Financial Associated Press, September 27 (Editor Xia Junxiong) On Monday, Eastern Time, the U.S. stock market continued to decline. Although the three major indexes all turned up during the session, they turned down again after midday, and expanded their losses in late trading. In the end, it closed down collectively for five consecutive trading days, of which the S&P 500 and the Dow both fell about 1%.
Of the 11 S&P 500 sectors, only consumer staples edged higher, with energy, real estate and utilities leading the decline, with the S&P 500 hitting a new closing low for 2022. The Dow is down 20% from its highs set in early January, falling into a bear market for the first time since the coronavirus outbreak.
(The S&P 500 hit a new closing low for the year, source: Yingwei Finance) The dollar strengthened further as the Federal Reserve raised interest rates aggressively and the British government last week announced the most aggressive tax cuts in 50 years. The pound fell to a record low against the dollar on Monday, while the euro also hit its lowest point against the dollar since 2002.
A rising dollar would not only hurt the profits of U.S. multinationals, but also wreak havoc on global trade, much of which is traded in dollars.
Michael Wilson, chief U.S. strategist at Morgan Stanley, warned: āHistorically, the dollar has been so strong that it has led to some kind of financial/economic crisis. If at some point there was a need to watch out for market disruption, now is the time.ā
Market dynamics
As of the close, the Dow Jones index fell 1.11% to 29,260.81 points; the S&P 500 fell 1.03% to 3,655.04 points; the Nasdaq fell 0.60% to 10,802.92 points.
Top stock performance
Most of the large technology stocks closed down, Apple rose 0.23%, Amazon rose 1.20%, Meta fell 2.88%, Google fell 0.58%, Microsoft fell 0.20%, and Netflix fell 1.03%.
New energy vehicle stocks generally rose, Tesla rose 0.25%, NIO fell 0.11%, Xiaopeng Motors rose 4.81%, Li Auto rose 5.56%, Nikola fell 1.03%, Faraday Future rose 9.57%, Workhorse rose 1.13%, Lordstown rose 1.69%, Rivian rose 0.86%, Lucid rose 0.21%
Most popular Chinese concept stocks rose, Alibaba rose 0.14%, JD.com rose 1.97%, Pinduoduo rose 1.02%, Baidu rose 0.61%, New Oriental rose 9.66%, NetEase rose 0.43%, Tencent Music closed flat, Bilibili fell 0.56 %, iQiyi fell 3.03%, and Manbang rose 1.83%
Company news
ćTesla German factory fire broke outć
In the early morning of Monday (September 26) local time, a fire broke out at the Tesla Gigafactory in Greenheide, Germany. In the early hours of the morning, the fire broke out at an outdoor recycling point in the northeast of the factory. About 800 cubic meters of cardboard, paper and wood chips caught fire. Then the Greenhead Fire Department received an alarm call from the factory at 03:33 local time. After hours of fighting with 50 firefighters, the blaze was not brought under control until early morning with no casualties.
[Netflix establishes its first in-house game studio]
On Monday (September 26) local time, streaming giant Netflix announced that it will launch its first in-house video game studio, which will be based in Helsinki, Finland and led by Marko Lastikka. Amir Rahimi, vice president of Netflix Game Studios, said in a statement: “This is another step in our vision of building a world-class game studio that will bring a variety of enjoyable, Deeply engaging original game with no ads and no in-app purchases.”
The new studio will be Netflix’s fourth game studio, having acquired two other Helsinki-based studios, Next Games and Boss Fight Entertainment, earlier this year. Last September, Netflix acquired game developer Night School Studio.
[Chevron and BP will close multiple platforms due to Hurricane Ian]
Chevron will shut down 2 Gulf of Mexico platforms in case of Hurricane Ian, all other Gulf platforms are operating normally. BP will close two drilling rigs, Na Kika and Thunder Horse.
[FF board reorganization received another $100 million in financing]
Faraday Future (“FFIE”) announced Monday that it has reached a definitive agreement with the company’s majority shareholder, FF Top (FF Global Partners), for financing and board reorganization. According to the agreement, FF received up to $100 million in financing from Daguan and ATW Partners in the United States. At the same time, FF Top and FFIE, the major shareholders of FF, formally reached a package of governance structure adjustment agreement including the reorganization of the board of directors. The current executive chairman Sue Swenson and the former chairman (current director) Brian Krolicki will resign. This means that Jia Yueting and his partner team regain control of FF.
[BMW expects to deliver 400,000 electric vehicles in 2023]
BMW expects to increase the company’s electric vehicle deliveries by 70% next year. Nicolas Peter, BMW’s chief financial officer, said that the current demand is still strong, and the global delivery of BMW’s electric vehicles is expected to reach 400,000 in 2023. BMW expects to deliver 240,000 to 245,000 electric vehicles this year.