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On September 13, Robert Kaplan, vice president of Goldman Sachs Group, said that investors are beginning to question whether they have invested too much money in the United States, and more and more financial institutions are looking to Europe and Asia for growth opportunities. Kaplan said on Friday that some investors are considering whether they should start hedging the US dollar to protect against exchange rate fluctuations. "What has happened since January is that people are still optimistic about the United States, but they are starting to say: I think our allocation to the United States is too high." Kaplan said. "We are having hedging conversations with people around the world, and some of them have never hedged the US dollar in the past 15 years." Kaplan pointed out that although investors still regard the United States as a safe haven for funds, "they have a little more confusion about the US institutional framework."Russian Ministry of Defense: Air defense systems shot down 42 Ukrainian drones in the early hours of Saturday morning.1. The three major U.S. stock indices closed mixed, with the Dow Jones Industrial Average down 0.59%, the S&P 500 down 0.05%, and the Nasdaq up 0.44%, hitting new all-time highs. Merck and Sherwin-Williams fell over 2%, leading the Dow lower. The Wind S7 Index rose 1.14%, with Tesla up over 7% and Apple up over 1%. Chinese concept stocks saw mixed results, with JinkoSolar up over 6% and Douyu down over 4%. 2. U.S. Treasury yields rose across the board, with the 2-year Treasury yield up 0.99 basis points to 3.549%, the 3-year Treasury yield up 1.94 basis points to 3.527%, the 5-year Treasury yield up 3.81 basis points to 3.633%, the 10-year Treasury yield up 4.57 basis points to 4.070%, and the 30-year Treasury yield up 2.69 basis points to 4.681%. 3. International precious metal futures generally closed higher. COMEX gold futures rose 0.19% to $3,680.70 per ounce, a weekly gain of 0.75%. COMEX silver futures rose 1.26% to $42.68 per ounce, a weekly gain of 2.71%. 4. International oil prices rose slightly. The main contract for US crude oil closed up 0.37% at $62.60 per barrel, a weekly gain of 1.18%. The main contract for Brent crude oil rose 0.77% to $66.88 per barrel, a weekly gain of 2.11%. 5. London base metals rose across the board, with LME zinc futures up 1.93% at $2,956.00/ton, up 3.32% for the week; LME nickel futures up 1.52% at $15,380.00/ton, up 0.95% for the week; LME lead futures up 1.13% at $2,019.00/ton, up 1.71% for the week; LME aluminum futures up 1.03% at $2,701.00/ton, up 3.86% for the week; LME tin futures up 0.74% at $34,955.00/ton, up 1.87% for the week; and LME copper futures up 0.13% at $10,064.50/ton, up 1.69% for the week.According to Sky News: BlackRock (BLK.N) will invest 500 million pounds in British data centers during Trumps visit.According to the Financial Times: Nestlé shareholders have called for the chairman to resign due to executive turmoil.

S&P 500 (SPY) Remains Under Pressure At The Start Of The Week

Yoshiki Marjory

Sep 27, 2022 16:38

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S&P 500 Declines The US dollar is testing new highs

As traders exit riskier assets, the S&P 500 keeps trying to settle below the support level at 3660.


A fresh high is being tested by Treasury yields. The yield on 10-year Treasuries is currently attempting to get above 3.85%. 10-year Treasuries yielded barely 2.60% at the beginning of August, so the recent upward movement was significant.


REITs are under a lot of pressure from rising Treasury yields. Ones of the S&P 500's greatest losers today is Vornado Realty, followed by Ventas, Prologis, and Kimco Realty.


The pressure on energy stocks has increased as WTI oil tested new lows. In today's trading session, Baker Hughes, Hess, and Halliburton are all down more than 3%.


Today, some tech stocks are attempting to recover, including Apple and Amazon. Other tech equities, which have been sluggish lately, are still falling. NVIDIA and Meta are reaching fresh lows.


It should be mentioned that a strong currency also acts as a deterrent for American stocks by raising the cost of investing for foreigners. The U.S. Dollar Index recently tested highs last seen in 2002. The worldwide flight to safety, which is negative for riskier assets like stocks, is highlighted by the dollar's surge.