Wednesday (31) As expected by the market, the Fed announced at the interest rate meeting this month that it would begin the first ten-year rate in 10 years. However, Fed bank president Bower denied that the interest rate cut is the start of a long-term interest rate hike, leading to a sharp fall in US equities.
The Dow Jones index dropped more than 400 points at the end of the session, closing its largest one-day fall since May 31, while Nasdaq hit its largest one-day fall since the end of June.
On Wednesday (31) US shares have four major index shares:
- The US stock market Dow Jones fell 333.75 points, or 1.23%, to 26,864.27 points.
- The Nasdaq index fell 98.19 points, or 1.19%, to close at 8175.42 points.
- The S&P 500 index fell 32.80 points, or 1.09%, to close at 2980.38 points.
- The Philadelphia Semiconductor Index fell 51.38 points, or 3.22%, to close at 1542.44 points.
Apple (AAPL US) on Tuesday (30) Announced 2019 fiscal year Q3 earnings report pays for a brilliant transcript, whether it's earnings, earnings per share (EPS), next quarter's financial forecast and other data better than Wall Street expectations However, AMD's revenue for the next quarter was worse than market expectations, leading to a sell-off in semiconductor markets on Wednesday.
The corners (FAANG) closed higher. Apple (AAPL-US) rose 2.04%; Alphabet (GOOGL-US) fell 0.80%; Amazon (AMZN-US) fell 1.67%; Netflix (NFLX-US) fell 0.90%; Facebook (FB US) fell 1.43%.
Semiconductor shares plunged collectively, AMD (AMD-US) plunged 10.10%; Huirong Technology (SIMO-US) plunged 11.40%; Micron (MU-US) fell 5.42%; Xilinx (XLNX-US) fell 4.43%; Broadcom (AVGO-US) fell 3.19%; NVIDIA (NVDA-US) fell 3.82%.
The Fed's eagle cuts pushed financial stocks further and further down. Morgan Stanley (MS-US) fell 0.25%; Bank of America (BAC-US) fell 0.68%; JP Morgan Chase (JPM-US) rose 0.35%.
Taiwanese ADRs have been mixed. UMC ADR (UMC-US) rose 1.40%; ASE ADR (ASX-US) rose 0.23%; AUO ADR (AUO-US) fell 2.66%; TSMC ADR (TSM-US) fell 1.11%; Chunghwa Telecom ADR (CHT- US) fell 1.13%.
Wall Street analysis
Federal Reserve Chairman Paul said on Wednesday that the tariff cut is essentially the nature of the medium-term adjustment policy of the monetary policy. This is not the beginning of a series of interest rates, suggesting that interest rates will not be cut later this year.
Bauer's words led to a general closure on the US stock market. The 10-year US bond yield dropped 2.01%, while the 2-year US bond yield rose 1.87%. The US dollar rose to the highest point in two months, and the price of gold fell. .
Following the press conference to cut interest rates, Trump's tweet complained that Federal Reserve (Fed) chairman Paul was disappointed with everyone. CIBC and Jefferies analysts at Imperial Bank of Canada said the Fed was not as weak as expected, and this rate hike was a "hack tax cut."
Don Ellenberger, senior portfolio manager at financial services firm Federated Investors, said US equities appear to be disappointed with Bauer's performance, possibly because Bauer did not suggest that interest rates will be cut again and again, and there are no clear signs for further cut interest rates in September.
Mark Haefele, chief investment officer of UBS Wealth Management Global, said: "The Fed is looking into a range of issues. Indeed, low-pass inflation will allow the Fed to have some room to take timely measures and hope to avoid turning negative interest rates on the market. future. Politics. Because they are ready to respond flexibly, they can turn to languages that rely on economic data. "
Gregory Faranello, chief of US interest rates at AmeriVet Securities, said the market is clearly building on Ball's comments, meaning that the importance of the Fed's interest rate has also led to liquidity.