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On September 18th, Dutch chip manufacturing equipment supplier ASML could benefit from the collaboration between Nvidia and Intel, which are jointly developing products for data centers and personal computing, according to Jan Frederik Slijkerman of ING. Intel is a long-time customer of ASMLs lithography equipment, an essential tool in the semiconductor production process. Following Nvidias announcement that it would invest $5 billion in Intel to further their partnership, ASMLs stock price surged nearly 8%. Slijkerman noted that the surge in ASMLs share price reflects investor expectations of increased demand for lithography equipment.According to Kyodo News: The local assembly of Okinawa Prefecture, Japan passed an ordinance on Thursday to impose a 2% accommodation tax to support the local tourism industry.JPMorgan Chase: It is expected that the Bank of England will cut interest rates by 25 basis points in February and May 2026 respectively (the previous forecast time for the rate cut was November 2025 and February 2026).The yield on Britain’s 30-year government bond rose to its highest level since September 15 at 5.502%, up 7 basis points on the day.On September 18th, Michael Pfister of Commerzbank predicted in a report that the Canadian dollar will only gradually appreciate against a weakening US dollar and depreciate against the euro due to the impact of US tariffs on Canadas real economy. He noted that the Bank of Canada is likely to cut interest rates further after cutting them by 25 basis points on Wednesday to support the economy. Pfister believes that the Canadian dollar is likely to remain under pressure until uncertainties related to US-Canada trade are resolved. Commerzbank predicts that the USD/CAD exchange rate will fall from the current 1.3782 to 1.3700 by December. The bank explained that this forecast is based on the "unstable" political situation in the United States, the possibility of significant interest rate cuts, and risks to the Federal Reserves independence, all of which will weigh on the US dollar.

S&P 500 Retreats As Meta Nosedives 24%

Cory Russell

Oct 28, 2022 15:35

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The Tech Sector Is Continued Weak

The S&P 500 dropped as tech stocks kept falling approaching the 3805 support level. A dismal earnings report from Meta yesterday added to the strain on the IT sector's market mood. The Nasdaq, which has a strong tech component, fell 1.6% during today's trade.


Treasury rates kept falling, and the yield on 10-year Treasuries finally dropped below the crucial 4.00% mark. However, as traders concentrated on the sell-off in tech companies, lower Treasury rates did not enough help the S&P 500.


Investors should be aware that the S&P 500's recent good performance was mostly driven by top tech firms like Meta. Bulls of the S&P 500 should be unhappy with the latest market sell-off. Due to the market's increased concentration, it is unlikely that the S&P 500 will see sustained upward momentum as long as mega sized companies are under pressure.


Today's top gainer was Caterpillar, whose shares increased 8% as the company's profits and sales handily above analyst expectations.


The publication of Amazon's third-quarter report has caused the stock to decline by 19% in the post-market session, and it seems that the S&P 500 may face more pressure tomorrow. According to GAAP, Amazon reported sales of $127.1 billion and profits per share of $0.28.


Although the company's GAAP profits exceeded analyst expectations, they also included a pre-tax valuation gain of $1.1 billion from the investment in Rivian's common shares. According to the corporation, fourth-quarter sales will be between $140 billion and $148 billion, up 2-8% over the same period in 2021.


Amazon anticipates reporting operating income of $0 to $4.0 billion for the fourth quarter. The big sell-off in the post-market session is mostly caused by the inadequate guidance.


Traders should be aware that Apple will also report its earnings today, and those numbers might materially affect how the S&P 500 behaves.