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On January 14, local time in the United States, dragged down by bank stocks, the Dow performed poorly, hitting a new low since December 22, 2021, and constituent JPMorgan Chase closed down more than 6%. Tech stocks rose en masse, boosting the NASDAQ.
JPMorgan Chase CEO Dimon said on a Four Seasons call that there may be 6-7 rate hikes in 2022 and warned that policy tightening may not be as "mild and sweet" as expected.
Tech stocks boost the NASDAQ
On January 14, local time in the United States, the three major U.S. stock indexes rose and fell, with the Dow falling 0.56% at 35911.81 points; the S&P 500 index rising 0.08% at 4662.85 points; and the NASDAQ up 0.59% at 14893.75 points. This week, the Dow fell 0.88 percent, the S&P 500 0.3 percent and the NASDAQ 0.28 percent.
On January 14, local time in the United States, technology stocks rose collectively. Among them, Netflix rose 1.25%, Meta rose 1.66%, Microsoft rose 1.77%, Tesla rose 1.75%, and fell 6.75% in the last trading day.
Most of the financial and securities sectors fell. Among them, Goldman Sachs fell 2.51%, Citi fell 1.21%, Morgan Stanley fell 3.59%, and JPMorgan Chase fell more than 6%.
According to the earnings report, JPMorgan Chase reported mixed results in four quarters: the company's quarterly revenue and profit exceeded expectations, but the decline in transaction revenue exceeded analysts' expectations, and commercial loans and consumer loans both fell from the same period last year.
Energy stocks rose across the board. Among them, Conoco Fabriel rose 3.74%, Schlumberger rose 4.52%, and Western Oil rose 3.95%.
Popular Chinese stocks have mixed ups and downs. Melco Boya Entertainment rose 16.6%, Ucommune Factory rose 15.38%, Canaan Technology rose 11.37%, Gaotu Group rose 9.39%, Andyo Shadow Rose 6.46%; in terms of declines, Micro Loan Network fell 20.27%, Dingdong Grocery Fell 15.3%, and Tianyan Pharmaceutical fell 8.32%. Chinese new energy vehicle stocks rose collectively, with WEILAI Up 1.51%, Xiaopeng Motors up 4.59%, and Ideal Auto up 1.17%.
JPMorgan CEO: Raise interest rates 6-7 times during the year
On Friday, January 14, Diamond, CEO of JPMorgan Chase, the largest U.S. bank in asset value, said on a Four Seasons call that it should be prepared for the Fed to raise interest rates more than the market currently expects, and warned that policy tightening is not necessarily "dovish and sweet" as expected.
Against the backdrop of soaring inflation, Dimon believes that "the Fed is likely to raise interest rates more than four times, maybe six or seven times." He expected rate hikes to exceed the implied curve, but did not specify when a maximum of seven rate hikes would occur.
On January 14, EST, New York Fed President John Williams said that the Fed is "approaching" the time to decide to raise interest rates, and that it has started the process of adjusting monetary policy, and the next step will be to raise interest rates gradually.
In his speech, he said the Fed would follow the path of the data-driven federal funds rate, the primary monetary policy tool.
Williams expects U.S. economic growth to slow to 3.5 percent in 2022 from last year's forecast of 5.5 percent. At the same time, U.S. inflation will fall back to around 2.5 percent. As for the rapid spread of the Omicron variant in the United States, Williams said that this will slow down the US economy in the coming months. (Image from Wind)
EDIT: Leaf Pine