out the declines of the three major American stock indexes. Let's have a look!
The three major US stock indexes closed down, with Nasdaq hitting a two-year low.
On June 10, local time, the three major indexes of the US stock market opened higher and went lower, and the intraday volatility went down, and the decline in the late session narrowed.
At the close, the Dow fell 0.32% to 29,202.88 points, and fell nearly1%in the afternoon; The Nasdaq fell 1.04% to close at 10542.5438+00, the lowest closing since July 2020, and once fell by nearly 2%. The Standard & Poor's 500 Index fell 0.75% to close at 36 12.39, once falling below 1.4%.
Most large technology stocks fell, with the semiconductor sector leading the decline. NVIDIA and TSMC fell more than 3%, Microsoft fell more than 2%, Amazon and Google fell about 0.8%, Tesla fell slightly by 0.05%, and Apple and Facebook parent company Meta rose slightly against the trend.
International oil prices fell, led by the energy sector. Western oil fell nearly 6%, ExxonMobil and Total fell more than 2%, and Chevron fell 1.8%. The futures price of light crude oil for June delivery in the New York Mercantile Exchange was 1 1.5 1 USD, with a decrease of 1.63% to close at 91.1USD per barrel; London Brent crude oil futures for February delivery closed at $ 96. 19 per barrel, down by 1.77%.
Ford Motor Company fell 6.89%, and General Motors Company fell nearly 4%. The share prices of both companies fell by about 45% during the year, and their market value was less than $50 billion. UBS Group AG recently downgraded the ratings and target prices of the two automakers, mainly because the Federal Reserve's interest rate hike has put economic growth in a severe test, and the possible economic recession has affected the sales expectations of the two companies.
Popular Chinese stocks were generally frustrated, and the Nasdaq China Jinlong Index fell 5.3 1%. Shells fell by 9.54%, Pinduoduo by 8.34%, Baidu by 4%, Netease and Weilai by 3%, and Alibaba and Li by 2%.
Inflation data was released this week, and the new earnings season is about to begin.
Last week, the US stock market experienced a round of shocks. Affected by strong employment data or factors such as pushing the Fed to continue to raise interest rates sharply, the Standard & Poor's 500 index retreated most of its gains in the last three days, with gains exceeding 5% in the first two days. This week, the Dow Jones index rose nearly 2%, the Nasdaq index rose 0.7%, and the S&P 500 index rose 1.5%.
JPMorgan Chase, Wells Fargo, Morgan Stanley, Citigroup, Pepsi and Delta Air Lines will release their latest quarterly results this week. On Thursday, US inflation data for September will also be released. In addition, the minutes of the Federal Reserve's September monetary policy meeting will be announced on Wednesday, and the market is looking forward to finding the next policy signal of raising interest rates.
MohamedEl-Erian, chief economic adviser of Allianz, said on Sunday that the overall inflation rate in the United States will drop to around 8%, but core inflation will continue to rise. OPEC+announced the largest production reduction since 2020, which will hurt the United States and may lead to increased inflation. However, Elian is not surprised by OPEC+'s decision, because the organization is seeking to protect oil prices from shrinking demand.
Chicago Fed President Evans said that the pressure on the supply chain has eased and the inflation data may decline. He supports the Fed to adjust interest rates to a restrictive level that can monitor the impact. The Fed is committed to reducing inflation, even though people may lose some jobs. Curbing inflation is the most important thing, and price stability provides the foundation for strong economic growth in the future.
According to the data released by the US Department of Labor last week, in September this year, the number of new jobs in the non-agricultural sector in the United States was 263,000, and the unemployment rate was 3.5%, returning to the low points 1969 and 12. "If the unemployment rate rises, it will be unfortunate. It will be very difficult if the unemployment rate rises sharply. But price stability can make the future better. " Evans said.
Brainerd, vice chairman of the Federal Reserve, also said that the monetary tightening policy has begun to be reflected in the economic field, and the economic growth may be slower than expected, but the impact of the Fed's interest rate hike will not be obvious in the next few months. She believes that the Fed obviously needs to tighten its monetary policy stance to control inflation.
"Sister Wood" criticized JPMorgan Chase CEO Federal Reserve for warning risks.
On the same day, "Sister Mu" and CathieWood, CEO of Ark Investment Company, publicly wrote to the Fed that the inflation data was lagging behind and the tough Fed was making mistakes. The Federal Reserve not only shook the American economy, but also had an impact on the world, and the risk of deflation collapse increased.
Casey said that excluding food and energy, commodity prices have peaked and declined year-on-year. There is no doubt that food and energy prices are very important, and the Fed should not aggravate global pain. The conflict between Russia and Ukraine has brought an impact on agricultural products and energy supply. She suggested that in addition to the employment and inflation data of the previous month, the Fed should pay more attention to the current commodity prices, which indicates that the economy may be heading for deflation rather than inflation.
Kathy pointed out that both manufacturers and retailers are under pressure to accumulate inventory. After more than a year of supply chain bottleneck, multinational companies seem to have adjusted their plans. In the latest quarter, the inventory of Wal-Mart and Target increased by 25.5% and 36. 1% respectively. Nike sales increased by 3.6%, but global inventory increased by 44.2%.
Besides "Sister Mu", JPMorgan Chase CEO Dimon also warned that compared with 2008, the current US economy is indeed performing well, and consumers can better cope with risks. But looking ahead, the US economy may fall into recession in 2023. As predicted by some economists, this is no small economic contraction.
Since the beginning of this year, the S&P 500 index has fallen by more than 24%. Dimon said that the S&P index may fall by another 20%, which is more painful than the previous 20% drop. It is difficult to predict the duration of the recession, but investors can be prepared. In June, Dimon said that the economy would be hit by a hurricane and JPMorgan Chase was ready.
It is worth mentioning that on Monday, Bernanke, who served as chairman of the Federal Reserve during the 2008 economic crisis, won the Nobel Prize in Economics. Dimon has been in charge of JPMorgan Chase for more than ten years, and he is the only one of the heads of many financial giants who is still in office during the economic crisis.