Latest! The U.S. stock market has come out of a dramatic day! Inflation was prevented but backstabbed by the Fed, and the three major indexes closed sharply under the double pressure

On Thursday (February 10), US stocks came out of a dramatic day, and finally all three major indexes closed sharply lower. As the opening was negatively affected by the inflation report, the three major indexes collectively opened low, but then went all the way higher, and even all turned red during the session. Then St. Louis Fed President Bullard's hawkish remarks once again detonated the market, and the US stock market finally failed to return to the sky, closing sharply in a continuous decline.

The U.S. CPI rose 7.5 percent year-on-year in January, the highest since February 1982, further reinforcing expectations of a rate hike by the Fed, the data showed. The Fed swap shows that the probability of a 50 basis point rate hike in March is about 80%. Meanwhile, the 10-year Treasury yield rose to 2.018 percent from 1.928 percent on Wednesday, breaking through 2 percent for the first time since 2019. The yield on the 2-year Treasury note, which is particularly sensitive to interest rates, rose to 1.493% from 1.346%.

Brad, who has voting power at the FOMC meeting this year, said he supported a cumulative 100 basis point rate hike by early July, including a one-time increase of 50 basis points for the first time since 2000 to counter the worst inflation in four decades.

Chris Low, chief economist at FHN Financial, said: "There is a difference between what any FOMC member says and what the committee does. But if the market expects a 50 basis point hike in March or May, then the likelihood will be higher then. Brad is well aware of this, and he may intend to push the federal fund futures market to reprice to support a quick rate hike. If he made us think so, the Fed would be more likely to do so. ”

Matt Peron, head of research at Janus Henderson Investors, said: "This trend is worrying the market because it could mean a more aggressive policy response from the Fed, which usually puts pressure on the stock market. We expect the market to continue to be volatile in the coming months until inflation stabilizes or the market thinks the Fed is doing pretty much, but not too much. ”

Market Dynamics//

By the close, the Dow was down 1.47 percent at 35,241.59 points; the NASDAQ was down 2.1 percent at 14,185.64 points; and the S&P 500 was down 1.81 percent at 4,504.06 points.

The 11 sectors of the S&P 500 index were wiped out, with the real estate sector falling more than 2.8%, the information technology sector falling more than 2.7%, the utilities sector falling more than 2.6%, the optional consumer sector falling about 1.8%, the industrial, healthcare, and communications sectors falling at least more than 1.4%, the daily consumer goods sector also falling more than 1.0%, and the energy and raw materials sector falling about 0.6%, the relatively minimal decline.

U.S. industry ETFs closed down across the board, with technology industry ETFs down more than 2.6 percent, utility ETFs down more than 2.5 percent, global tech index ETFs and biotech index ETFs down more than 2.4 percent, and global aviation industry ETFs down less than 0.1 percent, the smallest decline.

Hot Stock Performance//

U.S. large tech stocks all fell under pressure, Apple fell 2.36%, Microsoft fell 2.84%, Google fell more than 2%, Meta fell 1.69%, Netflix fell 1.6%, Tesla fell 2.95%, And Amazon fell 1.36%.

Most of the popular Chinese stocks fell, with the Nasdaq Golden Dragon falling 1 percent to close at 8,764. Didi rose 8.84%, Shell rose 6.53%, Pinduoduo rose 1.48%, NetEase fell 4.23%, Weibo fell 2.92%, Tencent fell 2.85%, JD.com fell 2.41%, Alibaba fell 2.13%, Sohu fell 2.1%, Baidu fell 1.28%, and Bilibili fell 1.08%.

All the new car-making forces closed down, with Weilai down 2.87%, Ideal Auto down 2.52%, and Xiaopeng Auto up 4.44%.

Inflation Data//

Biden repeats the same old tune: inflation will ease significantly during the year! However, the American people are pessimistic about this

In the face of high inflation, US President Biden is under a lot of pressure, and two hours after the release of inflation data, he once again repeats the same old tune: inflation will ease sharply during the year.

Inflation at decades-highs has challenged Democrats to retain a congressional majority in the midterm elections, with many citing last year's White House stimulus bill as a key contributor to rising prices, and Biden's recent decline in support.

Biden said in a press release: "While today's inflation data is high, forecasters continue to predict a significant slowdown in inflation by the end of 2022. "Fortunately, we saw positive real wage growth last month and car prices moderated." Last year, car prices accounted for about a quarter of overall inflation. ”

He added: "The government will continue to go all out to win this fight." We will continue to rebuild our infrastructure and manufacturing so that we can make more products in the United States and strengthen supply chains at home. We will continue to fight costs in areas that have hampered families and working people for decades, from prescription drugs to child care and elderly care to energy costs. ”

Over the past few months, american wallets have become increasingly depleted as prices of goods at gas stations and grocery stores have risen, and inflation has evolved into one of the major economic problems for the U.S. government. If wages are not increased proportionally, inflation erodes consumer purchasing power, leading to a decline in real household incomes.

The White House has limited ability to rein in rising oil prices, including tapping into the Strategic Petroleum Reserve, supporting U.S. supply chains and encouraging workers to return to work as soon as possible.

While biden administration-backed investment in U.S. infrastructure could lower prices in the long term, the White House doesn't have many options to curb rising prices in the short term. Still, Biden and Treasury Secretary Janet Yellen have said in recent weeks that they agreed to the Fed's move to tighten monetary policy and raise interest rates to curb inflation.

Investors have raised their expectations for the Fed's tightening policies, with the market forecasting a 50% chance of a 50 basis point rate hike in March, although most economists expect the Fed to adopt a more gradual rate hike strategy, as several officials have said.

The views of American business leaders and ordinary people

Biden said inflation will soon be under control, but U.S. business leaders don't think so. In a survey released Thursday by the Conference Board and the Business Council, nearly 75 percent of chief executives said the upcoming rate hike was unlikely to curb inflation quickly as supply constraints and wage increases would persist.

Dana Peterson, chief economist at the World Federation of Large Businesses, said in a statement: "As business leaders struggle with inflation, labor shortages and a new round of outbreaks, THE CONFIDENCE OF CEOs has declined further at the beginning of 2022. ”

About 40 percent of CEOs surveyed said inflation was unlikely to cool as quickly as the Fed would like because supply constraints were a major source of inflation. 34% of respondents expect wages to still rise due to tight labor markets, and these costs will need to be passed on.

Business leaders' pessimistic views of the inflation outlook are in line with those of ordinary people. A poll conducted by Gallup from Jan. 3 to Jan. 13 showed that nearly 80 percent of Americans are concerned about rising inflation over the next six months. 50% of respondents expect inflation to rise "substantially", while only 9% expect it to decline.

Pessimistic views of inflation also pose a big risk, with consumers changing their behavior if they expect prices to remain high, buying large quantities of goods in advance and amplifying their demand. Companies also hoard supplies and raise wages to retain and attract workers. This can become a self-fulfilling tragic prophecy.

Company news

Tesla's tenth recall in nearly four months! The ability to select speaker sounds is also disabled

The National Highway Traffic Safety Administration (NHTSA) said Thursday that Tesla is recalling 578,607 vehicles in the U.S. Under NHTSA's increasing scrutiny, Tesla has issued ten recalls in the past four months. The recall totaled 578607 units, covering the Model S, Model X, Model Y produced in the U.S. market in 2020-2022 and model 3 produced in 2017-2022. Tesla said it did not find any car accidents, injuries or fatalities related to the recall. NHTSA said the vehicles did not meet the minimum sound requirements for electric vehicles in the federal motor vehicle safety standards. The noise emitted by these electric vehicles when driving is very small, and pedestrians may not know that a vehicle is approaching, increasing the likelihood of a traffic accident.

Coca-Cola's business continues to grow The zero-sugar concept leads the sales category

Beverage giant Coca-Cola On Thursday reported better-than-analyst-expected fourth-quarter revenue and profit. Specific data showed that the company's fourth-quarter revenue was $9.5 billion, up 10% year-on-year, exceeding analysts' expectations of $8.9 billion; adjusted earnings per share were $0.45, down 5% year-on-year, higher than analysts' expectations of $0.41. For the full year, the company's full-year revenue was $38.7 billion, up 17 percent, beating analysts' expectations of $38.1 billion, and adjusted earnings per share were $2.32, up 19 percent, higher than analysts' expectations of $2.29. By product, Coca-Cola's soda business saw sales growth of 8 percent in the fourth quarter and 9 percent for the full year, with zero-sugar Coca-Cola achieving double-digit percentage growth in both quarter and year.

Inflation unencumbered PepsiCo's Q4 earnings report exceeded expectations and announced a 50th consecutive year of higher payouts

Global food and beverage giant PepsiCo released its earnings report before market hours on Thursday, and although the shadow of inflation remained, sales of sodas and snacks after consecutive price increases were still better than expected. According to the company's disclosure, net sales in the Q4 quarter increased by 12.4% year-on-year to $25.2 billion, far better than the market's expectation of $24.2 billion; net profit of $1.322 billion, core EPS of $1.53 slightly exceeded expectations, but fell sharply by 28% from the same period last year, reflecting the impact of inflation on the company's profits. The company revealed that in North America, where inflation is particularly severe, the cost of edible oil, packaging materials and marketing expenses required for the production of extruded snacks such as Q4 sweet potato chips and Chito has increased by 8% year-on-year; the cost of Quaker cereal has also increased by 14%; including freight and commodity price increases, the cost of the beverage business has increased by 37%.

Unilever warns: Inflation will have a huge impact on profits this year, and there may be an improvement in the second half of the year

On Thursday, local time, multinational consumer goods giant Unilever released four quarterly reports and full-year financial reports, announcing strong revenue growth in 2021 while also expressing concern about the inflation shock in 2022. Unilever's overall revenue in the fourth quarter was €13.1 billion, with underlying sales (USG), net of currency, mergers and acquisitions and inflation, growing by 4.9%. The company reported full-year revenue of 52.4 billion euros, and the growth rate of basic sales reached 4.5%, which is also the highest growth rate of the company in the past nine years, of which the impact of price increases and sales volume increases accounted for 2.9% and 1.6% respectively. According to Thursday's report, Unilever's full-year net profit for 2021 reached 6.6 billion euros, a year-on-year increase of 9%, but the underlying operating margin fell 10 basis points year-on-year to 18.4%. It also reflects the impact of inflation in raw materials, energy, transportation and labor wages on the consumer business to this day.

GlaxoSmithKline: Antibody therapy Sotrovaimab is effective against the Omikejong BA.2 subspecies

The latest study released by the British pharmaceutical company GlaxoSmithKline (GSK) on Thursday local time showed that the monoclonal antibody therapy Sotrovimab, jointly developed by the company and Vir Biotechnology, was effective against the Ami kerong BA.2 subspecies. GSK said that based on pseudoviruses and extensive pharmacokinetic data, a dose of Sotorovimab at 500 mg was sufficient to maintain neutralizing activity against the Omikejong BA.2 subspecies. The company revealed that it expects to release preprint data in the coming week, followed by live virus data.

"American version of Huabei" Affirm accidentally leaked financial information in advance The stock price has plummeted by nearly 30% several times

Affirm unexpectedly announced the second fiscal quarter results in advance during the intraday session on Thursday, resulting in several circuit breakers in the stock price, down nearly 30% at one point, after rising more than 10% at one point. According to the earnings report, the "buy-before-pay" company lost $0.57 per share in the second fiscal quarter, with a market-expected loss of $0.35; revenue was $361 million, and the market expected $328.8 million. By the close, the company's share price had narrowed to 21.42%.

This article originated from the Financial Associated Press