In response to rising inflation, the Federal Reserve implemented a two-pronged approach: * Interest Rate Hikes: The Fed raised the federal funds rate throughout 2022 and early 2023. This makes borrowing more expensive, which can slow economic activity and reduce inflation. * Balance Sheet Reduction: The Fed also began reducing its balance sheet by letting its holdings of Treasury bonds mature without reinvesting the proceeds. This reduces the money supply in circulation, putting downward pressure on inflation. oil above 80, middle east tensions, supply chain disruptions are causing us inflation to remain elevated. recently fed officials reiterate that there is no urgency to reduce fed rate. the market reaction last night was from green to red.
Several factors can impact TSMC's earnings: * Demand for semiconductors: TSMC is a major supplier of chips for smartphones, computers, and other electronic devices. So, fluctuations in demand for these products can affect TSMC's earnings. * Capacity utilization: TSMC is currently operating at near capacity. If demand weakens, it could lead to underutilized capacity and lower earnings. * Pricing: TSMC's pricing power is a key factor in its profitability. If TSMC is forced to lower prices due to competition or other factors, it could hurt its earnings. * Costs: TSMC's costs are also important. Rising costs of materials, labor, or other expenses could squeeze its profit margins. * Geopolitical factors: TSMC is a Taiwanese company, and geopolitical tensions betwee
Tesla's stock price has declined in 2024 due to several factors, including: * Softer demand for EVs: The electric vehicle market is becoming increasingly competitive, and Tesla may be facing some challenges in maintaining its sales growth. * Increased competition: Traditional automakers and new EV startups are investing heavily in developing their own electric vehicles. This competition could put pressure on Tesla's market share and profitability. * Lower-than-expected delivery numbers: Tesla's Q1 2024 deliveries fell short of analyst estimates, which spooked some investors. * Production challenges: Tesla has faced some production challenges in 2024, which have also contributed to the decline in its stock price. recently cybertruck delivery is delayed without explan
There isn't a clear-cut cause-and-effect relationship between epidemics and world wars. World Wars I and II, for instance, weren't direct consequences of widespread diseases. However, epidemics can play a role in creating conditions that make war more likely. Here's how: * Social unrest: Epidemics can cause widespread death, economic hardship, and social disruption. This can lead to anger and resentment, which can be exploited by leaders to push for war. * Weakened governments: Epidemics can strain government resources and make it difficult for them to maintain order. This can create a power vacuum that can be filled by extremist groups or foreign powers. * Competition for resources: If an epidemic creates scarcity of resources, like food or medical supplies, it can lead
tension in the middle east is sparking. oil is nearing 90. oil above 80 is destabilizing for stocks as this would mean inflation is resilient. $SPDR DJIA ETF(DIA)$ tracks the dow jones industrial average the 30 largest market cap companies. looking at its pnf, it shows a confirmation downtrend with 3 red circles. it might retrace to 367 where the previous high is. $SPDR S&P 500 ETF Trust(SPY)$ tracks the s&p500 - 500 largest market cap companies. it might follow the lead of the large caps and retrace to 480. $iShares Russell 2000 ETF(IWM)$ tracks the small caps companies. small caps are the most sensit
us market bounced back after a day of sell off due to hotter than expected cpi. nvda rose for the second consecutive day brushing off the hot cpi. $Apple(AAPL)$ made the biggest jump in a day. time to take a bite? aapl's pnf showed that it had reached the support level at 168. it has yet to show confirmation of an uptrend with 3 green crosses. the candlestick chart suggests that it needs to break the downtrend resistance line before a change in trend is established. aapl earnings is round the corner. Apple (AAPL) is scheduled to report its second fiscal quarter earnings on May 2nd, 2024. Analysts are expecting earnings per share (EPS) of $1.51, which is slightly lower than the $1.52 reported for the same
cpi came in hotter than expected. some analyst estimate only 1 rate cut instead of the 3 that fed officials suggested. the wars around the world seems to be expanding rather than abating. this is most likely due to a very old us president in position. relative to trump, Biden is indecisive and easily cajoled. this has resulted in high energy prices and oil above 80. $NVIDIA Corp(NVDA)$ scored a big rebound last night although us cpi is hotter than expected. according to its pnf it is still on an uptrend.$VanEck Semiconductor ETF(SMH)$ tracks the chip makers as well as the semiconductor industry. its pnf is also on an uptrend. however if you observe their candles
$NIO Inc.(NIO)$ faces huge competition in the ev market. due to the lack of battery swap infrastructure, chinese adoption of hybrid ev is higher than fully electric. nio is burning lots of cash to build the battery swap infrastructure and even roping in partners. in this high interest environment, nio has little choice but to dilute shareholders to raise cash. it was bankrupt once, will it crash and burn again? it's pnf shows that nio is back to its all time low. $MSCI China Electric Vehicles and Future Mobility ETF-NikkoAM(EVS.SI)$ tracks the overall chinese ev market. its pnf shows a rebound from its all time low and is trending up. Chinese EV make
There are two main factors contributing to high inflation right now: supply chain disruptions and the war in Ukraine. Supply chain issues caused by the pandemic continue to cause problems, making it difficult and expensive to get goods to consumers. The war in Ukraine has also driven up energy and food prices, as both Russia and Ukraine are major exporters of these commodities. oil above 80 is also causing market jitters. $SPDR S&P 500 ETF Trust(SPY)$ is hovering, sometimes dipping due to profit taking. many are fomo, just in case the fed decides to cut rates though inflation remains high. $US2Y(US2Y.BOND)$ is trying to make new highs as some fed officials sig