News from the Financial Associated Press on December 7 (edited by Shi Zhengcheng)Same as yesterday, against the backdrop of more aggressive interest rate hikes by the Federal Reserve and an uncertain economic outlook, the latest warnings from leading Wall Street banks continued to put pressure on the market, and the three major indexes had another unilateral downward trading day. As of the close, the S&P 500 index fell 1.44% to 3941.26 points; the Nasdaq index fell 2% to 11014.89 points; the Dow Jones index fell 1.03% to 33596.34 points.
(Minute chart of the three major indexes, source: TradingView) In short, JPMorgan Chase’s Jamie Dimon on Tuesday once again emphasized the approaching recession “hurricane”; Goldman Sachs’ Solomon and Bank of America’s Moynihan put The focus has been on pay cuts and slower hiring and layoffs within the bank. Lisa Shalett, chief investment officer at Morgan Stanley Wealth Management, warned that some of the largest companies could experience a bigger-than-expected profit hit next year as the economy slows and inflation erodes consumers’ purchasing power.
Although their observation angles are different, the market’s anxiety about the next few months has clearly appeared on the paper.
Markets never bottom out before recessions start, said David Bailin, chief investment officer at Citigroup Global Wealth. If a recession does occur next year, the market will have to start a pullback from where it is now in the next few months.
Hot Stock Performance
Similar to yesterday, nearly all of the 11 S&P 500 sectors continued to fall on Tuesday, with Energy (-2.65%), Communication Services (-2.57%), Information Technology (-2.14%) the worst performers, and Utilities (+0.66 %) was the only sector to rise.
(Performance of the S&P 500 Index sector, source: Fidelity) Large technology stocks led the market, with Apple down 2.54%, Microsoft down 2.03%, Google down 2.51%, Amazon down 3.03%, Tesla down 1.44%, and Meta down 6.79% %.
Chinese concept stocks performed significantly better than the broader market, and the Nasdaq China Golden Dragon Index bucked the trend and rose 1.32%.
Most of the popular Chinese concept stocks also strengthened. Among them, Lufax rose 10.11%, Ideal Auto rose 4.48%, Bilibili rose 4.42%, Futu Holdings rose 2.42%, Weilai rose 3.44%, Xiaopeng Motors rose 3.09%, Tencent ADR rose 2.34%, JD.com rose 1.98%, and Alibaba rose 1.03%.
company news
【TSMC triples investment in Arizona to $40 billion】
Ahead of U.S. President Joe Biden’s visit to TSMC’s Arizona plant on Tuesday, the company announced plans to build a second wafer fab in Arizona and expand the overall investment to $40 billion. According to previous data, TSMC’s first fab in Arizona has an overall investment of US$12 billion, adopts N4 process technology, and is expected to be put into production in 2024. The company revealed that the second fab will use a 3nm process and is expected to be put into production in 2026.
[Apple abandons the production of “L5 level” fully automatic driving cars and postpones the target launch date to 2026]
Apple has scaled back its future ambitions for a “Level 5” fully autonomous driving plan and pushed back the car’s target launch date by about a year to 2026, according to people familiar with the matter. The car project, known internally as the Titan, has been in limbo for the past few months as Apple executives grapple with the reality that, with current technology, no steering wheel or pedals The vision of a fully self-driving car is unrealistic.
In a major twist on the project, Apple is now planning a less ambitious self-driving design that would include a steering wheel and pedals and only support full autonomy on highways, the people said.
[Morgan Stanley lays off about 2% of staff on Tuesday]
Morgan Stanley cut about 2% of its global workforce on Tuesday, according to people familiar with the matter. The round of layoffs affects about 1,600 of the firm’s 81,567 employees and spreads across the investment bank, the people said, speaking on condition of anonymity.
[Microsoft plans to develop a “super app”]
Based on multiple media reports, sources revealed that the US technology giant Microsoft is considering developing a “super app” (super app) to help the company further enter the mobile search field dominated by Apple and Google. According to reports, Microsoft is currently planning to build a “super application” that can combine shopping, communication, search, news and other services, becoming a new initiative for the company to further expand into consumer services. The report specifically pointed out that Microsoft’s move is to “follow Tencent’s mobile strategy.”
【Apple announced that it will launch Apple Music Sing】
Apple announced on its official website on Tuesday that it will soon launch a new feature called Apple Music Sing. Users can sing along to their favorite songs with adjustable vocals and real-time lyrics. The feature will roll out to Apple Music subscribers worldwide later this month.
[Amazon and the EU reached a final agreement to end the antitrust investigation]
Amazon has reached a final deal with EU antitrust regulators to address EU concerns that its use of data will undercut rivals, CNBC reported on Tuesday, citing people familiar with the matter. The European Commission plans to announce the agreement on Dec. 20, the people said. As part of the deal, Amazon will allow sellers with Prime memberships to choose any shipping company and negotiate terms directly, rather than being required to use Amazon’s services.