Title: US Stock Market Declines for Three Consecutive Days as Investors React to Federal Reserve Meeting Minutes
Date: August 18, 2022
The three major U.S. stock indexes experienced a downward trend for three consecutive days, raising concerns among investors. The Dow Jones index closed down 290.91 points, or 0.84%, at 34,474.83 points. The Nasdaq index fell by 157.70 points, or 1.17%, closing at 13,316.93 points. Similarly, the S&P 500 index dropped by 33.97 points, or 0.77%, ending at 4,370.36 points.
The market reacted to the release of the Federal Reserve’s meeting minutes, which indicated a higher possibility of the central bank maintaining high interest rates for a longer period. This led to worries among investors, contributing to the decline in the stock market. Furthermore, the stock market approached its highest level since 2007, demonstrating increased volatility.
Several large technology stocks witnessed declines, with Meta falling over 3%, Tesla dropping more than 2%, and both Apple and Microsoft experiencing slight decreases. However, Google bucked the trend and rose by over 1%. Chip stocks also faced a downward trend for three consecutive days, with Intel, AMD, ON Semiconductor, and Micron Technology all witnessing significant declines. Nvidia initially fell but closed slightly lower. Most bank stocks experienced losses, including JPMorgan Chase, Goldman Sachs, Citigroup, and Morgan Stanley. Wells Fargo was an exception, rising slightly. Regional banks such as Westpac Bank and Alliance Western Bank faced a decline, while Keycorp experienced a notable rise of over 2%. Energy stocks defied the trend and showed an upward trajectory, with ExxonMobil up nearly 2%, Chevron up more than 1%, and Shell recording a slight increase.
In terms of individual stocks, Faraday Future saw a substantial rise of over 25% due to the approval of a reverse equity split proposal by its shareholders. On the other hand, VinFast (known as the “Vietnam Tesla”) experienced a decline of over 33% after skyrocketing by more than 250% since its U.S. listing. Chain pharmacy giant CVS Health also faced a significant decrease of over 8% following the termination of its collaboration with Blue Shield of California and a shift to Amazon Pharmacy and Cost Plus Drugs.
Meanwhile, Chinese concept stocks performed well, with Tencent Music rising over 5% and Vipshop increasing by over 3%. Alibaba, Li Auto, and Weilai also witnessed gains of more than 1%, while Pinduoduo, iQiyi, Xiaopeng Motors, and Weibo experienced slight increases. However, Baidu, Manbang, JD.com, Futu Holdings, and NetEase faced minor declines. Bilibili, the popular Chinese video platform, rose by 0.69% after releasing its unaudited financial report for the second quarter, which exceeded revenue expectations despite a decline in game business revenue. The company lowered its annual revenue forecast, citing anticipated figures of 22.5-23.5 billion yuan compared to the previous estimate of 24-26 billion yuan.
In Europe, the three major stock indexes also recorded losses. The “Financial Times” average price index of 100 stocks in the London stock market closed at 7,310.21 points, down 0.63%. Similarly, the CAC40 index of the Paris stock market in France dropped by 0.94%, while the German Frankfurt stock market DAX index experienced a decline of 0.71%.
International oil prices closed down, with light crude oil futures for September delivery on the New York Mercantile Exchange closing up at $80.39 per barrel and London Brent crude oil futures for October delivery finishing at $84.12 per barrel.
In summary, the U.S. stock market witnessed a downward trend for three consecutive days, largely influenced by market concerns following the Federal Reserve meeting minutes. Technology and chip stocks faced notable declines, while energy stocks showed resilience. Chinese concept stocks performed well, and European stock markets also experienced losses. International oil prices closed down, and gold futures in New York recorded a decrease.
Disclaimer: The content published by Oriental Fortune is intended for informational purposes only and does not constitute investment advice. Readers should make investment decisions at their own risk.
Source: Oriental Fortune Choice data