Fed Official Hawkish talk has not been Fermented Major Indexes have not Changed Much
With no important data to be released that day, the market is mainly focused on the latest development of the new covid-19, and the conversations of many officials of the Federal Reserve Committee have not been fermented. On Tuesday (10th), the main index futures were mixed. Dow Jones futures fell slightly by 25 points, S&P 500 futures hovered near the flat, and Nasdaq 100 futures rose slightly.
The bond market speculates that Fed officials are just verbal hawks and maintain interest rate hike expectations unchanged
In recent days, Fed officials’ speeches have turned to Eagle, but the bond market has not completely bought it.
Many officials have talked this month that the stimulus measures may be withdrawn earlier than expected, but Eurodollar futures traders continued to bet that the Federal Reserve will raise interest rates by 25 basis points as early as 2023.
For some Wall Street people, the dovish short-end pricing presents opportunities. Eurodollar options show that there are constant bets that the Fed will raise interest rates more aggressively in 2023 and 2024. Morgan Stanley insists on betting that the Eurodollar will steepen, and this transaction will benefit if market pricing starts to show higher interest rate premiums.
All of this may reach its peak at the Jackson Hole seminar at the end of August, when traders will look for more details on the Fed’s plan to cut down and the path to subsequent interest rate hikes.
The Senate infrastructure bill is about to pass, and the Democrats raise a budget of $3.5 trillion for another ten years. The final voting result of the infrastructure bill proposed by the bipartisan group of the US Senate may be released on Monday at the earliest, and no later than Tuesday at the latest. The outside world is expected to almost certainly pass the barrier. However, lawmakers have turned their attention to the longer-term future. Monday (9th) Propose a budget structure of 3.5 trillion US dollars to realize President Biden’s vision in 10 years.
Capital construction project funds are mainly used for traditional roads, bridges, tunnels, public water transportation and power projects. The $3.5 trillion budget proposed by the Democratic senator focuses on “humanistic infrastructure,” including Biden’s many priority governance projects. The source of the money may be the levy of the wealthy tax and the increase in corporate tax.
Apple’s layout of Apple Car is rumored to be negotiating cooperation with a number of components in South Korea
According to a report by South Korean media The Korea Times on Monday, Apple is negotiating with a number of South Korean EMU companies as part of its electric vehicle outsourcing strategy. People familiar with the matter said that South Korean electric vehicle battery and other component companies will also benefit from Apple’s strategy.
The reports pointed out that Apple and SK Innovation, a battery supplier under the SK Group, have had more in-depth talks. In addition, Apple also held talks with LG Electronics and auto component manufacturer Magna International.
Modena Hurricaneous Former Director of FDA: This is the last wave of COVID-19 in the United States
While the Delta variant virus is raging and the number of new diagnoses in the United States and the rate of hospitalization have soared, Scott Gottlieb, the former director of the U.S. Food and Drug Administration (FDA), said that this may be the last wave of new crown epidemics in the United States.
Anthony Fauci, the Chief Anti-epidemic Adviser of the White House, called on people with low immunity to administer the third booster vaccine as soon as possible so that people with low immunity can be fully protected.
As demand for vaccines continues to expand, vaccine stocks soared on Monday. Modenasoared 17.10% to US$484.47 per share, reaching a record high, with a market value of US$194.5 billion and surpassing Merck. BioNTech (BNTX-US) surged 14.97% simultaneously to US$447.23 per share, a record high.
Goldman Sachs: The unemployment rate in the United States will be reduced to 3.5% next year. Write the best result in 50 years
The employment data released by the US Department of Labor last week was better than expected. Goldman Sachs believes that the growth momentum of the US labor market will continue until 2022.
Goldman Sachs economists headed by Jan Hatzius, on Monday (9th) revised down the unemployment rate forecast for the United States at the end of this year to 4.1%, and believed that it could come to 3.5% next year. This will represent the recovery of U.S. stock employment from the epidemic and the unemployment rate. It fell to its lowest level in 50 years.
Goldman Sachs believes that the level of employment in 2022 will enable the economy to achieve full employment.
Hatzius pointed out that for the rest of this year, employment will continue to grow steadily. One reason is that labor demand remains very strong. With the economic restart again, the expiration of federal unemployment benefits, and the resumption of schools, employment opportunities will have more room for growth.