SMM News: in the early morning of the 24th, US stocks closed down on Wednesday, with technology stocks leading the way. The Nasdaq fell more than 3%, and the S & P 500 was close to falling into a pullback. A new round of economic stimulus package is still deadlocked, Powell and other Fed officials warned of the risks of economic recovery and called for fiscal stimulus measures. Analysts say the U. S. economic recovery has slowed.
The Dow fell 525.05 points, or 1.92%, to 26763.13; the Nasdaq fell 330.65 points, or 3.02%, to 10632.99; and the S & P 500 fell 78.65 points, or 2.37%, to 3236.92.
The s & p has fallen nearly 10% from its recent high of 3588.11, nearing a pullback.
Technology stocks led the decline, with the Dow new premium FTSE (235.99,-11.79,-4.76%) closing down 4.7%. Apple (107.12,-4.69) closed down 4.2%. Google (1415.21,-50.25,-3.43%), Amazon (2999.86,-129.13,-4.13%), Microsoft (200.59,-6.83,-3.29%), Oracle (58.96,-1.66,-2.74%), Intel (48.82,-1.13,-2.26%) and Nvidia generally declined. Electric car maker Tesla (380.36,-43.87,-10.34%) tumbled 10%. Nikola tumbled 26%.
Dow component Nike (127.11,10.24,8.76%) (NKE)) rose 8.8% against the market after the sportswear maker announced that its results far exceeded market expectations as growth in online sales offset continued weakness in brick-and-mortar store traffic.
Shares of Stitch Fix (SFIX), an online personal styling service, closed down 15.5% after the company reported a quarterly loss that exceeded expectations.
Tesla's (TSLA) fell more than 10 per cent. At the first Battery Day event on Tuesday night, CEO Musk announced his latest long-term goal of halving battery costs to produce a cheap electric car priced at $25000 by 2023, but Wall Street is more looking forward to the company's recent progress.
Democrats and Republicans in the U.S. House of Representatives passed an expedient appropriations bill on Tuesday night, providing operational funds to the federal government until December 11 to allow the government to continue to operate after restarting controversial negotiations on agricultural aid. The Senate is also expected to pass the bill.
The temporary spending bill was passed by the House of Representatives, basically relieving the risk of a US government shutdown, and investors' concerns have been eased to a certain extent.
However, given that the new round of economic stimulus package is still full of uncertainty, and it is difficult for the Fed to introduce new stimulus measures, the tone of the market is still pessimistic.
Powell and Mnuchin testify again in Congress
Federal Reserve Chairman Colin Powell and U.S. Treasury Secretary Mnuchin testified again before the U.S. Congress on Wednesday. Mr Powell said acceptance of the main Street loan scheme was "moderate", but it would bear a heavier burden if the economy performed "worse than we expected".
Powell says the economic rewards of making people feel safe are very high. Great progress has been made in the economy, but there is still a lot of work to be done.
Powell defended the Fed's purchases of secondary market corporate bonds, saying that Fed corporate bond purchases had fallen to $20 million a day.
Powell faced questions from members of Congress on Wednesday whether the central bank's actions were helping ordinary Americans or the market. "our action is by no means aimed at alleviating the pain on Wall Street," Powell said at a hearing before the House Coronavirus crisis Committee on Wednesday. "We have basically done everything we can think of." He added: "We are looking to do more."
Powell defended the Fed's mass lending program, saying it started slowly and was rarely used by small and medium-sized businesses. In response to a question from the committee, Powell said, "the current loan program cannot be used for smaller loans." We must launch a new program that protects taxpayers much less. "
Powell and Finance Secretary Mnuchin testified before the House Financial Services Committee on Tuesday, calling for further fiscal stimulus measures. Powell highlighted the limitations of the Fed's lending capacity, especially given the lack of willingness of companies to participate in the central bank's main street lending program, which so far accounts for less than 1% of the central bank's lending capacity.
"A lot of borrowers and the economy as a whole will benefit from these plans," Powell said. But for others, loans that may be difficult to repay are not the solution. In this case, direct financial support may be needed. "
On financial support measures, Mr Mnuchin said yesterday that he would support the reauthorisation of measures under the wage protection scheme to provide forgivable loans to companies that maintain operations and keep most workers employed.
But any reallocation of funds needs to be approved by Congress. With the presidential election approaching, the two parties in Congress have not yet reached a consensus on the components of the fiscal stimulus package for a new round of anti-epidemic bailouts, a factor that remains elusive.
Five Fed officials warn of risks of economic recovery call for fiscal stimulus
Several Fed officials still stressed the importance of fiscal stimulus to economic recovery on Wednesday.
With bipartisan negotiations over the new stimulus bill deadlocked, Federal Reserve Chairman Colin Powell continued to call for fiscal support at congressional hearings, saying more stimulus measures may be necessary for economic recovery.
Other Fed officials spoke louder than Mr Powell, and Cleveland Fed President Mestre said stimulus was necessary given that the economy was trying to climb out of the "deep hole".
Chicago Fed President Evans expressed concern that the expected bailout measures may not come. Boston Fed President Rosengren hinted that if there is a new wave of infections, quick action must be taken, probably not until next year.
"the hardest part of the recovery is yet to come," Rosengren said in a speech on Wednesday. He is more pessimistic than his colleagues about how many Americans will return to work in the next 15 months.
The Boston Fed president is particularly concerned about signs of "interference" in commercial real estate. He said there was no shortage of dangers in the industry before the outbreak, and now commercial real estate has been hit by the impact of the epidemic on industries such as hotels and shopping malls.
Federal Reserve Vice Chairman Clarida also stressed in an interview that the pace of recovery so far is stronger than officials expected a few months ago, but the road ahead will be difficult, reiterating financial support will help the economy.
"the US economy is recovering strongly, but we are still in a deep hole," he said. In the long run, the United States needs to return to a sustainable fiscal path, but you don't want to do that when the economy suffers the worst downturn in 90 years. "
Fed officials released new economic forecasts on September 16th, lowering the median unemployment rate for the fourth quarter of 2020 to 7.6% from 8.4% expected in August, and is expected to be 5.5% by the end of 2021.
More than 200000 coronavirus deaths in the United States will be restricted in many European countries
The global outbreak of coronavirus is still of concern. The epidemic situation in Europe is serious. Because of the surge in new confirmed cases, Spain has requested the deployment of troops, France to restrict the public collection of hui, and Britain may be "blocked" for another six months.
With regard to the epidemic in the United States, as of Sept. 22, local time, the number of coronavirus deaths in the United States has exceeded 200000, only 13 days after it broke through the 190000 barrier. Us President Donald Trump admitted for the first time that the 200000 death toll was a "shame", but then repeated the same old tune: "if we don't deal with it properly, 2.5 million people are likely to die."
According to the latest statistics in early September, more than 40, 000 cases of novel coronavirus have been diagnosed among students, faculty and staff on university campuses across the United States. Recently, researchers from the University of North Carolina at Greensboro, Indiana University, the University of Washington and Davidson College predicted that there could be between 1000 and 5000 new cases a day as the school reopened. The best estimate is about 3219 cases a day.
The cumulative number of confirmed cases of novel coronavirus in the UK reached 403551, with an increase of 4926 in the past 24 hours and 41825 deaths, according to figures from the Department of Health on the 22nd. On the same day, British Prime Minister Johnson announced that due to the recent sharp rebound in the epidemic, in order to prevent another outbreak, Britain will tighten epidemic prevention restrictions.
The latest measures include: bars and restaurants must be closed before 10:00 in the evening, employees in retail, indoor catering, taxis and other industries must wear masks, weddings, funerals and other activities set a ceiling on the number of participants, and schools remain closed. people are urged to work from home as much as possible.
Trump said on Sept. 22 that Britain had re-imposed further blockades in response to the coronavirus outbreak, while the United States would not take any measures-on the grounds that "we know how to deal with it."
"the UK is blocking it again, and they just announced it is going to be blocked again," Trump said. We're not gonna do that. We know about this disease and we know how to deal with it. "
Since the outbreak, Trump has repeatedly reiterated that the United States will not impose a blockade, saying it will do more harm than good. Although governors in the United States have the power to restrict business and gathering activities, Trump has been calling on governors to lift restrictions on residents and reopen the economy.
Analyst: the pace of economic recovery has slowed
"the initial recovery in retail sales, industrial production, car sales and employment is indeed roughly V-shaped," said Ian Shepherdson, chief economist at Pantheon Macroeconomics. But it is clear that the pace of recovery has slowed and only retail sales have completed a V-shaped recovery. This is also thanks to the increase in unemployment benefits-at its peak, more than 30 million people received an additional $600 a week in federal unemployment benefits. "
He added that the real estate sector was the only sector of the economy that continued to recover in a V-shaped shape, with economic reports on Tuesday showing that sales of second-hand homes jumped to their highest level since August 2006.
He added: "September and the fourth quarter are not optimistic because Washington focuses on the bipartisan struggle in Congress over the succession of Supreme Court justices. as a result, a new round of fiscal stimulus is less and less likely to be introduced before the presidential election."
Most other analysts take a similar view. They stressed that the decline in the stock market in September was caused by a variety of factors, including a slowdown in growth.
John Normand, head of cross-asset basic strategy at geng Chase (92.74,-1.53,-1.62%), said in a report: "even by coincidence, September has become a month in which most investors generally have reservations about the global economy and markets. These include an initial decline in global growth, rising political risks in the United States and Europe, and a second wave of outbreaks of the coronavirus. The only missing link is the deterioration of international trade relations and possible sanctions. "
Lloyds (1.19,0.00,0.005%), Barclays, HSBC Holdings (18.42,0.07,0.38%) and others rose before the US listing of British banks.
Yamana Gold, Hamoni gold, Jinrose gold, Jintian, Barrick gold and other gold stocks fell.
Nike surged as the company announced better-than-expected revenue and net profit in the first quarter of 2021.
Tesla fell sharply, and Musk, the company's CEO, said it would slash battery costs, although it could take three years for full production.
Johnson (144.44, 0.23, 0.16%) will announce the plan for the final clinical trial phase of coronavirus epidemic miao.
AC Immune SA plummeted. The company announced that its Alzheimer's drug trial had failed.
Pfizer's (36,-0.25,-0.69%) pediatric cancer drug Xalkori new drug application was approved by the U.S. Food and Drug Administration.
Geng Chase plans to transfer $230 billion of assets to Germany during the Brexit adjustment.
Craig-Hallum raised its target price for Western Digital (38.92,2.45,6.72%) from $44 to $62.
Major European stock markets closed higher on Wednesday, with Germany's DAX up 0.33% at 12636.35, Britain's FTSE 1.21% at 5899.91, France's CAC40 up 0.62% at 4802.26, Italy's FTSE 0.11% at 18915.50 and the European Stoxx 50 up 0.50% at 3179.95.
Gold futures fell below the important psychological barrier of $1900 an ounce on Wednesday, closing at their lowest level in two months. The stronger dollar puts pressure on gold prices, threatening the bull market trend of gold futures.
"the strong dollar puts pressure on precious metals," said Jim Wyckoff, a senior analyst at Kitco.com. This week, the recent uptrend in silver has been reversed and the rally in gold has been in jeopardy. "
Gold futures for December delivery on the New York Mercantile Exchange fell $39.20, or 2.1%, to close at $1868.40 an ounce, the lowest closing price since July 22.
December silver futures fell $1.42, or 5.8%, to close at $23.105 an ounce, the lowest closing price since late July.
Crude oil futures closed higher on Wednesday. The data showed that US crude oil inventories fell for the second week in a row, but US WTI crude oil futures failed to reach the $40 mark. Europe has renewed blockades to contain the coronavirus epidemic, causing investors to worry about the weak outlook for crude oil demand.
At the same time, natural gas futures prices soared nearly 16 per cent due to a combination of traffic disruptions caused by hurricanes, floods caused by storms, falling production and strong demand.
The U.S. Energy Information Administration ((EIA)) reported on Wednesday that U.S. crude oil stocks rose for the second consecutive week to 1.6 million barrels in the week ended Sept. 18.
Analysts surveyed by S & P Global Platts expected the figure to fall by 4 million barrels. But yesterday the (API) of the American Petroleum Institute reported that crude oil stocks rose by 691000 barrels last week.
Lukman Otunuga, senior research analyst at FXTM, said: "while inventory data are still important, the larger factors affecting the crude oil market are the coronavirus epidemic and concerns that the outbreak led to a second round of blockades. Crude oil futures are significantly affected by demand-side factors and the state of the global economy. "
(WTI), West Texas Intermediate for November delivery on the New York Mercantile Exchange, rose 13 cents, or 0.3%, to close at $39.93 a barrel.
Natural gas futures for October delivery rose nearly 16 per cent to close at $2.125 per million British thermal units.
London Intercontinental Exchange (97,-1.80,-1.82%) November Brent crude futures rose 5 cents, or 0.1%, to close at $41.77 a barrel.