[The Epoch Times, January 26, 2022](Comprehensive report by Epoch Times reporter Zhang Dongguang)US stocksThe performance of the three major indexes so far in January 2022 has been quite unsatisfactory, with the Dow down 5.6%, the S&P 500 down 8.6%, and the Nasdaq down 13.46%. Among them, the S&P index recorded its worst performance since the outbreak of the epidemic in March 2020, while the Nasdaq’s one-month decline was greater than the 10.12% in March 2020, which was close to the 17.73% during the financial crisis in October 2008.
Technology stocks have been sluggish since the beginning of the year. The main fuse is the Fed’s hawkish interest rate hike message. The US 10-year bond yield once soared to 1.9%, triggering an overall decline in technology stocks, which have always had low dividend yields.The Nasdaq closed at 13,539 points on Tuesday (25th), down nearly 16.5% from the historical peak of 16,212 points in November last year, approaching a 20% decline in the bear market, making technology stocks a 2022US stocksof abandoned babies.
Fortunately, this is the critical moment for the intensive release of technology stocks’ financial reports. On Tuesday, Microsoft released its financial report, with earnings per share of $2.48 and revenue of $51.73 billion, up 21% and 20% year-on-year, both better than market expectations of $2.31 and $508.8 One hundred million U.S. dollars. Microsoft shares closed at $288.49 on Tuesday, down 13.8% this year, and rose 2.67% after the market due to earnings news.
Also set to report earnings this week are Tesla and Apple. Analysts expect Tesla, which reports earnings on Wednesday, to earn $2.30 per share last quarter, up from $1.86 in the previous quarter and $0.8 a year earlier. Tesla shares closed at $918.4 on Tuesday, down 23.45% this year.
Apple, whose shares have fallen 12% this year, will report earnings on Thursday, with the market forecasting earnings of $1.31 a share for the last quarter and $5.69 a share for the full year of 2021. The stock, which hit a market cap of $3 trillion this year, has dropped to $2.61 trillion at the latest.
After the U.S. stock market crashed in March 2020, technology stocks benefited from the stay-at-home economy effect during the epidemic, leading U.S. and global stock markets to surge. However, in 2022, as the epidemic may become flu-like, it will exacerbate the overall collapse of housing economic stocks. Peloton, a start-up fitness equipment company, recently said that weaker demand will reduce production.
Video conferencing platform Zoom rose to an all-time high of $559 in October 2020, but only $145 remained on Tuesday, down 20% this year. Video streaming service Netflix’s share price has plunged 38% this year, and its 21% plunge immediately after its recent earnings report surprised many. The stock hit an all-time high of $691 in November last year and fell to $365 on Tuesday.
Amazon, which has tumbled 17.8% this year, closed at $2,799 on Tuesday, well below its all-time high of $3,719 last July. The company is expected to report earnings on February 3. Analysts expected Amazon to earn $3.89 a share last quarter.
The Nasdaq has been falling and falling since 2022, partly due to profit-taking after the post-pandemic rally in 2020, partly due to capital crowding out of soaring U.S. bond yields, and partly due to technical linearity The deterioration caused more killings.
The technical aspect shows that the Nasdaq hit a low of 13,094 points in 2022 on Monday, and it has fully fallen below the support of all short-, medium- and long-term averages, forming a bear arrangement. However, due to the short-term decline and excessive deviation, it is prone to a technical rebound, and building a bottom may be a long process.
Responsible editor: Lin Yan#