On Friday local time, the "hawkish" signal released by the Federal Reserve on the previous trading day was gradually digested by the market, and all three major US stock indices will recover their losses, with the Nasdaq rising by over 2%. As of the close, the Dow rose 391.16 points, or 1.15%, to 34283.10 points; The S&P 500 index rose 67.89 points, or 1.56%, to 4415.24 points; The Nasdaq rose 276.66 points, or 2.05%, to 13798.11.
In terms of sectors, large technology stocks and semiconductor sectors saw significant gains. Among them, Microsoft's revenue rose by over 2% and its stock price reached a historic high; TSMC rose by over 6% and its net income in October reached its highest level in a single month.
In addition, the stock price of renewable energy company Prague Energy plummeted by over 40%, becoming the latest clean energy company to crash.
The three major indices recovered their decline
On November 10th, the market gradually digested the "hawkish" signals released by the Federal Reserve, and all three major US stock indices recovered their losses from the previous trading day. As of the close, the Dow rose 391.16 points, or 1.15%, to 34283.10 points; The S&P 500 index rose 67.89 points, or 1.56%, to 4415.24 points; The Nasdaq rose 276.66 points, or 2.05%, to 13798.11.
Large technology stocks generally rose, with Microsoft closing up 2.49% and its stock price reaching a historic high; Netflix, Tesla, Apple, Amazon, and Meta all rose by over 2%, while Google rose by over 1%.
The semiconductor sector was among the top performers, with TSMC rising by over 6%. In October, its net income was NT $243.2 billion, an increase of 34.8% month on month and 15.7% year-on-year, setting a new monthly high; Chaowei Semiconductor and Asma rose by over 4%, while NVIDIA and Intel rose by over 2%.
Popular Chinese concept stocks fluctuated, with the Nasdaq China Golden Dragon Index rising 0.47%. Manbang and Futu Holdings rose by over 1%, Vipshop rose by nearly 1%, while NetEase, Baidu, Pinduoduo, JD.com, and Alibaba rose slightly; Xiaopeng Automobile fell nearly 4%, NIO fell more than 3%, Ideal Automobile, Tencent Music, Weibo fell more than 1%, and iQiyi and Bilibili slightly declined.
Atlanta Fed President Raphael Bostic stated that policymakers do not need to further raise interest rates to bring US inflation back to target levels. This will take some time, "Bostek said on Friday." I believe we can achieve the 2% target without taking any further action
Zhu Bin, Chief Analyst of Huafu Securities Strategy, said that the interest rate hike cycle of European and American central banks has entered the second half, and the hike may be nearing its end. However, it may be too early to cut interest rates because they are still facing significant risks of "stagflation". The risk of "stagflation" in the European and American economies is constantly increasing, and the pressure of "dilemma" faced by their monetary policies is also increasing.
Prague Energy plummeted by 40%
In terms of focus stocks, the stock price of renewable energy company Prague Energy plummeted by over 40%, becoming the latest clean energy company to crash.
After Thursday local time, Prague Energy released its third quarter financial report. Data shows that during the reporting period, the company achieved a revenue of 199 million US dollars, more than 23 million US dollars lower than expected; The net loss was 283 million US dollars, compared to 171 million US dollars in the same period last year; The diluted loss per share was $0.47, higher than the market expectation of $0.31.
Plague Energy stated that the severe hydrogen shortage is the main reason for the company's poor performance. The shortage of hydrogen has had a negative impact on service costs and also affected the timing of operational equipment upgrades. In addition, inflation factors cannot be ignored.
Chris Dendrinos, a capital markets analyst at Royal Bank of Canada, analyzed that Prague Energy is expected to require over $750 million in funding over the next 12 months, and the company's management believes that profit margins will improve next year. However, currently we believe that the cautious approach is to leave the field and wait
The UK economy is still struggling with high inflation in place
According to data released by the Office for National Statistics on Friday (November 10th), the UK economy stagnated in the third quarter, unchanged from last month.
In the three months to the end of September, the UK's Gross Domestic Product (GDP) changed by 0%, compared to a 0.2% month on month positive growth in the previous quarter. The details of the data show that GDP has indeed decreased slightly by 0.02%, even if the number shows no change after rounding, "said Paul Dales, chief economist at consulting firm Capital Economics.
British Chancellor of the Exchequer Jeremy Hunter believes that high inflation remains the "biggest obstacle to economic growth" in the UK, with the Consumer Price Index (CPI) remaining at 6.7% year-on-year in September. The best way for the current sustained economic growth is to stick to our plan and combat inflation, "Hunter said after the data was released." The autumn statement will focus on how to unleash investment, put people back to work, and reform public services to restore healthy economic growth
As of August, the Bank of England has raised interest rates 14 times in a row. Against the backdrop of high inflation and economic stagnation, the Chief Economist of the Bank of England, Huw Pill, expressed concern about the potential adverse impact of maintaining high interest rates for the long term and warned of the possibility of an excessive slowdown in the economy.
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