On Wednesday, January 3rd Eastern Time, the US stock market closed lower, with the Nasdaq falling for the fourth consecutive trading day and the S&P index falling for the third consecutive day. The minutes of the Federal Reserve's December monetary policy meeting show that officials unanimously believe that the interest rate hike cycle may have ended, but discussions on when to cut rates have not yet begun.
Crude oil futures surged by over 3%. The United States continues to replenish its strategic crude oil reserves (SPR), OPEC promises to maintain unity, Libya's oil fields begin to shut down, and oil prices are supported.
The Iranian Health Minister has revised the death toll from the explosion in Kerman City to 95, not the previously announced 103, due to errors caused by repeated counting.
Federal Reserve officials unanimously believe that the interest rate hike cycle may have ended
But there was no discussion about when to start lowering interest rates
Hong Kong's Wanda News Agency reported that on January 3rd, the minutes of the Federal Reserve meeting showed that Federal Reserve officials unanimously agreed at last December's meeting that the interest rate hike cycle that began in 2022 may have ended.
They pointed out that inflation has slowed down, especially at the six-month annualized inflation rate, and there are signs that the supply chain is returning to normal, and as more people join the labor market, the labor market is beginning to relax.
They also said that raising interest rates above 5% suppressed consumer demand, thereby easing inflation. They did not discuss when to start lowering interest rates. The dot matrix shows that the Federal Reserve plans to cut interest rates three times in 2024.
Federal Reserve Barkin stated that the interest rate decision for March is still far away, and confidence in the inflation path depends on the situation of various data. He is skeptical about whether consumer demand will remain active.
Balgin also mentioned that the possibility of a soft landing for the US economy appears to be higher, but it is not inevitable. He reiterated that the possibility of further tightening policies still exists.
Nick Timiraos, the New Federal Reserve News Agency, stated that the minutes imply the end of interest rate hikes, but did not provide a timetable for rate cuts; Some officials emphasize the risk of excessive tightening.
The Federal Reserve will hold its next FOMC monetary policy meeting from January 30th to 31st.
As of the close on January 3rd, the Dow Jones Industrial Average fell 0.76%, the S&P 500 index fell 0.8%, and the Nasdaq fell 1.18%, marking the fourth consecutive day of decline.
In terms of economic data, there were 8.79 million job vacancies in JOLTs in the United States in November 2023, with an expected 8.85 million. The previous value was revised from 8.733 million to 8.852 million. The number of job vacancies in the United States in November has dropped to the lowest level since March 2021, further proving the cooling demand for labor.
Technology stocks mostly fell
Technology stocks mostly fell, with the TAMAMA Technology Index of Wanda USA falling 0.68%, Apple falling 0.75%, Amazon falling 0.97%, Netflix rising 0.38%, Google rising 0.54%, Facebook falling 0.53%, and Microsoft falling 0.07%.
Tesla plummeted by 4.01%, with its market value evaporating $31.7 billion, equivalent to approximately RMB 227 billion.
Tesla announced that it will release its Q4 2023 financial report after hours on January 24, 2024 (January 25, Beijing time). After the financial report is released, Tesla will hold a performance conference call at 17:30 on the 24th (6:30 am Beijing time on the 25th).
Tesla also stated that Cybertruck may regain eligibility for federal tax credits later in 2024.
Crude oil futures rose more than 3% on Wednesday
Energy stocks collectively rise
Crude oil futures closed higher on Wednesday, with West Texas Intermediate (WTI) futures for February delivery rising $2.32, or 3.3%, to close at $72.70 per barrel.
The Brent crude oil futures for delivery in March rose by $2.32, or 3.1%, to $78.21 per barrel.
According to comprehensive media reports, the Libyan National Oil Company stated in a letter on Wednesday that if Libya cannot meet the demands of protesters, it may have to shut down its largest oil field. The latest news shows that the El Feel oil field in Libya has been closed.
OPEC issued a statement reaffirming its commitment to unity, full cohesion, and market stability, as well as non OPEC oil producing countries (i.e. OPEC+Alliance). The unprecedented cooperation, dialogue, mutual respect, and trust of the alliance will continue to be the foundation of these ongoing collaborations.
On the same day, the US Department of Energy announced that the United States is seeking to deliver up to 3 million barrels of oil in April for backfilling its Strategic Petroleum Reserve (SPR).
US energy stocks collectively rose, with ExxonMobil up 0.86%, Chevron up 1.93%, ConocoPhillips up 1.99%, Schlumberger up 1.27%, and Western Oil up 0.94%.
Popular Chinese concept stocks generally rise
Popular Chinese concept stocks generally rose, with the NASDAQ China Golden Dragon Index up 1.53%, Gaotu Group up 11.77%, Good Future up 5.01%, NetEase up 4.04%, Bilibili up 3.96%, New Oriental up 2.57%, BeiGene up 2.5%, Alibaba up 2.41%, Pinduoduo up 2.27%, Huazhu up 2.23%, and Baidu up 2.04%.
In terms of decline, Jianan Technology fell 5.56%, Shengmei Semiconductor fell 5.41%, Jingke Energy fell 3.12%, and Huanju fell 2.69%.
Zhonggai New Energy Vehicle stocks collectively rose, with NIO Automobile up 0.94%, Xiaopeng Automobile up 1.35%, and Ideal Automobile up 3.32%.
Iranian Health Minister Revises the Death toll from the Kelman City Explosion to 95
According to CCTV News, on the evening of January 3rd local time, Iranian Health Minister Enorahi announced on Iranian National Television that the death toll from the two bombings that occurred in Kerman City on that day was 95 people, not the previously announced 103 people, due to errors caused by repeated counting.
In addition, according to Itsune, the explosion has injured 211 people.
Previously, according to official Iranian media reports, the death toll from the explosion that occurred in Kerman, Iran on January 3rd has risen to 103.
Iran's Supreme Leader Says on the Kelman City Explosion: Enemies Who Make Disasters Will Face Strict Response
In response to the explosion that occurred in Kerman City, Iran on January 3rd local time, Iranian Supreme Leader Khamenei stated that the evil enemy of the Iranian nation has once again created a disaster, but the enemy will face a stern response.
Khamenei also expressed condolences to the families of the victims and hoped that the injured would recover as soon as possible.
Iranian President Lehi: Strongly condemns terrorist attacks against the city of Kerman
On January 3rd local time, Iranian President Lehi strongly condemned the terrorist attack against the city of Kerman. This is another inhumane crime committed by anti Iranian terrorists, and Iranian departments should take all measures to save the injured while quickly identifying the perpetrators and masterminds behind the scenes.
He stated that the Iranian people will continue to fight terrorism until it is eradicated.