Stunning Monday!U.S. stocks have fallen into the bear market, and the panic index rose by more than

14.06.2022

Number of this text: 1538, reading time for about 3 minutes

Guide: The Federal Reserve raised 75 basis points to heating up.

Author | First Financial Fan Zhijing

Figure | Xinhua News Agency

*Foreign concerns to re -ignition, the Dow has fallen by nearly 1,000 points;

*U.S. debt yields upward, and the key yield curve appears upside down;

*Apple closed down 3.8%, a new low since June 2021.

On Monday, the US stocks opened low and low. After the consumer price index (CPI) exceeded expectations in May, the market was concerned that the Federal Reserve was concerned that a significant interest rate hike in curbing inflation would lead to economic recession.

As of the closing, the Dow fell 876.05 points, a decrease of 2.79%, to 30516.74 points, the Na index fell 4.68%to 10809.23 points, a new low since November 2020, the S & P 500 index fell 3749.63 points, down 3.88%. 21.8%, fell into the bear market again. The panic index VIX skyrocketed 22.59%and closed at 34.02.

Rating expectations rose sharply! The key yield curve appears upside down

The US debt yields rose sharply near the end. According to media reports, high inflation will make the Fed ’s interest rate hike expectations this week higher than expected, and at that time, it may approve the interest rate hike of 75 basis points. The 2 -year US bond yield that was closely related to interest rates was 3.41%, which once hit 3.41%, hitting a new high since October 2007. The benchmark 10 -year US bond yield is traded around 3.36%.

Earlier, many institutions predicted that the Fed will raise 75 basis points this week. Barclays wrote in the report that the US CPI rose unexpectedly and continued to show extensive and long -lasting price pressure. The Fed may start to surprise the market to re -establish its stance to fight inflation. If it becomes a reality, 75 basis points will be the largest interest rate hike since 1994.

According to data from the US Department of Labor, the US CPI in May rose 8.6%year -on -year, the fastest increase since December 1981. At the same time, inflation is expected to continue to heat up. The monthly survey announced by the Federal Reserve in New York shows that May consumers in May are expected to rise to 6.6%year -on -year growth rate of inflation in the next 12 months. The median value rises to 9%, and the peak has been refreshed since the investigation was launched.

Yardeni Research president Edyardeni wrote: "The CPI report in May has almost no sign of inflation to reach peak, indicating that the Fed will be tougher and the risk of recession is higher. It can be seen that both investors and consumers have emotions in their emotions. Wheneling. But this time, the general bear market mood may not be a useful reverse -viewing signal as in the past. "

Mohamed El-Elian, chief economist of Allianz Group, said the U.S. inflation rate may rise further, "I am worried that the situation will become worse. At this speed "Elian once again criticized the Federal Reserve to be backward on the issue of inflation, which will eventually lead to decline in the US economy.

Fortune concerns to re -ignition

James Gorman, CEO of Morgan Stanley, said the risk of falling into a decline in the US economy was about 50%. "This inflation is not temporary, and the Fed will inevitably act at a faster speed than they expect. There is a risk of economic recession. I used to think it was about 30 %. Now it may be more like 50 %, but not 100 %. Be cautious. Some are always good. "

If history can be referred to, selling may continue. Data from BESPOKE Investment Group shows that since World War II, US stocks have appeared in 14 bear markets. On average, the S & P 500 index has a median decline of 30%and lasted 359 days. Goldman Sachs warned that if the recession arrives, the S & P 500 Index will fall to 3150 points.

In terms of individual stocks, Oracle rose by 9%after the plate. After the company's fourth quarter, the revenue revenue was US $ 11.84 billion. The market expects to be $ 11.66 billion. After adjustment, the profit per share is $ 1.54. Keep steady growth.

The energy sector was under pressure, and the ExMobil and Chevron fell 4.6%, and Western oil fell 6.3%.

The semiconductor sector performed poorly, AMD fell 8.3%, micro -core technology fell 6.5%, and Qualcomm and Intel fell more than 3%.

Boeing fell 8.8%. According to the insufficient supply of titanium, Boeing decided to suspend the production of its popular Boeing 737MAX aircraft.

Star technology stocks have been heavier. Apple closed down 3.8, the stock price hit a new low since June 2021. Google and Microsoft fell more than 4%, and Amazon fell more than 5%.

The bottom of the international oil prices has risen, and WTI crude oil contracts have risen by 0.22%in recent months to $ 120.93/barrel. Brent crude oil has risen by 0.21%in recent months to $ 122.27/barrel. On the news, Libya Petroleum and Natural Gas Minister Mohammed Aoun said that the country's domestic situation has been upgraded, and the Nissan capacity of crude oil has fallen by 1.1 million barrels, which exacerbates the market's concerns about global energy supply.

- END -