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Last night, the three major U.S. stock indexes experienced a significant decline, with all falling more than 1.5%. Among them, the Dow Jones Industrial Average plummeted by 1.71%, losing 500 index points.
Currently, the Dow Jones Industrial Average has reached an adjusted low of 28,715.85, which is equivalent to the index level in early November 2020.
From the rebound high of 34,281 points in early August to now, in just six weeks, the Dow has already fallen by over 5,500 points. And during these six weeks, there was only one week of increase, with the rest of the time all in decline.
At the same time, last night, the S&P 500 index reached its lowest point of 3,584, which is also the low point since this round of adjustment. Currently, only the Nasdaq index is a step away from the mid-June level of 10,565 points and has not yet set a new low.
02
Before the stock market opened last night, the U.S. released the core PCE price index for August. The market had expected it to be 4.7%, compared to 4.6% in the previous month. However, the data ultimately announced reached 4.9%. It is not only higher than the previous month but also higher than market expectations.
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This means that although international oil prices have shown a clear correction, and the prices of food and other items have also fallen, inflation continues to permeate other areas. The U.S. hopes to control inflation as soon as possible, but the difficulty is increasing.
Moreover, from the past data in the chart above, we also see that the U.S. has repeatedly hoped for inflation to peak and fall, but these hopes have been repeatedly dashed.
Last month's PCE index dropped from 5 to 4.7, but unexpectedly, it has now risen to 4.9. It seems that last month's decline was just a "false start."From this perspective, it seems that inflation in the United States will continue to fluctuate. Currently, the general market forecast is that before the end of the year, the U.S. will raise interest rates by another 125 basis points.
On the other hand, the earnings season in the United States is approaching, and more and more companies are beginning to release their financial reports, which is also an uncertain factor for the U.S. stock market.
Last night, large-cap technology stocks almost all declined. After a 5% drop the day before, Apple fell another 3% yesterday.
Amazon, Google, Microsoft, and Netflix all saw declines close to 2%.
New energy vehicles continued to decline, with Tesla falling 1.1% yesterday following a significant drop the day before. Xiaopeng and Li Auto from China fell by 1.3% and 1.5% respectively, but NIO rose by 1.2%.
Other Chinese concept stocks experienced mixed movements; Alibaba rose by 1%, Pinduoduo increased by 2%, while JD.com fell by 1.85%, and Baidu declined by 0.2%.
The Eurozone also released its CPI yesterday, with the September preliminary value rising by 10%, continuing to climb significantly from the expected 9.7% and the previous month's 9.1%.
Even after excluding energy and food, the core CPI increase still reached 6.1%, which is 0.5 percentage points higher than the expected value of 5.6%.Relatively speaking, the inflation situation in Europe is more pessimistic than that in the United States, and there is no sign of stopping the rise.
However, European stock markets experienced a miraculous rise yesterday.
Apart from the small increase of only 0.18% in the UK's FTSE 100 index, the stock market indices of countries such as France, Germany, the Netherlands, Italy, Belgium, and Austria all rose by more than 1%, with some countries even exceeding 1.5%.
In terms of commodities, gold fell slightly and remained near $1650; while crude oil prices once again broke below $80, showing weakness and difficulty in rising.