Big news in the early morning! The Fed Chairman spoke out, scaring the US stock market, Tesla plummeted 520 billion! Suddenly all the products were taken off the shelves, and the price skyrocketed. What happened?

币资讯 · 2023-10-20T02:26:47.000Z

Powell "scared" U.S. stocks. Federal Reserve Chairman Powell's latest speech has become the focus of the market's most attention. At 0:00 a.m. on October 20, Beijing time, Powell spoke at the Economic Club of New York and said that if he sees further signs of strong economic growth, he may raise interest rates again. This speech caused a huge shock in the U.S. stock market. The three major indexes turned from gains to losses. The Dow Jones Industrial Average plunged more than 483 points during the session. As of the close, the Dow Jones Industrial Average fell 0.75%, the Nasdaq fell 0.96%, and the S&P 500 fell 0.85%. Affected by the "thunder" in performance, Tesla's stock price plunged 9.3% overnight, and its total market value evaporated by US$71.6 billion (approximately RMB 520 billion) in a single day. According to the latest financial report, under GAAP calculation standards, Tesla's stock price plummeted 9.3% overnight. Tesla’s net profit attributable to its parent company in the third quarter was US$1.853 billion, a sharp decrease of 44% year-on-year. It is worth noting that the new U.S. chip export regulations have begun to impact the consumer market, and Nvidia’s flagship gaming graphics cards were out of stock overnight. On October 18, Nvidia’s top flagship graphics card RTX 4090 began to be completely removed from the shelves. It is currently out of stock on JD.com. Searching for RTX 4090 only shows other models of graphics cards such as RTX 4070. At present, some third-party stores on Taobao show that the products are available, but the prices have generally doubled, and even reached a high price of nearly 50,000 yuan. Powell's latest speech As the Federal Reserve is about to enter a period of silence before the November interest rate decision, Federal Reserve Chairman Powell's latest speech has become the focus of the market's most attention. At 0:00 am on October 20, Beijing time, Powell delivered his latest speech at the Economic Club of New York, triggering a huge shock in the US stock market. Powell said: "Given the many uncertainties and risks, and the progress we have made, the Fed is proceeding cautiously." But Powell further said that the Fed is paying attention to recent data showing the resilience of economic growth and labor demand. More evidence that growth is above trend, or that the labor market is no longer easing, could put inflation at risk and further tightening of monetary policy may be needed. Powell believes that financial conditions are tightening due to rising long-term U.S. bond yields, and said that "ongoing changes in financial conditions may have an impact on the path of monetary policy." He added that rising U.S. bond yields may mean that interest rates are likely to rise. Less necessary, the Fed will have to let the rise in yields play out and watch, but the rise in yields does not appear to be related to market expectations for further Fed rate hikes.He also mentioned multiple risks facing the outlook for monetary policy, including the heightened geopolitical tensions (brought about by the new round of Palestinian-Israeli conflict), which poses major risks to global economic activity. The Fed is charged with monitoring the impact of these developments on the economy, which remains highly uncertain. During the question-and-answer session, Powell also said that "evidence shows that the Fed's current monetary policy is not too tight," seeming to suggest that there is room for further tightening. Powell also said that the pace of interest rate hikes will be slowed this year to give the tightening action time to take effect, but "interest rates may not be high enough and maintained long enough." Analysts said that Powell's speech was basically in line with market expectations of a "hawkish tone" and reiterated that policy should be advanced "cautiously". It not only warned against premature complacency in cooling inflation, but also confirmed that "interest rates will remain at higher levels for longer." general direction. U.S. stocks plummeted across the board, and Powell's speech had a considerable impact on the market. Among them, the Dow's largest intraday plunge exceeded 483 points. As of the close, the Dow fell 0.75%, the Nasdaq fell 0.96%, and the S&P 500 fell 0.85%. In terms of individual stocks, U.S. technology stocks collectively weakened. Tesla, whose performance growth unexpectedly slowed down, fell 9.3%, and its market value evaporated by US$71.6 billion (approximately RMB 520 billion) in a single day; Meta closed down 1.3%, and Apple closed down. 0.2%, Nvidia fell 0.2%. Chinese concept stocks also adjusted in line with the general trend of U.S. stocks. The Nasdaq Golden Dragon China Index closed down 2.1%, Baidu fell nearly 6%, JD.com fell more than 3%, NIO fell more than 2%, Alibaba, Pinduoduo, Tencent Pink List , NetEase, Bilibili, Xpeng Motors, and Li Auto fell more than 1%. In addition, the European market also weakened collectively, with the European Stoxx 600 Index, the British FTSE 100 Index, the French CAC40 Index, the Spanish IBEX35 Index, and the Italian FTSE MIB Index all falling by more than 1%. At present, the outlook for the Federal Reserve to raise interest rates is full of fog. U.S. retail sales data released this week that exceeded expectations have shaken the market's expectations that the Federal Reserve's interest rate hike policy is coming to an end. The outlook for inflation is unclear, and Powell's speech caused another violent impact on the U.S. Treasury market. The 30-year U.S. bond yield once exceeded the 5% mark, closing at 5.109% overnight; the 10-year U.S. bond yield is also approaching 5%, both reaching levels not seen since 2007. highest level.In addition, the latest data shows that the number of people applying for unemployment benefits for the first time in the United States last week was 198,000, the smallest increase since the week of January 23, 2023. It is estimated to be 210,000, compared with the previous value of 209,000. This means that the U.S. job market is still hotter than expected. Nomura Securities analyst Charlie McElligott said: The better the economic data, the more likely the Fed will take action to further tighten financial conditions. The U.S. economy is surprisingly strong despite the highest interest rates in 22 years. JPMorgan Chase even warned that its clients believe the Federal Reserve may need to raise interest rates to "at least 6%" to fully cool the job market and curb consumer spending. Completely removed from shelves, prices skyrocketed New U.S. chip export regulations are impacting the civilian consumer market, and NVIDIA's flagship gaming graphics card was out of stock across the entire network overnight. On the afternoon of October 18, Nvidia’s top flagship graphics card RTX 4090 began to be completely removed from the shelves. It is currently out of stock on JD.com. Searching for RTX 4090 only shows other models of graphics cards such as RTX 4070. At present, some third-party stores on Taobao show that the products are available, but the prices have generally doubled, and the selling prices have reached as high as more than 20,000 yuan, and even as high as nearly 50,000 yuan. NVIDIA partners such as ASUS, MSI, GALAXY, etc. have also removed this model of non-public graphics cards from the shelves, and the official flagship stores have shown that they are out of stock. The final fate of Nvidia's RTX 4090 graphics card will be revealed in 30 days. It is reported that the RTX 4090 will be launched at the end of 2022, with an official recommended retail price starting from 12,999 yuan. As a flagship GPU equipped with the Ada Lovelace architecture, this graphics card is more expensive and is mainly aimed at high-end players. For a long time, due to high pricing and low demand, the supply and demand of graphics cards equipped with RTX 4090 GPUs have been stable and prices have been less volatile. However, due to its high computing power, this graphics card has a certain price-performance ratio in AI computing. Some organizations choose the RTX 4090 graphics card for AI computing purposes. On October 17, the United States updated its new chip export regulations. In addition to dedicated AI computing chips, it also covers high-end gaming graphics card products for the first time. Specifically, the United States changed the setting of parameter specifications to "total processing performance" or "performance density." Chips above a certain value are subject to export controls. Affected products include graphics processing units (GPUs), tensor processing units (TPUs), neural processors, memory processors, etc., including the RTX 4090.The impact of this new regulation has begun to appear. In addition to the RTX 4090 being out of stock across the entire network, NVIDIA's business has also been affected. On October 18, NVIDIA disclosed in a regulatory document submitted to the U.S. Securities and Exchange Commission (SEC) that the additional licensing requirements for chip performance thresholds in the above-mentioned export control revisions will affect NVIDIA A800, H800 and other products, and cover Mainly used in gaming PC (personal computer) consumer-grade flagship product RTX 4090. Products such as DGX and HGX that integrate the above chips are also covered by the new regulations. NVIDIA mentioned that this may affect the company's ability to complete product development on time, support existing customers of restricted products, and supply restricted products to customers outside restricted regions. In response to the new export regulations, Nvidia responded, "We will comply with all applicable regulations while working hard to provide products that support thousands of applications across multiple industries. Given the global market demand for our products, we expect financial losses in the short term." There will be no material impact on performance."

Powell "scares" the US stock market.
The latest speech by Federal Reserve Chairman Powell has become the focus of the market. At 0:00 am on October 20th, Beijing time, Powell gave a speech at the New York Economic Club, saying that if there are further signs of strong economic growth, it is possible to raise interest rates again. This speech caused a huge shock in the US stock market, and the three major indexes turned from rising to falling. The Dow Jones Industrial Average plunged more than 483 points during the session. As of the close, the Dow Jones Industrial Average fell 0.75%, the Nasdaq fell 0.96%, and the S&P 500 fell 0.85%.
Affected by the "thunderstorm" of its performance, Tesla's stock price plummeted, falling 9.3% overnight, and its total market value evaporated by US$71.6 billion (approximately RMB 520 billion) in a single day. According to the latest financial report, under the GAAP calculation standards, Tesla's net profit attributable to shareholders in the third quarter was US$1.853 billion, a sharp decrease of 44% year-on-year.
It is worth noting that the new US chip export regulations have begun to impact the consumer market, and Nvidia's flagship gaming graphics cards were out of stock overnight. On October 18, Nvidia's top flagship graphics card RTX 4090 began to be completely removed from the shelves. Currently, it is completely out of stock on JD.com. Searching for RTX 4090 only shows other models of graphics cards such as RTX 4070. At present, some third-party stores on Taobao show that they are in stock, but the prices have generally doubled, and even reached a high price of nearly 50,000 yuan.
Powell's latest statement
As the Federal Reserve is about to enter the blackout period before its November interest rate decision, the latest speech by Federal Reserve Chairman Powell has become the focus of market attention.
At 0:00 am on October 20th, Beijing time, Powell delivered his latest speech at the New York Economic Club, causing a huge shock in the U.S. stock market.
“The Fed is proceeding cautiously given the many uncertainties and risks, as well as the progress we have made,” Powell said.
But Powell further said that the Fed is watching recent data showing resilience in economic growth and labor demand. If more evidence shows that economic growth is above trend or that the labor market is no longer loose, it could put inflation at risk and further tightening of monetary policy may be needed.
Powell said financial conditions have tightened due to rising long-term Treasury yields, and said "continued changes in financial conditions could have implications for the path of monetary policy."
He added that rising U.S. Treasury yields may mean a reduced need for rate hikes and the Fed will have to let the rise in yields play out and watch, but the rise in yields appears to have nothing to do with market expectations of further Fed rate hikes.
He also mentioned the multiple risks facing the monetary policy outlook, including that geopolitical tensions (brought about by the new round of Israeli-Palestinian conflict) are highly intensified, posing a significant risk to global economic activity. The Fed's responsibility is to monitor the impact of these developments on the economy, which remains highly uncertain.
During the question-and-answer session, Powell also said, "The evidence suggests that the Fed's current monetary policy is not too tight," seemingly suggesting that there is room for further tightening.
Powell also said that slowing the pace of rate hikes this year would give tightening actions time to take effect, but "interest rates may not be high enough or last long enough."
Analysts said that Powell's speech basically met market expectations of a "hawkish tone", reiterating that policies should be advanced "cautiously". It not only warned against being complacent too early about cooling inflation, but also confirmed the general direction of "interest rates remaining at higher levels for longer".
US stocks plunged across the board
Powell's speech had a significant impact on the market. The Dow Jones Industrial Average plunged more than 483 points during the session. By the close of trading, the Dow Jones Industrial Average fell 0.75%, the Nasdaq fell 0.96%, and the S&P 500 fell 0.85%.
In terms of individual stocks, U.S. technology stocks collectively weakened. Tesla, whose performance growth unexpectedly slowed down, fell 9.3%, and its market value evaporated by US$71.6 billion (about RMB 520 billion) in a single day; Meta closed down 1.3%, Apple closed down 0.2%, and Nvidia fell 0.2%.
Chinese stocks also followed the general trend of U.S. stocks. The Nasdaq Golden Dragon China Index closed down 2.1%, Baidu fell nearly 6%, JD.com fell more than 3%, NIO fell more than 2%, Alibaba, Pinduoduo, Tencent Pink Sheets, NetEase, Bilibili, Xpeng Motors, and Li Auto fell more than 1%.
In addition, European markets also weakened collectively, with the Euro Stoxx 600 Index, the UK FTSE 100 Index, the French CAC40 Index, the Spanish IBEX35 Index and the Italian FTSE MIB Index all falling by more than 1%.
Currently, the prospects for the Fed's interest rate hikes are shrouded in mystery. The much-better-than-expected U.S. retail data released this week shook the market's expectations that the Fed's interest rate hike policy is nearing an end.
The inflation outlook is unclear, and Powell's speech once again hit the U.S. Treasury market hard. The 30-year U.S. Treasury yield once broke through the 5% mark and closed at 5.109% overnight; the 10-year U.S. Treasury yield is also approaching 5%, both reaching the highest level since 2007.
In addition, the latest data shows that the number of first-time unemployment claims in the United States last week was 198,000, the smallest increase since the week of January 23, 2023, with an estimated 210,000 and a previous value of 209,000. This means that the U.S. job market is still hotter than expected.
Nomura Securities analyst Charlie McElligott said: The better the economic data, the more likely the Fed is to take action to further tighten financial conditions. The U.S. economy, however, has been surprisingly strong despite the highest interest rates in 22 years.
JPMorgan Chase even warned that its clients believe the Federal Reserve may need to raise interest rates to "at least 6%" to sufficiently cool the job market and curb consumer spending.
Completely removed from shelves, prices skyrocketed
The new US chip export regulations are impacting the civilian consumer market, and Nvidia's flagship gaming graphics cards were out of stock across the entire network overnight.
On the afternoon of October 18, Nvidia's top flagship graphics card RTX 4090 began to be completely removed from the shelves. It is currently out of stock on JD.com. Searching for RTX 4090 only shows other models of graphics cards such as RTX 4070.
At present, some third-party stores on Taobao show that the product is in stock, but the prices have generally doubled, reaching more than 20,000 yuan, and even reaching a high price of nearly 50,000 yuan.
Nvidia partners such as ASUS, MSI, and GALAX have also removed the non-public graphics cards of this model from their shelves, and the official flagship stores have all shown that they are out of stock. The final fate of Nvidia's RTX 4090 graphics card will be revealed in 30 days.
It is reported that the RTX 4090 will be launched at the end of 2022, with an official suggested retail price starting at 12,999 yuan. As a flagship GPU equipped with the Ada Lovelace architecture, this graphics card is relatively expensive and is mainly aimed at high-end players.
For a long time, due to high pricing and low demand, the supply and demand of graphics cards equipped with RTX 4090 GPUs have been stable, and prices have rarely fluctuated. However, due to its high computing power, this graphics card has a certain cost-effectiveness in AI computing, and some organizations choose RTX 4090 graphics cards for AI computing purposes.
On October 17, the United States updated its chip export regulations, which covered high-end gaming graphics cards for the first time in addition to dedicated AI computing chips.
Specifically, the United States changed the parameter specification setting to "total processing performance" or "performance density", and chips above a certain value are subject to export control. Affected products include graphics processing units (GPUs), tensor processing units (TPUs), neural processors, memory processors, etc., including RTX 4090.
The impact of the new regulations has begun to appear. In addition to the RTX 4090 being out of stock across the entire network, Nvidia's business has also been affected.
On October 18, Nvidia disclosed in a regulatory filing with the U.S. Securities and Exchange Commission (SEC) that the additional licensing requirements for chip performance thresholds in the above-mentioned export control revisions will affect Nvidia's A800, H800 and other products, and cover the RTX 4090, a consumer flagship product mainly used in gaming PCs (personal computers). Products such as DGX and HGX that integrate the above chips are also covered by the new regulations. Nvidia mentioned that this may affect the company's ability to complete product development on time, support existing customers of restricted products, and supply restricted products to customers outside of restricted areas.
In response to the new export regulations, Nvidia said, "We will comply with all applicable regulations while striving to provide products that support thousands of applications in multiple industries. Given the global market demand for our products, we do not expect a substantial impact on financial performance in the short term."

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