1 Sep 2022

​The three major U.S. stock indexes closed down collectively last night. As of the close, the Dow closed down 0.88%, the Nasdaq closed down 0.56%, and the S&P closed down 0.78%. The yield on the 10-year U.S. Treasury note rose 2.67% to close at 3.189, a difference of about -30 basis points from the yield on the two-year Treasury bond. The VIX, the fear gauge, closed down 1.3%. Brent crude closed down 3.66%. Spot gold closed down 0.79% at $1,710.59 an ounce. The dollar index remained high, closing at 108.69.

The three major stock indexes opened slightly higher. ADP employment in the United States recorded 132,000 in August, significantly lower than the expected 300,000. ADP chief economist analysis said August data showed that companies' hiring shifted to a more conservative pace, likely as companies tried to interpret conflicting signals in the economy. We may be at an inflection point from strong job growth to a more normal situation. In addition, wage growth has stabilized at a relatively high level, with annual wage changes of 7.6% year-on-year in August, in line with monthly data since the spring of this year. In early 2021, annual wage growth was around 2%. While wage growth has accelerated, growth has flattened.

Fed voter Mester said that even if the economy is in recession, the Fed must reduce inflation until it drops to 2%. And said the fight against inflation will be a long fight, and the Fed's terminal interest rate is not known precisely yet. European Central Bank Governing Council member Holzmann said there is no reason to "relax" in the fight against inflation, at least 50 basis points of interest rate hike next week, 75 basis points of interest rate hikes should be discussed, "high probability" of recession in parts of Europe .

U.S. commercial crude oil inventories excluding strategic reserves in the week to Aug. 26 were the lowest since the week of June 24, 2022. The U.S. Energy Information Administration said U.S. crude oil production rose 1.7% in June, the highest level since April 2020. Former U.S. Treasury Secretary Summers said U.S. job vacancies data showed it was far from a time to celebrate a soft landing. He also pointed out that even as job openings fell, history was clear that vacancies tended to fall first, followed by the next For 12 months, the unemployment rate was higher. Pointing to fresh lows for U.S. stock indexes, the Morgan Stanley analyst predicted a sell-off in stocks this year. The S&P 500 has fallen sharply since mid-August as investors worried that aggressive monetary tightening by the Federal Reserve could tip the U.S. economy into recession. This month saw a pullback in everything from Treasuries to commodities as central banks stepped up efforts to curb inflation. Investors are anxiously awaiting Friday's jobs data, which will provide more clues on the pace of the Fed's rate hikes.

Apple fell 1.06%, with analyst firm DSCC saying that 82% of the displays in the iPhone 14 series were supplied by Samsung.

Google fell 0.69%. The media said that Google's third-generation Tensor processor will be foundry by Samsung, using 3nm process technology.

Amazon fell 1.52% as Amazon Cloud Technology launched a second region in the Middle East.

Tesla fell 0.75%. Tesla's charging network is being adapted to domestic third parties and will open supercharging stations in due course.

Meta rose 3.67%. In the first half of the year, the number of downloads of metaverse games worldwide has exceeded 110 million.

Sources from: Investing.com; Reuters.com

Louis Yap

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