U.S. stocks opened lower today. (Photo from Associated Press)

(We Chinese in America Media Editor Tang Zhao, January 18, 2022) The market is worried that major central banks may raise interest rates faster than originally expected, driving U.S. Treasury yields soaring and triggering selling pressure on the stock market. The three major U.S. stock indexes fell about 1.5% in early trading on the 18th, and the Dow Jones Industrial Average fell more than 500 points. Large technology stocks were slammed, the Nasdaq composite index fell 1.9%, the Philadelphia semiconductor index fell 2.6%, and the TSMC ADR fell 3.9%.

The Dow Jones Industrial Average fell 552 points to 35,359 in early trade. U.S. 2-year Treasury yields, the most sensitive to Fed rate moves, rose above 1 percent for the first time since February 2020, while 10-year Treasury yields also climbed 5 basis points to 1.8305 percent, surging two points higher. highest level in years.

Meta, the parent company of Facebook, fell 3.8%, Alphabet, the parent company of Google, fell 2.9%, Amazon fell 2%, Microsoft fell 1.5%, and Apple also fell 1.3%; Goldman Sachs’ trading revenue in the last quarter was less than expected, and its stock price plummeted 8%. It also weighed on bank stocks.

The Financial Times (FT) reported that the Fed has kept the federal funds rate near zero since March 2020, but interest rate futures contracts show traders expect interest rates to exceed 1% by the end of the year.

The majority of respondents to Deutsche Bank's monthly survey see a bubble in U.S. tech stocks and are more bearish on tech stocks as the Fed turns hawks and U.S. bond yields rise.

Investors speculate that the Fed will tighten monetary policy more aggressively, said Aberdeen Standard portfolio manager Aberdeen Standard, and he thinks the mood in the market is due to JPMorgan Chase CEO Dimon saying last week, “The Fed is likely to raise rates six or seven times this year to curb inflation.”

(Source: Compiled from Online Information)