On the 11th local time, the three major US stock indexes closed up for the fourth consecutive day. By the close, the Dow was up 0.19%, the S&P 500 was up 0.43%, and the Nasdaq was up 0.71%.
The Fed minutes showed all members agreed the central bank could "proceed cautiously"; Fed officials generally viewed the risks to the target as more bidirectional; Agreed that interest rates should remain limited for a certain period of time. Most Fed officials thought one more rate hike would be appropriate.
The US producer price index (PPI) rose to 2.2 per cent in September from a year earlier, more than expected and previously reported; Core PPI rose to 2.7 per cent in September from a year earlier, beating expectations and the previous estimate, mainly due to higher energy costs.
U.S. President Joe Biden will meet with a number of corporate ceos at 16:30 Eastern Time on October 12 to discuss economic policy.
Investors continue to assess the ongoing Israeli-Palestinian conflict. U.S. Treasury Secretary Janet Yellen said on Wednesday that the Biden administration has not ruled out imposing new sanctions on Iran as a result of renewed conflict in the Middle East, but no decisions have been made. In a speech Tuesday, U.S. President Joe Biden said the United States stands with Israel, "and the United States will make sure that Israel will have everything it needs to respond to attacks by Hamas." So far, more than 2,300 people have been killed on both sides.
Fed minutes out
At 2 p.m. local time on Wednesday, the Federal Reserve released the minutes of its last monetary policy meeting.
According to the minutes, all members agreed that the Fed could "proceed cautiously"; Fed officials generally viewed the risks to the target as more bidirectional; Agreed that interest rates should remain limited for a certain period of time. Most continued to see upside risks to inflation; Participants said inflation was "unacceptably high" and more evidence was needed to be confident that price pressures were subsiding.
On the question of whether more rate hikes were needed, the minutes showed that most Fed officials thought one more rate hike would be appropriate, with some wanting the debate to shift from "how high" to "for how long." Participants expected that data to be released in the coming months would help clarify the extent to which the process of easing inflation was continuing and that the labor market had reached a better balance between demand and supply.
In terms of the economic outlook, the minutes show that real GDP has been growing steadily and has been more resilient than expected. However, participants also noted that they expected real GDP growth to slow in the near term. Many participants saw continued downside risks to economic activity and upside risks to the unemployment rate, including the long-delayed effects of financial tightening, the impact of trade union strikes, slower global growth, and continued weakness in commercial real estate. A "large majority" of participants continued to view the future path of the economy as "highly uncertain."
The minutes also showed that the staff's economic forecasts for the resilience of consumer and business spending were stronger than they had forecast in July; The Fed staff expects GDP growth for the rest of 2023 to be somewhat subdued by the UAW strike, the effects of which will be eliminated in 2024; Several participants noted that balance sheet reduction was likely to continue "for some time" even after rate cuts began.
Participants expected real GDP growth in the United States in 2024 to 2026 to be lower, on average, than this year, and to be lower than participants' estimates of potential output growth, which would be dampened by the lagged effects of monetary policy actions in the coming years. Inflation, as measured by aggregate and core personal consumption expenditures, is expected to reach about 3.5% by the end of 2023. As demand and supply in product and labor markets continue to be better aligned, inflation is expected to continue to decline over the next few years.
The Fed decided to skip a rate hike at its last meeting, deciding to hold rates at 5.25% to 5.5% but signaling that further increases are likely.
U.S. stocks closed higher for a fourth straight day
On the 11th local time, the three major US stock indexes closed up for the fourth consecutive day. By the close, the Dow was up 0.19% at 33804.87; The S&P 500 rose 0.43% to 4,376.95. The Nasdaq rose 0.71 percent to 13,659.68 points.
Treasury yields continue to fall. The yield on the benchmark 10-year US Treasury fell more than 9 basis points to 4.56 per cent.
The Bank of England's Financial Policy Committee said on Tuesday that valuations of U.S. technology stocks may be too high given the current macroeconomic backdrop and soaring interest rates.
"Given the impact of rising interest rates and the uncertainties associated with inflation and growth, valuations of some risk assets appear overvalued, increasing the likelihood of a sharper correction in prices if risks to growth are to the downside," the Bank said.
"Risk asset prices have declined, with risk premiums for risk assets in many advanced economies around or above the middle of their historical distributions, but some measures of risk premiums for U.S. equities remain within the lower quartiles of their historical distributions, driven primarily by the continued strength of the U.S. technology sector," the boe said. In addition, better-than-expected economic activity in the US has helped to push down risk premiums in the US relative to other advanced economies."
In terms of economic data, the US producer price index (PPI) in September rose to 2.2 per cent year-on-year, exceeding expectations and the previous reading (both 1.6 per cent). Core PPI rose to 2.7 per cent year-on-year in September, also beating expectations of a 2.3 per cent increase from 2.2 per cent, mainly due to higher energy costs. Month-on-month PPI growth eased to 0.5 per cent in September, but was still above market expectations of 0.3 per cent. On Thursday, U.S. investors will get the September consumer price Index report, which could be a more significant market mover than the PPI.
Biotech company Tempest surged 3,972 percent
In sector terms, eight of the 11 major S&P 500 sectors rose and three fell. The real estate sector and utilities sector led the gains with gains of 2.01% and 1.63%, respectively, while the energy sector and consumer staples sector led the declines with losses of 1.35% and 0.64%, respectively.
Large tech stocks mostly rose, Nvidia up more than 2%, Facebook parent Meta, Amazon, Google A up nearly 2%, Intel, Microsoft up more than 1%, Apple up slightly; Netflix fell nearly 2 percent, while Tesla fell slightly.
On the news, Tesla has been questioned by the market due to the decline in deliveries in the past few days, and analysts have begun to update their attitudes on the company's stock price this week. Ubs on Tuesday cut its 12-month price target on Tesla shares to $266 from $290. On the same day, Jeffery also lowered his price target on Tesla's stock, from $265 to $250. The firm also expects Tesla to report third-quarter revenue of $23.87 billion and earnings per share of 64 cents. Tesla will report third-quarter earnings and revenue next Wednesday (Oct. 18).
Microsoft said it received a notice from the Internal Revenue Service (IRS) that it was required to pay back taxes totaling $28.9 billion from 2004 to 2013, plus penalties and interest. The company will appeal the IRS's tax audit findings.
Amazon Web Services (AWS) said on Oct. 11 that it will invest about $5.88 billion in cloud computing in South Korea by 2027.
Biotech company Tempest Therapeutics, Inc. Shares surged 3,972.53 percent to $9.77. Tempest is a clinical-stage oncology company that combines tumor-targeting and immune-mediated mechanisms to develop small molecules that may have the potential to treat a wide range of tumors. Tempest recently announced the results of the latest positive data obtained in the clinical trial of its development of "TPST-1120". TPST-1120 is an oral, selective PPARα small molecule antagonist.
Data from a globally randomized Phase 1b/2 clinical trial published in April this year showed that TPST-1120 showed significant improvement in objective response rate (ORR) and demonstrated a favorable safety profile in first-line treatment of patients with unresectable or metastatic hepatocellular carcinoma (HCC).
In the Phase 1b/2 clinical study, TPST-1120 formed a "triple therapy regimen" with atezolizumab and bevacizumab, which was randomized compared to a control group with only atezolizumab and bevacizumab "standard therapy regimen."
In its latest statement, Tempest said that Triple had improved across several categories, confirming its positive preliminary results in April. Specific data showed that the confirmed objective response rate (ORR) was 30% in the triad and 13.3% in the control group.
"A comprehensive analysis of more mature clinical data suggests that early - and mid-stage analyses of triple therapy have a greater benefit than standard treatment alone, presumably due to the mechanism of action of TPST-1120," said CEO Stephen Brady.
On the same day, Tempest also announced a so-called "poison pill" for shareholders' equity, which will only be available to shareholders if an outside entity offers to buy 10% or more of the company's outstanding common stock. It is reported that the "poison pill" is in response to a potential takeover threat.
Exxon Mobil fell 3.59% on news that the company will buy Pioneer Natural Resources for $253 per share, which will give the company about 16 billion barrels of oil equivalent in the Permian Basin. At the same time, the transaction will immediately add $5 billion to the company's annual free cash flow.
International oil prices fell on the 11th. Light crude for November delivery fell $2.48, or 2.88%, to settle at $83.49 a barrel on the New York Mercantile Exchange by the close. London Brent crude for December delivery fell $1.83, or 2.09 per cent, to settle at $85.82 a barrel.
Popular Chinese stocks rose, shell rose more than 3%, New Oriental, Bilibili, NetEase rose more than 2%, Futu Holdings, Tencent Music, Ideal car, NiO rose more than 1%, Alibaba, Ctrip, Xiaopeng Automobile, Jingdong and other small gains.