8 Sep 2022

The three major U.S. stock indexes closed up collectively last night. As of the close, the Dow closed up 1.4%, the Nasdaq closed up 2.14%, and the S&P closed up 1.83%. The yield on the 10-year U.S. Treasury bond fell 2.507% to close at 3.267, about -17 basis points lower than the yield on the two-year Treasury bond. The fear index VIX closed down 8.44%. Brent crude closed down 5.8%. Spot gold closed up 0.97% at $1,718.45 an ounce. The dollar index remained high, closing at 109.56.

The three major stock indexes opened lower and moved higher. The Wall Street Journal, known as the "New Federal Reserve News Agency," wrote that the Fed appears to be preparing to raise interest rates by another 75 basis points this month, after Fed Chairman Powell publicly promised to reduce inflation even if it would lead to a rise in unemployment. Several officials have also said they want to raise the federal funds rate to near 4 percent by the end of the year, about 1.5 percentage points higher than the current level. The Fed could do this by raising rates in varying sizes at the remaining three Fed meetings this year.

The New York Fed said pressures on global supply chains eased in August, extending the easing observed over the past three months. The drop in August was broad, with lead times falling across all countries in the sample. A reduction in backlogs in the UK also had a significant downside impact on the index. The year-to-date movement of the GSCPI suggests that while global supply chain pressures have been declining, they are still at record highs.

S&P oil analyst Lisa Orme said Iran could add 1 million bpd of oil supply by March 2023. In the EIA Short-Term Energy Outlook report, the global crude oil demand growth rate in 2022 is expected to be 2.1 million barrels per day, compared with 2.08 million barrels per day previously. Federal Reserve Beige Book on Economic Conditions: Economic activity has generally been unchanged since early July, with 5 regions reporting a slight or moderate increase in economic activity and another 5 regions reporting a slight or moderate slowdown in economic activity. Peterffy Peterffy, chairman of Interactive Brokers, said the decline in U.S. stocks was not enough to reflect persistently high inflation pressures, which will prompt the Federal Reserve to keep interest rates high for some time. He told Bloomberg Television on Wednesday that the S&P 500 would not bottom until between 3,300 and 3,500. That means the biggest drop could be as much as 16% from Wednesday's levels

Apple rose 0.93%. Apple officially released the iPhone 14 series to upgrade the camera and add satellite connectivity.

Google rose 2.79%. Google will hold a new product launch conference on October 6, and two new mobile phones and its first smart watch will be unveiled.

Amazon rose 2.67%, and Amazon Cloud Technology helped Nianli Technology create cloud gaming solutions. Tesla rose 3.38%,

Tesla has secured a large order of 50 million euros from German car subscription provider Fleetpool.

Sources from: Investing.com; Reuters.com

Louis Yap

Join me for more Stock Information

Telegram

Malaysia Bursa Channel