Source: China Fund News
Late at night, the US stock market ushered in a storm of plunge. But surprisingly, both NASDAQ and Tesla have achieved big reversals.
The NASDAQ fell nearly 3 percent at one point, but eventually closed higher, tesla fell 4 percent, but rebounded more than 7 percent, eventually rising more than 3 percent.
The voices of the two big men are an important reason for the intraday sharp decline in the US stock market. On the same day, Powell insisted that the Fed would stop high inflation from continuing. The CEO of Damo warned that in addition to raising interest rates four times, the Fed's policy may be more aggressive.
And even though the broader market didn't perform well, vaccine stocks surged on Monday, up as much as 27 percent. On the same day, the good news came from the Omicron vaccine, and the two giants spoke out. Pfizer said the vaccine for Opmiqueron will be ready in March, and giant Moderna said the vaccine is about to enter the experimental stage.
Nasdaq reversed, huge earthquake nearly 3%
Tesla also reversed gains, rebounding 7% during the session.
Under the influence of multiple bearish effects such as the intensification of interest rate hike concerns and the voice of Powell and the CEO of Damo, the Dow fell 592 points at one point and the Nasdaq fell nearly 3% on Monday. The S&P 500 also fell 2% at one point.
However, the three major stock indexes bottomed out and rebounded, the Dow narrowed its decline near the end of the session, and finally fell only 162.79 points, and the Nasdaq closed in a big reversal.
By the close, the S&P 500 was down 0.14 percent at 4,670.29 points; the Nasdaq Composite was up 0.05 percent at 14,942.83; and the Dow was down 0.45 percent at 36,068.87.
Under the concern of the Fed's interest rate hike, the US Treasury yield soared again, rising below 1.8% at one point, and the US stock technology stocks were under serious pressure.
On Monday, most of the big tech stocks fell, with Meta down 1.12 percent, Amazon down 0.66 percent, Netflix down 0.22 percent, but Apple up 0.01 percent.
The decline in large technology stocks was originally deeper, but as the US Treasury yield fell, many technology stocks bottomed out and rebounded, and some technology stocks achieved a big reversal to close up.
On the same day, Tesla fell more than 4% intraday, but it closed up more than 3%. On that day, Tesla's intraday amplitude reached 7.7%.
The CEO of Xiaomo warned that not only will the rate be raised four times, but the Fed will be more aggressive
The heavy warning of the capital market tycoon is one of the important factors affecting market confidence.
On the same day, JPMorgan Chase CEO and chairman Jamie Dimon noted that the Fed could make a more aggressive rate hike.
He also noted that "inflation could be worse than they thought, they raised rates more than people thought, and I would be personally surprised if it were just four hikes." ”
But he is not pessimistic about economic growth, he believes that the United States will have the best growth since the Great Depression this year, and next year will be quite good. He said his confidence in economic growth comes from the strong balance sheets of U.S. consumers.
"U.S. consumers have never had a better balance sheet, spending 25 percent more now than they did before the pandemic, and debt service ratios better than they've been in the 50 years since records," Dimon noted. ”
Earlier, Goldman Sachs economists also predicted that the Fed would raise interest rates four times this year.
Powell's re-election hearing was a resounding voice:
The Fed will prevent high inflation from persisting
On Monday, Fed Chairman Jack Powell, who was nominated for four years in the United States, attended the nomination confirmation hearing.
Tom Porcelli, chief U.S. economist at Rega Capital Markets in New York, said the market's attention will be focused on the state of policy and his views on where it is headed.
At this hearing, Powell also made a lot of heavy remarks.
Powell stressed that the Fed will prevent high inflation from persisting. The Fed's policy must remain broad and forward-looking.
"Despite the ongoing pandemic, the economy is still rapidly strengthening, which has led to persistent supply-demand imbalances and bottlenecks, which in turn have led to higher inflation," he said in his speech. We know that high inflation takes a toll, especially for those who cannot afford high prices for necessities such as food, housing and transportation. We are firmly committed to achieving the statutory goal of maximizing employment and price stability. We will use our tools to support the economy and a strong labor market, and to prevent higher inflation from becoming entrenched. ”
Powell's statement on inflation has increased market concerns about the Fed's tightening of policy, and the performance of the stock market has also been affected to some extent.
In addition to inflation, Powell also mentioned something about economic growth. He said he is committed to achieving the goal of maximizing employment and stabilizing prices. Tools will be used to support the economy and a strong job market. The post-pandemic economic situation will be different, and the Fed will have to adapt to these changes.
Vaccine stocks skyrocketed, up as much as 27%
600 billion giant soared 9%
The epidemic has accelerated in Europe and the United States, and the US stock market has been greatly shaken by the emotional impact, but the vaccine stock has ushered in a sharp rise.
ADMP surged 27 percent, Moderna surged 9 percent, Pfizer partner BioNTech surged nearly 9 percent, and Pfizer also rose nearly 1 percent.
Among them, Adamis Pharmaceuticals (code ADMP), which has the highest increase, announced on the same day that it submitted a fast-track application to the US FDA for the treatment and prevention of new crown pneumonia.
The market value of giant Moderna rose by $8.046 billion that day, or about 51.3 billion yuan. As of the close, its market value reached $94.754 billion, or about 600 billion yuan.
On the news side, Moderna raised its sales forecast for 2022 and said that the vaccine that will target Omikejong is about to enter the trial phase.
Moderna said Monday it was studying a vaccine booster for the Omicron variant and would launch it this fall. Stéphane Bancel, ceo of the company, said, "The reinforcing needle for Omilon will soon enter clinical trials, and Moderna is discussing whether other ingredients need to be added to enhance the antiviral effect." ”
In addition, Moderna has signed vaccine pre-purchase agreements with the United Kingdom, South Korea and Switzerland this fall, with a total advance payment worth up to $18.5 billion. The company's CEO also noted that the company could offer 2 billion to 3 billion doses of booster injections this year.
The Omicron vaccine is coming
Pfizer: March will be ready
In addition to giant Moderna, giant Pfizer also announced good news about the Omicron vaccine on Monday.
On Monday, PFE.US CEO Albert Bourla said a COVID-19 vaccine against the Aumechjong variant would be ready in March, and the company had already begun production.
Bourla said the vaccine will also target other variants that are circulating. He noted that it was unclear whether a vaccine against Ami kerong was needed or how it would be used, but Pfizer will have some doses ready and some countries want to do so as soon as possible.
He also said that Pfizer's vaccine productivity has increased significantly, and it is absolutely not a problem to switch production immediately.