On Tuesday (October 3), the Hong Kong stock market opened weaker on the first day after the holiday, the Hang Seng Index closed down 2.69%, the Hang Seng Technology Index fell 2.63%, and China Evergrande resumed trading up about 28%. In addition, stock markets across the region fell. In the early morning of the 4th, Beijing time, the three major indexes in the United States collectively closed down. The Nasdaq fell 248.3 points, or 1.87%, ending a four-game winning streak. The S&P 500 fell 58.94 points, or 1.37%. The Dow fell 430.97 points, or 1.29%, in its worst day since March and erased nearly all of its gains for the year.
The VIX, the "fear index", briefly crossed the 20-point level for the first time since May. The previous trading day also active technology stocks killed, the star stock Tesla market value evaporated 16.1 billion US dollars (about 117.6 billion yuan) overnight.
The US 10-year Treasury yield briefly rose above 4.8 per cent and the 30-year bond yield hit 4.925 per cent, both the highest levels since 2007, after upbeat US job market data and Fed officials continued to reinforce the central bank's "hawkish" stance.
Tech stocks turn on the underlings
In the last trading day, technology stocks represented by Nvidia were also active; Most have quieted down in the latest trading day.
On Tuesday, large technology stocks in the United States fell across the board, with Amazon down more than 3%, Tesla and Microsoft down more than 2%, Google and Facebook down more than 1%, and Apple and Netflix down slightly.
Among them, Tesla's market value evaporated 16.1 billion US dollars (about 117.6 billion yuan) overnight.
Despite the weak performance of technology stocks in the secondary market, many processes are moving forward.
In the case of the AI circuit, the latest news revealed that OpenAI competitor Anthropic is in talks with Google and other companies to raise $2 billion. Amazon will build an AI-powered chatbot and plan to integrate it into the search bar of Amazon's website to optimize customers' search experience on its e-commerce site. The chatbot is in an internal testing phase and could launch as soon as January.
The hot chip industry also broke the latest progress. Gelsinger, Intel's chief executive, said the company had a strong performance in the quarter, with revenue exceeding the midpoint of its guidance range, and would announce fab plans before the end of the year.
Tesla China revealed that the Tesla Model Y model has evolved again and landed in the Chinese mainland market with a continuous and advanced appearance. As a smart utility SUV, the Tesla Model Y continues to evolve in terms of interior, performance, and appearance. On the interior, the newly increased color atmosphere light, the instrument table decoration board selected scientific and technological textile materials; Externally, the updated design of 19-inch twin Star wheels reduces wind resistance.
In addition to technology stocks, the recent performance of US bank stocks has continued to weaken. On Tuesday, Goldman Sachs fell more than 3%, Morgan Stanley, Bank of America and Wells Fargo fell more than 2%, Citigroup fell more than 1% and jpmorgan Chase fell slightly.
Chinese stocks fell broadly
"Black Tuesday" was also reflected in the US stock market. Most popular Chinese stocks fell on Tuesday, with the Nasdaq Gold Dragon Index down 2.24%.
The ninth city of the game company fell more than 23%, becoming the core strength of the leading stocks. Many others fell by more than 10%. For example, the heart car fell more than 19%, the United fell more than 11%, Jinsheng amusement fell more than 10%.
Other stars in the general stock companies, Niu electric fell more than 7%, NetEase Youdao, Dada Group, Tuniu, Yunmi technology, 21Vianet fell more than 5%, and Ctrip, iQiyi, Tiger Securities, Qudian and so on fell more than 4%.
China concept new energy vehicle stocks were lower across the board, with NIO down 2.05%, Xiaopeng Automobile down 3.86% and Ideal Automobile down 1.56%.
A few days ago, a number of new energy vehicle companies announced the delivery and sales in September. Ideal Car delivered a total of 36,606 new cars in September, an increase of 212.7% year-on-year, and a new high in a single month. Many new forces, including Zero Run, NiO, Xiaopeng, polar Krypton and Nezha Automobile, sold between 12,000 and 15,000 vehicles in September.
Us long-dated bond yields are at their highest since 2007
The seesaw effect between stocks and bonds is becoming more pronounced. Us bond yields rose again, and long-term bond yields continued to rise significantly relative to each other.
Specifically, the 2-year Treasury yield, which is more sensitive to monetary policy, rose as much as 4 basis points to 5.15 percent, reversing losses since Wednesday.
The 10-year yield rose more than 13 basis points to above 4.80 percent, matching the 30-year yield, which rose 15 basis points to 4.95 percent, to its highest level in 16 years since 2007. Bridgewater Dalio predicts that the 10-year Treasury yield, "the anchor of global asset pricing," will rise to, or even break, the 5 percent mark.
The 5-year Treasury yield rose nearly 9 basis points to above 4.80 percent, its highest since July 2007. The yield on 30-year Treasury inflation-protected Securities (TIPS), a measure of real interest rates, rose above 2.5 per cent, the highest since 2008. The inversion of the key 2-year / 10-year Treasury yield narrowed to 35 basis points, the narrowest since March this year. The average 30-year fixed mortgage is nearly 8%.
Some analysts pointed out that in addition to the rising outlook for the Federal Reserve to raise interest rates, the widening federal budget deficit will cause the supply of bonds to exceed demand, thus requiring higher yields to attract investors to hold bonds, which has led to high yields for days.
Not only U.S. Treasuries, but also the euro zone's benchmark 10-year German Bund yield rose more than 4 basis points to 2.97 percent in late trading, nearing its highest since July 2011, when it hit 2.98 percent on Thursday. The 2-year yield fell 2 basis points to 3.21 percent after hitting 3.39 percent in early July, its highest since 2008.
The Goldman Sachs report points out that excluding the extremes in 2020, the spread between the S&P 500 and the real 10-year Treasury yield has reached its widest in nearly two decades. That means investors will earn less on their holdings than they would on 'safe haven' assets like U.S. government bonds, a situation that could limit stocks' ability to absorb further increases in interest rates.