Markets await FOMC minutes, risk aversion

By    4 Jan,2023

The market as a whole maintained a light post-holiday trend, as investors await this week's upcoming Federal Reserve FOMC meeting minutes, and Friday's heavyweight non-farm payrolls data, the market is currently in a strong wait-and-see mood.


However, it should be noted that U.S. debt rates have fallen sharply, but U.S. stocks rose before returning in the first trading day of 2023; at the same time, the market remains concerned about the uncertain economic outlook, risk aversion has helped push gold prices higher, dragging down the trend of crude oil and other commodities.

The former president of the New York Federal Reserve Bank Dudley (William Dudley) in a media interview expected that the U.S. economy has a rather large chance of recession, the Federal Reserve must take action to cool inflation, but he also said he believed that the economic downturn is not serious, and then monetary policy may ease, the recession will end.

Europe and the United States stock market

U.S. bond market ushered in the best start in more than 20 years, the U.S. 10-year Treasury yield once plunged 15.46 basis points to 3.7202 percent, second only to the 20 basis point drop in 2001. The yield on the two-year U.S. Treasury note was 4.3803 percent; the 20-year U.S. Treasury note was 4.0319 percent.

By the close of trading, the Dow Jones Industrial Average fell 10 points or 0.03% to 33,136 points; the U.S. Standard & Poor's 500 Index fell 0.4% to 3,824 points; the Nasdaq Composite Index slipped 0.76% to 10,386 points. In futures, the Nasdaq 100 Index futures (NQZ2) are currently up 0.03%.

In terms of individual stocks, U.S. electric car maker Tesla (NASDAQ:TSLA) (Tesla) shares fell sharply on Tuesday, once expanding to 15.1%, or a market low of $104.64; the market still closed down 12.2% at $108.1. Tesla announced earlier, 2022 full-year electric vehicle deliveries grew 40% year-on-year to 1.31 million units, a record high, but below the 50% annual growth target set by Tesla; the fourth quarter alone, delivery of more than 405,000 units, up 18% quarter-on-quarter, weaker than market expectations. 2022 full-year, Tesla shares plunged 65%, the largest annual decline ever.

In addition, according to media reports, Apple (NASDAQ:AAPL) asked suppliers to reduce the supply of parts, triggering worries about weak demand, dragging down the stock price by up to 4.4%, closing down 3.7%, the market value fell to $1.99 trillion, compared with a year ago to take the lead in becoming the first company with a market value of more than $3 trillion, the market value is now a big shrinkage, but the company's current market value is still hovering at However, the company's current market capitalization still hovers at the $2 trillion level.

Boeing (NYSE:BA) and Disney (NYSE:DIS) shares popped up 2.6% and 2.4%, respectively, as the two strongest Dow components.