IT and high-tech stocks fall overall in response to Chairman Powell’s hawk remarks Virtual currency-related stocks continue to rise | 22nd Financial Tankan

6/22 (Thursday) morning market trends (compared to the previous day)

traditional finance

• NY Dow: $33,951 -0.3%
• Nasdaq: $13,502 -1.2%
• Nikkei Stock Average: ¥33,575 +0.5%
• USD/JPY: 141.7 +0.02%
• USD Index: 102 -0.4%
• 10-year US Treasury yield: 3.72 +0.1% per annum
• Gold Futures: $1,943 +0.02%

crypto assets

• Bitcoin: $29,918 +6.2%
• Ethereum: $1,877 +5.3%

NY Dow Nasdaq today

Today’s NY Dow continues to drop to -102 dollars. The Nasdaq also closed at -165 dollars lower. Fed Chairman Powell’s hawkish congressional remarks made the possibility of further rate hikes disgusting, leading to IT and high-tech stock selling.

connection: Bitcoin 4 million yen return, virtual currency mining stocks rebound sharply Tonight, Chairman Powell’s parliamentary remarks | 21st Financial Tankan

Chairman Powell’s remarks

Fed Chair Powell mentioned the possibility of further interest rate hikes at the congressional hearings on monetary policy held twice a year on the 21st. “My colleagues and I understand the difficulties that high inflation poses for monetary policy and remain strongly committed to returning inflation to our 2% target (currently 4%),” he said. said it saw interest rates need to rise further to slow U.S. economic growth and contain price pressures.

But the testimony was nothing new. At the FOMC press conference last week, the chairman already pointed out that “the Fed’s policy has covered a wide range of areas, but the full effect of tightening has not yet been felt.” In addition, in the dot plot (interest rate forecast) by FOMC participants released at the time regarding the possibility of additional interest rate hikes, there were speculations of two additional interest rate hikes by the end of the year.

The chairman explained that he would judge the timing of further rate hikes based on data to be obtained in the future, but at the time of the announcement at the FOMC meeting, he said, “Further rate hikes will depend on indicators.”

In his testimony, he said that “speed is not so important now” compared to the pace of rate hikes over the past year-plus, as disinflation is looming. A moratorium on rate hikes in June would be the first step toward a more gradual pace of rate hikes.

connection: US CPI, lowest growth since March 2021

economic indicators

• Thursday, June 22, 21:00: U.S. unemployment claims for the previous week
• Thursday, June 22, 23:00: Chairman Powell’s remarks
• Friday, June 23, 22:45: June Services Purchasing Managers Index (PMI, preliminary)
• June 27 (Tue) 23:00: May new housing sales (vs. previous month)
• Thursday, June 29, 21:30: Jan-Mar Quarterly Real Gross Domestic Product (GDP, Final)
• Friday, June 30, 21:30: May Personal Consumption Expenditure (PCE deflator)
• July 3 (Monday) 8:50: April-June Quarterly Bank of Japan Tankan Forecasts for Large Enterprises in Manufacturing

IT and high-tech stocks fall across the board

U.S. stocks fell for a third consecutive day. The view that the tightening cycle is coming to an end has receded after Powell said almost all FOMC participants “expect some additional rate hikes to be appropriate by the end of the year.” It seems

Individual stocks: NVIDIA-1.7%, c3.ai-9.6%, AMD-5.7%, Tesla-5.46%, Microsoft-1.3%, Alphabet-2%, Amazon-0.7%, Apple-0.5%, Meta- 0.9%.

On the 21st, profit-taking selling to AI-related stocks in particular took precedence. “Some believe that stocks that benefited from the AI ​​boom have risen too far too quickly,” said Lauren Sanfilippo, senior investment strategist at Bank of America Private Bank & Merrill. There are concerns about overbought,” he said. (Bloomberg report)

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Virtual currency-related stocks high

• Coinbase｜$58 (+1.7%/+4.5%)
• MicroStrategy | $331 (+5.7%/+12.9%)
• Marathon Digital | $12.2 (+4.1%/+22.3%)

Cryptocurrency-related stocks continued to rise following Bitcoin’s return to the $30,000 level. It was temporarily sold like other IT stocks in response to Chairman Powell’s remarks, but has maintained positive territory.

connection: Bitcoin is temporarily in the $30,000 range, a series of applications for spot-type Bitcoin ETF | Summary of important bulletins on the morning of the 22nd

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