On Wednesday, local time, the Federal Reserve's January interest rate decision was released: keeping the benchmark interest rate unchanged, in line with market expectations, but Federal Reserve Chairman Powell's remarks about the unlikely interest rate cut in March hit the market's interest rate cut expectations, and U.S. technology stocks were generally **, causing the three major U.S. stock indexes to close down on the same day. As of **, the Dow fell 082%, and the S&P 500 fell 161%, NASDAQ**223%。In the past January, the three major U.S. stock indexes extended their gains at the end of last year, but the momentum weakened as the market's expectations for the Fed to start cutting interest rates earlier cooled. Throughout January, the Dow rose 122%, and the S&P 500 rose 159%, the Nasdaq rose 102%。
The Federal Reserve kept its benchmark interest rate unchanged and the wording of the statement made an important adjustment
The Fed's decision to keep the benchmark interest rate unchanged was in line with expectations, and the market paid more attention to the important adjustment in the wording of the statement at this meeting. Among them, the statement in previous meetings that "the Open Market Committee will take into account the lag in the impact of monetary policy on economic activity and inflation when considering whether to implement additional tightening" has been deleted in its entirety, and it has been adjusted to "it is not appropriate to lower interest rates until there is more confidence that inflation will continue to move towards the 2% target". The above changes were interpreted by the market as a prelude to a rate cut this summer, but these signals were not enough"** because Fed Chair Jerome Powell made it clear that a rate cut in March is unlikely. After the meeting, the market's expectation of a rate cut by the Fed in March has fallen below 40%.
On January 31, U.S. large technology stocks fell.
Shares of Google's parent company fell 75% AMD shares fell more than 5% intraday
Hit by the Federal Reserve's "unlikely rate cut in March", big tech stocks fell on Wednesday. Among them, Google's parent company Alphabet, whose core business advertising and search revenue was lower than expected in the fourth quarter of last year, plunged 75%, almost erasing all of the gains so far this year. Although chip giant AMD Semiconductor (AMD) had higher than expected revenue in the first quarter of this fiscal year, its performance guidance for the quarter was not satisfactory, and it fell 5% in intraday trading on Wednesday5%, * with a decrease of 25%。
On January 31, the three major European stock indexes collectively closed down, and the market value of Novo Nordisk exceeded $500 billion
In Europe, the latest economic data showed that inflationary pressures in Germany and France, the economic engines of the euro zone, still existed, and the three major European stock indexes closed down collectively on Wednesday, even after the brilliant earnings reports of many companies. As of **, the United Kingdom ** fell 047%, France** fell 027%, Germany** fell 040%。*In terms of Danish pharmaceutical giant Novo Nordisk, the company's revenue in 2023 increased by 31% year-on-year, thanks to the hot sales of its ** drugs and diabetes drugs. Boosted by the positive earnings report, the company's market value reached $506 billion on Wednesday, ahead of the French luxury giant LVMH as the European company with the highest market capitalization.
International oil prices rose significantly on January 31 ** in January this year, up more than 6%.
* On the market front, the Federal Reserve is not in a hurry to start cutting interest rates earlier, the U.S. business ** inventory last week increased more than expected month-on-month, and the U.S. production hit a record high in November last year, a series of factors put pressure on international oil prices**, and closed on Wednesday with a more significant decline. As of **, the New York Mercantile Exchange's light weight for March delivery closed at 75 per barrel$85, a decrease of 253%;London Brent*** for March delivery closed at 81 per barrel$71, a decrease of 140%。However, driven by the geopolitical conflict in the Middle East that may interfere with the world's leading factors, international oil prices rose by more than 6% in January this year, ending the previous three consecutive months. Among them, the price of oil in New York is **602%, Brent oil price **601%。
*: CCTV Finance & Economics.