Big Bull Securities | U.S. Oil plunged nearly 5%, losing $100! Apple and Tesla fell 630 billion

Late at night, the international oil market is not calm.

On Wednesday, IEA Director-General Fatih Birol said on Twitter that the IEA would release 120 million barrels of oil reserves from emergency reserves. It is reported that of the oil released this time, the United States released 6 million barrels, which is part of the US Strategic Petroleum Reserve.

In addition, the unexpected increase in U.S. crude inventories has also pushed oil prices downward. The EIA report released Wednesday showed that domestic crude oil production in the United States increased by 10,000 barrels to 1.18 million barrels per day last week. Commercial crude oil inventories excluding strategic reserves increased by 2.421 million barrels to 412.4 million barrels, an increase of 0.6%.

On the same day, the energy giant was also "interviewed", which also made the market have expectations of supply growth. Foreign media broke the news that on Wednesday, the ENERGY INVESTIGATION Committee of the US House of Representatives questioned the CEOs of six companies, including ExxonMobil, BP, Chevron, and Shell US Branch, with an interrogation time of up to 6 hours. Frank Parlon, chairman of the U.S. Energy and Commerce Council, believes that these companies have chosen to keep production low to maintain high profits, which puts consumers under pressure. In addition, the Democratic Party of the US Congress has also accused some oil giants of taking advantage of the Russian-Ukrainian conflict and the soaring price of crude oil to make huge profits at the expense of American drivers.

Under the influence of multiple bearishness, US oil once fell more than 6%, closed down nearly 5%, and the price has fallen below the $10 mark.

Cloth oil also fell nearly 5%.

The Fed minutes send more hawkish signals

A single rate hike of 5 basis points if necessary

There are also big things on the stock market side. On Wednesday, the Fed released its latest minutes, which were more hawkish, not only hinting at a 5 basis point hike at least once, but also pointing to a monthly balance sheet reduction cap of $9.5 billion.

With regard to policy direction, the minutes showed that participants felt that it would be appropriate to quickly shift the stance of monetary policy toward neutrality. It was also noted that, depending on developments in the economic and financial situation, there might be justification for a policy stance of austerity.

In terms of interest rate hikes, the Fed minutes showed that many attendees noted that it would be appropriate to raise the target range by 5 basis points or more at future meetings, especially if inflationary pressures continue to rise or intensify. Many Fed officials say it may take 5 basis points for 1 or more rate hikes.

The minutes also show that if it were not for the Ukraine conflict, many Fed members would likely demand a 5 basis point rate hike in March.

In terms of balance sheet reduction, the minutes noted that participants agreed that balance sheet cuts would play an important role in strengthening the monetary policy stance and expected that it would be appropriate to start the process at the upcoming meeting, possibly as early as May. Reducing the $9.5 billion asset cap per month may be appropriate. THE FOMC supports phased adjustments over 3 months or moderately longer to reach the upper limit of the scale reduction.

In terms of the economic outlook, the minutes showed that participants also pointed to downside risks to the economic outlook, including the risk of Russian military action, the overall tightening of the global financial environment, and the risk of a long-term rise in energy prices.

On the inflation side, the minutes show that participants agreed that uncertainty about the path of inflation has increased and inflation risks have risen. Some participants argued that the upside risks to inflation associated with the conflict in Ukraine appeared to be greater than the downside risks to growth.

Chris Zaccarelli, principal investment analyst at the Independent Advisors Alliance, believes the $9.5 billion-a-month cut target is a "good start," but the Fed may need to cut spending at a faster pace to fight inflation, according to Kim, Whoe- At the current rate, it may take more than 5 years (or even up to 8 years) to liquidate all the securities held. Before that happens, we are likely to hit a recession, which could force the Fed to add its balance sheet again, so market distortions could last a long time.

Nasdaq falls more than 2%

Apple and Tesla fell 63 billion

The announcement of the hawkish meeting minutes dragged down the trend of US stocks, coupled with the impact of the news of the Uk and the United States to increase sanctions on Russia, the three major U.S. stock indexes were lower on Wednesday.

As of the close, the Dow Jones closed down 0.42 percent at 34,496.51 points; the Nasdaq down 2.22 percent at 13,888.82; and the S&P 50 down 0.97 percent at 4,481.15 points.

If the Fed's monetary policy accelerates, technology stocks will bear the brunt. On Wednesday, large U.S. technology stocks also generally fell, Apple fell 1.85%, the market value evaporated $52.8 billion, Tesla fell more than 4%, the market value evaporated $4.7 billion (about 30 billion yuan), the two companies the market value evaporated a total of $99.8 billion, about 63.5 billion yuan. In addition, Nvidia fell more than 5%, Microsoft, Amazon fell more than 3%, Google fell 2.88%, Meta fell 3.68%.

On Wednesday, popular Chinese stocks also fell generally, among the new energy vehicles, Weilai fell 3.49%, Xiaopeng Automobile fell 1.8%, and Ideal Automobile fell 1.01%. Among the e-commerce Chinese stocks, Alibaba and JD.com both fell by about 3%, and Pinduoduo fell by 3.31%.