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  • 2024-10-30

$1.6T Surge: New Energy & Chips Soar

01, Global Uptrend

In 2022, with only the last trading day remaining, it appears that the global financial markets are hoping to close on an uptick on this final trading day. From last night to this morning, the performance of the overseas stock markets has been quite good, clearing the way for the last trading day of the A-shares. After the Asian markets opened this morning, the Japanese stock market first experienced a gap-up, starting with an increase of more than 0.6%. Last night, when the European stock markets closed, they were almost all up, with Germany's increase exceeding 1%, France's increase approaching 1%, and the UK's increase was relatively low, only rising by 0.2%, but at least it did not fall. It is also worth pointing out that throughout 2022, the UK stock market's annual increase was 1.7%, and as long as there is no significant drop on the last trading day, the UK stock market may be the only one among the major European and American stock markets to rise annually.

02, Unemployment Increase

And this morning, when the US stock market closed, the three major indices all rose. This increase was premised on the deterioration of economic data, which is also a recent sorrow for the US stock market. According to data from the US Department of Labor, the number of people applying for unemployment benefits in the United States last week was slightly higher than expected and 9,000 more than the previous week's data. This may be a slow change, and if this trend continues, the increase in unemployment rate that the Federal Reserve has been looking forward to may be realized.In the view of the Federal Reserve, the current inflation is a spiraling inflation.

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The labor market is strong, causing businesses to have to pay higher hourly wages. The continuous increase in employees' income stimulates prices, leading to further increases, making it difficult for inflation to decrease.

In other words, only when more and more people become unemployed will this cycle be broken. Some economists predict that the unemployment rate needs to rise to 4.6% in 2023 for inflation to have a chance to fall back to 2%.

Although the number of unemployment benefit applicants has slightly increased, the overall performance of the labor market remains very tight.

03, U.S. stocks

However, regardless, the stock market took this news as a positive, so the three major indices all experienced a significant increase last night.

The Dow Jones Index, which had performed relatively well against the downturn, actually had the smallest increase, only rising by 1%, while the S&P 500 Index rose by 1.75%, and the Nasdaq Index's increase last night reached 2.6%.

Among many technology stocks, Tesla's recent performance may be the most eye-catching. Before this, its annual decline had reached 60%, but it closed up 8.1% in the early morning, with the company's current market value at $384.7 billion, already below $400 billion, and a significant shrinkage from the $1.1 trillion at the beginning of the year.

Last night, Apple, Microsoft, Google, and Amazon saw increases of more than 2%. In addition, semiconductor companies Nvidia and TSMC's increases reached 4%, and META's increase also reached 4%.

The market value of these tech giants has grown significantly, and just in this single trading day, it has increased by more than 1.6 trillion yuan in Chinese currency.Although the NASDAQ index has risen significantly, its year-to-date decline still stands at a substantial 33%. The NASDAQ China Financial Index increased slightly more than the broader market last night, with a gain of 2.7%.

Representing the new energy sector, NIO, XPeng, and Li Auto all saw gains last night. XPeng and Li Auto's increases were between 5% and 6%, while NIO's rise was close to 2%.

It appears that the technology and semiconductor sectors of the U.S. stock market finally reversed their downward trend and began to rise last night.